Spotify nears 700 million users but swings to quarterly loss in Q2 2025

Spotify added 18 million MAUs in Q2, growing its total user base by 11 percent YoY to 696 million

Audio streaming giant Spotify neared 700 million monthly active users (MAUs) in the second quarter of 2025, marking the company's second-highest net additions for a second quarter.

However, higher expenses related to employees, professional services, marketing, and so-called social charges pushed the company to a €86 million ($99.5 million) loss in Q2 2025, compared to a €274 million profit in the same period last year.

Social charges refer to payroll taxes tied to employee salaries and benefits in certain countries, which increase as the company’s share price rises. Spotify noted that these charges reached €115 million in the quarter, exceeding forecasts by €98 million due to the share price increase.

The audio streaming service added 18 million MAUs during the quarter, growing its total user base by 11 percent year-on-year (YoY) to 696 million. The increase was driven by growth in Latin America and the Rest of World region. Paying subscribers grew by 12 percent YoY to 276 million.

These subscriber gains drove a 12 percent YoY increase in subscription revenue, which accounts for the majority of the company’s overall revenue, reaching €3.74 billion in the quarter.

Spotify's ad-supported revenues however declined by 1 percent YoY to €453 million. Total revenue rose 10 percent YoY to €4.19 billion. In Q3 2025, Spotify expects to reach 281 million subscribers and 710 million monthly active users. Total revenue is expected to rise to €4.2 billion.

“People come to Spotify and they stay on Spotify. By constantly evolving, we create more and more value for the almost 700 million people using our platform,” said Spotify CEO Daniel Ek “This value not only benefits users but it’s attracting more people to streaming and as a result, it’s also boosted the industries of music, podcasts, and audiobooks.”

Ek added "What we're seeing is, the more product improvements we're driving, the better people are engaging. The more formats we're adding like new videos...people are now spending more days than ever with Spotify. All of this drives lifetime value."

During the quarter, Spotify expanded audiobooks to Germany, Austria, Switzerland, and Liechtenstein, giving users access to over 350,000 titles. It also launched two new monthly add-on Audiobooks subscriptions that offer additional listening hours.

Other feature updates include voice requests for the service’s artificial intelligence (AI) DJ from premium subscribers; an expanded rollout of its AI Playlist feature to more than 40 new markets and a new Upcoming Releases hub that helps users pre-save upcoming music, preview the track list, watch clips, and purchase merchandise among others.

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