Spotify closes quarter above expectations

Spotify closed Q3 2025 with a profit above stock market expectations, thanks to strong user growth and price increases in more mature markets. The Swedish music streaming giant increased premium subscription prices and reduced marketing and staffing costs to increase profitability. These are the first results after the announcement in September of the sideways step of the founder and ceo Daniel Ek who from next year will be onlyexecutive chairman.

The Wall Street listed company reached 281 million paying subscribers in the third quarter of the year, up 12% year-on-year, and surpassed 700 million active users. Revenues increased by 7% to EUR 4.3 billion, when expectations stood at EUR 4.2 billion. The revenue trend was driven by growth in paying subscribers despite a decline in advertising revenue. Operating profit reached EUR 582 million.

Audiobook listeners on Spotify increased by 36 per cent and consumption hours grew by 37 per cent in the past year, driven by younger audiences, according to a statement last month, some two years after the product was added to paid subscriptions.

Also in September, the company partnered with OpenAI, the ChatGPT company, to allow users to link their Spotify account to the chatbot and request music recommendations or podcasts through conversational prompts, in an effort to increase user growth and engagement. Spotify expects operating profit of 620 million euros ($723.04 million) in the fourth quarter, higher than analysts' average estimate of 618.6 million euros, according to data compiled by LSEG.

The company expects revenues of EUR 4.5 billion in the fourth quarter, compared to estimates of EUR 4.57 billion. Its quarterly forecast of 745 million monthly active users is higher than the 737.3 million estimate, while its forecast of an 8 million increase in premium subscribers to 289 million is slightly lower than the 290.9 million estimate.