Spotify has announced its financial results for the Spotify Q3 2025, marking another period of remarkable growth and record profitability for the global music streaming leader.
The company, which dubbed 2025 as its “Year of Accelerated Execution,” reported strong performance across all key metrics, including user growth, revenue, and profit. Spotify’s continued expansion in music, podcasts, and audiobooks has helped it reach new heights in engagement and monetization.
Key Highlights of Spotify’s Q3 2025 Earnings
- Premium Subscribers increased by 12% year-over-year, reaching 281 million.
- Monthly Active Users (MAUs) grew by 11% year-over-year to 713 million, surpassing the 700 million milestone for the first time.
- Total Revenue climbed 12% year-over-year (in constant currency) to €4.3 billion.
- Gross Margin improved by 56 basis points (bps) year-over-year to 31.6%.
- Operating Income reached €582 million, a record for the platform.
Daniel Ek, Spotify’s Founder and CEO, expressed optimism about the company’s trajectory, stating,
“The business is healthy. We’re shipping faster than ever. And we have the tools we need — pricing, product innovation, operational leverage, and eventually the ads turnaround — to deliver both revenue growth and profit expansion. It all comes back to user fundamentals, and that’s where we are: 700 million users who keep coming back, engagement at all-time highs. We’re building Spotify for the long-term.”
New Features Fueling Spotify’s Growth
In Q3 2025, Spotify rolled out several new features and platform improvements that enhanced user engagement and satisfaction. These included:
- A redesigned Free tier for better discovery and user retention.
- Playlist mixing tools and lossless audio for improved listening experiences.
- Integration with ChatGPT to enhance content discovery and personalization.
- The launch of Spotify Messages, improving social connectivity within the app.
These innovations have made it easier for users to discover, connect, and create on Spotify reinforcing the company’s leadership in the global audio streaming industry.
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With engagement levels at record highs and strategic investments continuing in content, advertising, and AI-driven recommendations, Spotify appears well-positioned for sustainable long-term growth. The Q3 performance underscores the platform’s success in combining user experience with profitability, solidifying its status as the world’s leading destination for audio entertainment.
