Spotify reports quarterly loss as users hit 696M, stock down 11%
Spotify offered a mixed report for Q2 2025. In response, Spotify [NYSE: SPOT] fellas much as 10% in pre-market trading Tuesday. Spotify paid subscribers grew by 8 million to 276 million in Q2 or 12% year on year. Total monthly active users grew 11% to 696 million year on year.
In the first half of 2025, net subscriber additions grew more than 30% compared to the first half of 2024. This marks the company’s second highest Q2 for MAU net additions.
Spotify closed Tuesday at $620.01 down $80.97 or 11.55%. The Dow Index ended the day down just 0.46%.
Spotify Reports Q2 Loss
Despite the solid user growth Spotify did not meet analysts expectations, posting a net loss of $100 million for the second quarter, swinging from a profit during the same period last year. The company was hit by $133 million in social charges mostly from payroll taxes tied to share-based compensation.
Spotify Q2 Highlights
- Subscribers climbed 12% Y/Y to 276 million.
- Monthly Active Users grew 11% Y/Y to 696 million.
- Total Revenue increased 10% Y/Y to €4.2 billion.
- Gross Margin improved by 227 bps YoY to 31.5%.
- Operating Income reached €406M.
Investor Call: Nothing On Superfans
In April, Spotify said “superfan clubs” were coming to the platform. During Tuesday’s Q2 call, the streamer mentioned Superfan plans extended to audiobooks and podcasts, but offered no details or timeline on it’s promised music superfan tier.
The streamer also changed its guidance, saying now that Average Revenue Per User (ARPU) would remain flat in 2025, suggesting no additional revenue from a music Superfan tier.
Also shared during Tuesday’s call:
- Spotify said it has no plans to accelerate subscription price growth despite continued increases at video streamers
- Ad revenue growth remains slower than promised and Spotify again pledged to “move faster” to change that
- Spotify claimed that 3% of the world is now paying for Spotify and renewed its goal to increase paid subscribers almost 4X to 1 billion
- Video engagement mostly from podcasts is growing 20X vs audio
- More advanced AI is being used to create custom playlists
From Spotify:
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, a Berklee College Of Music professor and founder of the Skyline Artists Agency
“Spotify reports quarterly loss as users hit 696M, stock falls 10%” was first published on Hypebot.com
