Despite adding over 8 million premium subscribers, Spotify ended Q2 2025 at a loss
Subscriber growth wasn’t enough to turn a profit as costs rose faster than revenue.
Spotify just posted its strongest subscriber growth yet, adding millions of new listeners and expanding engagement across its platform. But that surge wasn’t enough to turn a profit as costs rose faster than revenue.
The company reported a net loss of €86 million, a sharp turn from the €225 million profit it earned during the same period last year. It also missed revenue targets, even though revenue rose 10% to €4.19 billion.
It's a perplexing scenario for a company otherwise hitting all the right notes on growth metrics. User growth was strong across the board. Spotify added 8 million premium subscribers, bringing the total to 276 million. Overall, monthly active users climbed to 696 million, as the Techloy chart below shows. Both figures beat internal projections, and premium revenue jumped 12%.
On paper, it was a blockbuster quarter for growth. But the company still ended up in the red, and investors didn’t take it lightly. Shares sank more than 11% on Tuesday, marking Spotify’s worst trading day in over a year. This is back backtrack for a company that only recently managed to achieve profitability.
