Spotify delivered a strong fourth quarter in 2025, achieving one of its best performances to date, with record user growth. The company met or exceeded guidance on all major metrics, reflecting the effectiveness of its focus on product innovation, enhanced creator tools, and improvements to the global user experience.
Spotify added a record number of users in Q4 2025. Monthly Active Users (MAUs) rose 11% year-on-year to 751 million, exceeding both internal and analyst expectations. Premium subscribers grew 10% to 290 million, demonstrating strong conversion and retention despite price changes in several markets.
Growth was driven by gains in Latin America, Europe, and other international markets, along with enhancements to Spotify’s free tier, which has become more important for user acquisition.
Financial performance strengthens
Spotify’s commercial performance continued to grow, with total revenue reaching €4.5 billion, up 13% year-on-year on a constant currency basis. Gross margin increased to 33.1%, up 83 basis points, and operating income rose to €701 million, supported by expanding margins and operational discipline.
The company also celebrated its biggest-ever Spotify Wrapped, with over 300 million users engaging in the year‑end experience and more than 630 million social shares, reinforcing Spotify’s cultural resonance and its ability to drive annual peaks in engagement.
Looking ahead
Spotify is positioning 2026 as its “Year of Raising Ambition,” with increased investment in AI-driven features, creator tools, and new content formats such as audiobooks and music videos. The company projects MAUs will reach 759 million and premium subscribers 293 million in Q1 2026, continuing its double-digit growth in a competitive streaming market.
For retailers and brands, Spotify’s evolution into a multi-format media platform spanning music, podcasts, audiobooks, and video offers more immersive and targeted opportunities for advertising and content partnerships within the subscription economy.
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