Global music streaming giant Spotify has crossed a major milestone, reaching 713 million monthly active users in the third quarter of 2025 — an 11% year-on-year increase and slightly above projections of 710.6 million. The growth was largely driven by rising subscriptions despite recent price hikes across key markets.
In August, Spotify increased subscription prices by around 9% in multiple regions including South Asia, the Middle East, Africa, Europe, Latin America, and Asia-Pacific. Yet, subscriber growth remained strong, underscoring the platform’s deep global reach and customer loyalty.
Revenue rose 7% to €4.27 billion ($4.9 billion), while premium subscriber numbers remained roughly in line with estimates. The company’s operating income climbed 43% year-on-year to €582 million, and it reported a net profit of €899 million — a sharp turnaround from the €86 million loss in the same quarter of 2024.
Spotify’s shares rose 4.2% in premarket trading following the announcement, signaling investor confidence in the company’s growth trajectory. However, the streaming giant noted a 6% decline in ad-supported revenue, citing pricing pressures in the advertising sector.
“We have the tools we need — pricing, product innovation, operational leverage, and eventually the ads turnaround — to deliver both revenue growth and profit expansion,”
— Daniel Ek, CEO, Spotify
Leadership Transition
As part of a major leadership reshuffle, Spotify announced that Daniel Ek will step down as CEO in early 2026 to become Executive Chairman. Starting January 1, 2026, the company will transition to a dual-CEO structure led by Gustav Söderström (currently Co-President and Chief Product & Technology Officer) and Alex Norström (Co-President and Chief Business Officer).
Spotify closed the quarter with 7,323 full-time employees worldwide.
Expanding the Ad Ecosystem
In October, Spotify unveiled a major expansion of its automated advertising ecosystem, partnering with Amazon DSP to give advertisers access to Spotify’s global audio and video inventory. The collaboration merges Amazon’s audience insights with Spotify’s vast user base — now nearing 700 million monthly users — offering more precise targeting and enhanced attribution for advertisers.
Spotify also strengthened its programmatic advertising capabilities through direct integrations with Yahoo DSP and ID5. Early data from the Yahoo partnership shows conversion rates up nearly 70% and cost per action down 90% between July and September 2025. Meanwhile, the ID5 partnership improves audience addressability across Europe, supporting more privacy-conscious targeting.
Looking ahead, Spotify plans to roll out new monetization tools for podcast publishers on Megaphone starting in 2026. The update will allow creators to set up private marketplace deals through the Spotify Ad Exchange, giving them more flexibility and control over advertiser relationships.
With a record-breaking user base, rising profitability, and a growing ad ecosystem, Spotify’s Q3 results mark a pivotal moment in its evolution from a streaming platform to a comprehensive global audio marketplace.
