Spotify has announced robust second quarter earnings for 2025, revealing significant gains in both monthly active users and subscribers. The report, covering the period from April to June 2025, underscores the streaming giant’s continued dominance in the music, podcast, and audiobook markets, successfully connecting a growing ecosystem of artists, creators, authors, and fans.
Record User Engagement Continues
The company reported a substantial increase in user activity throughout the first half of 2025. Notably, the second quarter of the year marked Spotify’s second-highest performance for monthly active user (MAU) net additions, indicating a strong and sustained influx of new users and retained engagement from existing ones. By the close of June 2025, Spotify’s user base had expanded to nearly 700 million individuals.
Subscriber Growth Accelerates Year-Over-Year
Spotify’s premium subscriber base also experienced significant expansion. The company reported over 275 million subscribers as of the end of the second quarter, representing a more than 10% increase year-over-year. More specifically, subscribers grew by 12% year-over-year, reaching 276 million. This growth trajectory is further highlighted by a greater than 30% increase in subscriber net additions in the first half of 2025 compared to the same period in 2024, demonstrating accelerating momentum in converting free users to paying subscribers.
Financial Performance Strengthens
Financially, Spotify’s second quarter results reflect a healthy expansion of its business. Total revenue saw a 10% year-over-year increase, reaching €4.2 billion. This revenue growth was complemented by an improved gross margin, which rose by 227 basis points year-over-year to 31.5%. The company’s operating income for the quarter reached €406 million, signaling strong profitability alongside user and revenue expansion.
Platform Evolution Driving Value
Daniel Ek, Founder and CEO of Spotify, commented on the company’s performance, emphasizing the role of continuous platform evolution in delivering value to users. “Our continuous evolution creates value for our users, attracting more people to streaming and boosting the music, podcast, and audiobook industries,” Ek stated. This forward-looking approach aims to foster deeper engagement across all audio formats and solidify Spotify’s position as a central hub for audio content consumption and creation.
Innovations for Creators and Fans
In conjunction with its financial results, Spotify also shared an infographic showcasing its latest features designed to enhance the experience for both creators and fans. These updates include advancements in personalized content delivery and new tools for artists and authors to connect with their audiences. Among the highlighted innovations is the ongoing development and refinement of Spotify’s AI DJ, a feature designed to offer a personalized listening experience.
Overall, Spotify’s Q2 2025 earnings report paints a picture of a thriving digital audio platform, marked by impressive user growth, expanding subscriber numbers, and solid financial performance. The company’s strategic focus on innovation and platform enhancement appears to be successfully driving engagement and solidifying its leadership in the global audio market.
