Global music streaming giant Spotify has reported an 11% year-on-year increase in monthly active users (MAUs), reaching 713 million in the third quarter of 2025, surpassing market projections of 710.6 million. The milestone reinforces Spotify’s dominance as the world’s largest audio streaming platform, driven by steady subscription growth and strategic price adjustments.
In August 2025, Spotify raised subscription prices by an average of 9% across multiple regions, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. Despite the hikes, the company recorded continued subscriber growth worldwide, highlighting the platform’s strong value proposition and customer loyalty.
Financial Performance
Spotify’s revenue grew 7% year-on-year to €4.27 billion ($4.9 billion), slightly ahead of analysts’ expectations. Premium subscribers remained roughly in line with forecasts, contributing significantly to overall growth.
The company’s operating income rose 43% year-on-year to €582 million, while net profit surged to €899 million, a major turnaround from the €86 million loss recorded in the same quarter of 2024.
However, ad-supported revenue declined 6% compared to last year, attributed to pricing pressure in the advertising sector.
Spotify shares gained 4.2% in premarket trading on Tuesday following the earnings announcement, reflecting investor confidence in the company’s profitability trajectory.
Leadership Transition
Alongside the earnings report, Spotify announced a major leadership change. CEO Daniel Ek will step down at the start of 2026 to assume the role of executive chairman.
From January 1, 2026, Spotify will adopt a dual CEO structure led by:
- Gustav Söderström, currently Co-President and Chief Product & Technology Officer
- Alex Norström, Co-President and Chief Business Officer
In his statement, Ek expressed optimism about the company’s future, saying:
We have the tools we need: pricing, product innovation, operational leverage, and eventually the ads turnaround to deliver both revenue growth and profit expansion.”
Workforce
At the end of Q3 2025, Spotify reported 7,323 full-time employees worldwide, underscoring its continued investment in global operations and innovation.
