Spotify Q3 2025 earnings
File photo of Spotify

Spotify reports strong Q3 earnings with record user growth

Karachi, November 4, 2025: Spotify posted another strong quarter in Q3 2025, delivering double-digit growth in subscribers and revenue while surpassing 700 million Monthly Active Users (MAUs) for the first time, solidifying its global leadership in the audio-streaming industry.

The company, which labeled 2025 as the “Year of Accelerated Execution,” reported a 12% year-on-year increase in Premium Subscribers, reaching 281 million, while MAUs grew 11% YoY to 713 million.

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Spotify’s total revenue rose 12% YoY (constant currency) to €4.3 billion, driven by subscriber expansion, rising engagement across music, podcasts, and audiobooks, and improved monetisation. Gross margin grew to 31.6%, while operating income surged to €582 million, reflecting stronger operational leverage.

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CEO Daniel Ek said the platform is “healthy and shipping faster than ever,” citing innovations in pricing, product development, and advertising solutions. “It all comes back to user fundamentals—and that’s where we are: 700 million users, engagement at all-time highs,” he noted.

During Q3, Spotify rolled out several new features, including an enhanced Free tier, playlist mixing tools, lossless audio, ChatGPT integration, and improved messaging functions—all designed to strengthen user discovery and retention.

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The expansion of cross-platform tools, creator-focused upgrades, and AI-powered experiences contributed to deeper engagement and increased time spent on the platform.

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