Spotify Revenue Climbs 7%, Adds 5M Paid Premium Subscribers

Spotify has reached a significant milestone with 713 million monthly active users in the third quarter of 2025, marking an 11% increase and surpassing expectations with 17 million net gain.

As per Variety, the streaming giant’s impressive growth trajectory continued across both its free and premium tiers.

The company’s premium subscriber base expanded by 12% to 281 million users, adding 5 million paid subscribers during the quarter. This growth contributed to Spotify’s total revenue climbing 7% to €4.27 billion, while operating income surged 43% to €582 million. The streaming service transformed its financial position dramatically, reporting a €899 million net profit compared to an €86 million loss in the year-earlier period.

“The business is healthy. We’re shipping faster than ever,” said Daniel Ek, Spotify’s founder and CEO, highlighting the company’s robust user fundamentals. “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.”

However, a significant leadership transition awaits Spotify as Ek prepares to step down from his CEO role at the beginning of 2026. The company will adopt a dual-leadership structure with Gustav Söderström, currently co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer, serving as co-CEOs. Ek will remain involved as executive chairman, focusing on long-term strategic direction.

The third quarter saw Spotify accelerate its product development, launching 30 new features and updates for both free and premium users. Notable additions included an enhanced free tier, playlist mixing tools, lossless audio capabilities, ChatGPT integration and in-app direct messaging.

Strategic partnerships have emerged as a key growth driver for Spotify’s expanding ecosystem. The company secured a notable content distribution deal with Netflix, bringing original Spotify podcasts to the streaming video platform starting in 2026.

Additionally, Spotify strengthened its advertising proposition through partnerships with Amazon and Yahoo, providing advertisers using Amazon DSP programmatic access to Spotify’s streaming audio and video inventory. Despite these advertising initiatives, the company reported a 6% decline in advertising revenue, attributed to pricing pressures and podcast inventory optimisation.

Looking ahead to the fourth quarter, Spotify projects revenue of €4.5 billion, representing 6% growth, with operating income expected to reach €620 million. The company anticipates adding 32 million monthly active users to achieve 745 million total users by the end of 2025, alongside 8 million additional premium subscribers reaching 289 million paid accounts.