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# Spotify reports quarterly loss as users hit 696M, stock down 11%
- URL: https://www.hypebot.com/spotify-reports-q2-loss-as-users-hit-696m-as-stock-falls/
- Published: 2025-07-29T14:32:00.000Z
- Updated: 2025-07-29T22:21:50.000Z
- Description: Spotify offered a mixed report for Q2 2025. In response, Spotify [NYSE: SPOT] fell 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.
- Author: Bruce Houghton
- Tags: Music Business, Music Tech, Streaming, music, music industry, musician, musicians, Spotify, #wp, #wp-post, #Import 2026-01-21 11:15

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](https://www.hypebot.com/spotify-signals-launch-of-superfan-clubs/) to the platform. During Tuesday’s Q2 call, the streamer mentioned [Superfan plans](https://www.hypebot.com/spotify-signals-launch-of-superfan-clubs/) extended to audiobooks and podcasts, but offered no details or timeline on it’s [promised music superfan tier](https://www.hypebot.com/spotify-signals-launch-of-superfan-clubs/).

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:

![](https://storage.ghost.io/c/3a/95/3a957c06-c825-4057-9939-0a274cc16d23/content/images/storage-googleapis-com/pr-newsroom-wp/1/2025/07/2025q2-earnings_full-eng_v4-2.png)

***Bruce Houghton*** *is the Founder and Editor of [Hypebot](https://www.hypebot.com/), a Senior Advisor at [Bandsintown](https://www.bandsintown.com/?ref=hypebot.com), a [Berklee College Of Music](https://online.berklee.edu/courses/touring-101?ref=hypebot.com) professor and founder of the Skyline Artists Agency*

“[Spotify reports quarterly loss as users hit 696M, stock falls 10%](https://www.hypebot.com/spotify-reports-q2-loss-as-users-hit-696m-as-stock-falls/)” was first published on [Hypebot.com](https://www.hypebot.com/)