Spotify's earnings call for Q2 2025 highlights significant user and subscriber growth, advancements in video and AI-driven user engagement, and a strong financial position. However, challenges in the advertising business, currency impacts, and underperformance in operating income suggest areas needing attention. Overall, while the company shows positive growth and strategic positioning, the mixed performance in certain financial metrics tempers the sentiment.

Company Guidance

During Spotify's Second Quarter 2025 Earnings Call, the company reported significant user growth, achieving over 100 million subscribers in Europe and nearly 700 million total users. Subscriber additions grew by more than 30% compared to the first half of 2024. Despite these gains, the advertising business underperformed expectations due to execution challenges, although programmatic ad strategies show promise for 2026. Gross margins expanded by 230 basis points year-over-year, driven by premium revenue growth. Forecasts for Q3 include a slight underperformance in guidance, with anticipated MAU of 710 million and 281 million subscribers. The company remains focused on long-term growth, aiming to reach 1 billion subscribers by continuing to innovate and enhance user engagement.

Strong User and Subscriber Growth

Spotify saw a 30% increase in net subscriber additions in the first half of 2025 compared to the first half of 2024, reaching over 100 million subscribers in Europe and 696 million MAUs, exceeding guidance by 7 million.

Expansion in Video Content

The platform now hosts over 430,000 video podcasts with video consumption growing 20 times faster than audio-only content since 2024. More than 350 million users have streamed video podcasts, a 65% increase year-over-year.

AI and Product Enhancement

Significant improvements in user engagement with AI features like Spotify DJ, which saw a 45% increase in streams globally. The introduction of generative AI has enabled more personalized and interactive user experiences.

Strong Financial Position

Spotify reported a free cash flow of EUR 700 million for the quarter, with an overall cash and short-term investments totaling EUR 8.4 billion.

Market Leadership in Music Streaming

Spotify holds a 45% subscriber market share and accounts for 65% of global audio music streams, excluding China and Russia.

Spotify (SPOT) Earnings, Revenues Date & History

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SPOT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 28, 2025	2025 (Q3)	2.26 / -	1.686	―	―	―
Jul 29, 2025	2025 (Q2)	2.27 / -0.49	1.546	-131.58% (-2.03)
Apr 29, 2025	2025 (Q1)	2.55 / 1.24	1.128	10.31% (+0.12)
Feb 04, 2025	2024 (Q4)	2.31 / 2.05	-0.419	588.89% (+2.46)
Nov 12, 2024	2024 (Q3)	1.96 / 1.69	0.384	339.39% (+1.30)
Jul 23, 2024	2024 (Q2)	1.22 / 1.55	-1.802	185.81% (+3.35)
Apr 23, 2024	2024 (Q1)	0.73 / 1.13	-1.349	183.62% (+2.48)
Feb 06, 2024	2023 (Q4)	-0.43 / -0.42	-1.628	74.29% (+1.21)
Oct 24, 2023	2023 (Q3)	-0.26 / 0.38	-1.151	133.33% (+1.53)
Jul 25, 2023	2023 (Q2)	-0.73 / -1.80	-0.988	-82.35% (-0.81)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

SPOT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 29, 2025	$700.98	$620.01	-11.55%
Apr 29, 2025	$597.73	$576.94	-3.48%
Feb 04, 2025	$549.08	$621.77	+13.24%
Nov 12, 2024	$410.19	$419.39	+2.24%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.