Spotify Q4 2025 Earnings: Revenue & User Growth Beat Expectations
- Spotify delivered a strong finish to 2025, exceeding analyst expectations in its fourth-quarter earnings report released on February 10, 2026.
- The company’s premium subscriber base grew by 10% year-over-year, reaching 290 million.
- The strong performance is attributed, in part, to successful initiatives like “Spotify Wrapped,” which saw over 300 million users engage with the personalized year-end feature.
Spotify delivered a strong finish to , exceeding analyst expectations in its fourth-quarter earnings report released on . The Swedish audio streaming giant reported revenue of €4.53 billion, a 7% year-over-year increase, slightly surpassing the anticipated €4.52 billion. Earnings per share reached €4.43, significantly exceeding the expected €2.74. Net profit soared to €1.17 billion, a substantial increase from the €367 million reported in the same quarter the previous year, with operating income climbing 20% to €701 million.
User growth remained a key driver of Spotify’s success. The company’s premium subscriber base grew by 10% year-over-year, reaching 290 million. Monthly Active Users (MAUs) climbed 11% to 751 million, surpassing the FactSet estimate of 744.7 million. Notably, the number of ad-supported users also saw a 12% increase, reaching 476 million.
The strong performance is attributed, in part, to successful initiatives like “Spotify Wrapped,” which saw over 300 million users engage with the personalized year-end feature. The company also highlighted growth in Latin America, Europe, and other international markets, as well as improvements to its mobile free tier as contributing factors to the record-high MAU net additions.
Looking ahead to , Spotify anticipates adding 8 million more monthly active users and 3 million premium subscribers in the current quarter. Revenue projections are set at €4.5 billion, slightly below the €4.58 billion expected by analysts, according to CNBC. Despite this modest revenue forecast, Spotify’s stock experienced a significant boost, rising approximately 15% following the earnings announcement.
Spotify’s leadership is framing as the “Year of Raising Ambition,” building on what they termed the “Year of Accelerated Execution” in . Co-CEO Alex Norström emphasized the company’s historical focus on ambitious goals as a driving force behind its success. “We closed out what we dubbed as the Year of Accelerated Execution with another solid quarter, delivering a strong finish to ,” Norström stated. “It’s incredible to think that we now serve over three quarters of a billion people around the world.”
Founder and Executive Chairman Daniel Ek articulated a broader vision for Spotify, positioning it as a “technology platform for audio—and increasingly, for all the ways creators connect with audiences.” He believes the company is well-positioned to address the challenges and opportunities presented by emerging technologies like AI, new interfaces, wearables, and evolving content interaction methods. “The next wave of technology shifts—AI, new interfaces, wearables, new ways of interacting with content—these will reshape how people discover and experience audio and media,” Ek said.
The company is actively investing in research and development, viewing itself as “the R&D department for the music industry,” according to Co-CEO Gustav Söderström. Söderström believes that embracing AI will be crucial for success in the evolving audio landscape. “The entire industry stands to benefit from this [AI] paradigm shift but we believe those who embrace this change and move fast, will benefit the most.”
Spotify’s financial results also reflect a commitment to supporting the music ecosystem. The company reported paying out over $11 billion to artists in and facilitating $1 billion in ticket sales through its platform, connecting users with live shows featuring artists and venues they follow. Recent initiatives include the rollout of official music videos for premium subscribers in the U.S. And Canada, and the continued expansion of AI-powered tools.
The company has also been adjusting its pricing structure, recently increasing prices for Premium users in the U.S., Estonia, and Latvia. This move, while potentially impacting subscriber growth, signals a focus on improving profitability and reinvesting in innovation. The earnings report underscores Spotify’s continued dominance in the audio streaming market and its ambition to remain at the forefront of technological advancements in the industry.