Spotify adds 8 million subscribers, but ad revenue dips

New Delhi: Spotify added 8 million Premium subscribers in Q2 2025, bringing its total paid user base to 276 million, a 12% year-on-year increase that exceeded the company’s forecast. 

This strong growth in paid plans helped push total Monthly Active Users (MAUs) to 696 million, up 11% YoY, and 7 million above guidance. In its shareholder note, Spotify highlighted stronger-than-expected subscriber growth in Europe and Latin America, with the platform surpassing 100 million subscribers in Europe for the first time.

Despite this user growth, Spotify posted a net loss of €86 million, reversing a profit of €274 million reported in Q2 last year. The loss was driven by rising operating costs, including €116 million in social charges related to share-based compensation, as well as currency headwinds worth €104 million against revenue.

Spotify’s ad-supported revenue declined 1% year-on-year to €453 million in Q2, though it rose 5% on a constant currency basis. The company attributed this performance to an increase in ad impressions, but noted it was partially offset by softness in pricing and ongoing optimisation of podcast inventory.

Spotify described the segment as still undergoing an “advertising business transformation”, and said its automated sales channels were the strongest contributors to ad revenue growth.

Looking ahead, Spotify has issued conservative guidance for Q3 2025, forecasting 281 million Premium subscribers, 710 million MAUs, and total revenue of €4.2 billion. Separately, Spotify’s board approved a $1 billion increase to its share repurchase program, bringing the total authorization to $2 billion, with $1.9 billion still available.