Spotify ( (SPOT) ) has released its Q3 earnings. Here is a breakdown of the information Spotify presented to its investors.
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Spotify Technology S.A. is a leading global audio streaming service provider, known for its extensive library of music and podcasts, operating primarily in the technology and entertainment sector. The company is recognized for its innovative approach to music streaming and its commitment to enhancing user experience through continuous product updates.
In its latest earnings report for the third quarter of 2025, Spotify reported strong financial performance, exceeding its own guidance in several key metrics. The company achieved significant growth in both its Premium Subscribers and Monthly Active Users (MAUs), reflecting its robust market presence and effective user acquisition strategies.
Spotify’s total revenue for the quarter reached €4.3 billion, marking a 7% year-over-year increase, or 12% on a constant currency basis. The company saw a 9% growth in Premium revenue, driven by a 12% increase in Premium Subscribers. However, Ad-Supported revenue declined by 6% year-over-year. The company also reported a record high free cash flow of €806 million, underscoring its strong liquidity position.
The company’s operating income rose to €582 million, reflecting a 28% year-over-year increase, supported by improved gross margins and lower operating expenses. Spotify continues to innovate with new product offerings, such as lossless audio and enhanced playlist tools, and has expanded its reach with integrations like Spotify in ChatGPT and new partnerships with Amazon and Yahoo.
Looking ahead, Spotify remains optimistic about its growth prospects, projecting further increases in MAUs and Premium Subscribers in the coming quarter. The company is focused on sustaining its growth momentum and enhancing profitability through strategic investments and product innovations.