Spotify reports $99M loss in Q2 despite strong user growth
What's the story
Spotify, the leading audio streaming platform, has reported a net loss of €86 million ($99.5 million) in the second quarter of 2025. This is a sharp contrast to its profit of $274 million during the same period last year. The company's financial performance was adversely affected by higher costs related to employees, professional services, marketing, and "social charges."
User growth
User growth continues for Spotify
Despite the financial setback, Spotify's user base continued to grow. The company added 18 million monthly active users (MAUs) in Q2 2025, taking its total user count to a whopping 696 million. This marks an impressive year-on-year growth of 11%. The increase was mainly due to the company's expansion in Latin America and other regions.
Revenue growth
Subscription revenue sees increase
Spotify's subscription revenue, which makes up the bulk of its total revenue, also saw a 12% year-on-year increase. The company earned €3.74 billion in Q2 2025 from subscriptions alone. However, ad-supported revenues took a slight hit with a 1% decline to €453 million during the same period. Spotify's total revenue for Q2 2025 rose by 10% year-on-year to €4.19 billion.
CEO statement
CEO Ek on product improvements driving engagement
Spotify's CEO Daniel Ek emphasized the importance of product improvements in driving user engagement. He said, "What we're seeing is, the more product improvements we're driving, the better people are engaging." Ek also highlighted that users are spending more time than ever on Spotify due to these enhancements. The company has also expanded its audiobook service and launched new subscription plans in Q2 2025.