Spotify Beats User Growth Forecast as Monthly Active Users Reach 761 Million

Spotify Reports Strong Premium Growth, Pays $11 Billion to Music Industry

Spotify exceeded guidance for monthly active users in the first quarter, adding 10 million users to reach 761 million, driven largely by strong growth in its ad-supported tier. Ad-supported users rose 14% to 483 million, while premium subscribers increased 9% to 293 million, meeting expectations. The company posted first-quarter revenue of 4.5 billion euros ($5.3 billion), supported by 10% growth in subscriber revenue despite a 5% drop in ad-supported revenue.

Spotify executives said continued user growth in mature markets, including the United States, was supported by increased engagement and personalized features. The company highlighted its large user base, creator partnerships, and long-term investment in personalization and infrastructure as key drivers for future expansion across users, formats, and engagement.

Premium revenue climbed 10% to 4.15 billion euros ($4.87 billion), while ad-supported revenue fell to 385 million euros ($456.6 million). Gross profit rose 13%, with margins reaching 33%. Despite strong results, Spotify shares slipped 4.28% in pre-market trading. The company also noted it paid $11 billion to the music industry in 2025 and $70 billion since its founding.