Spotify Technology S.A. Q2 2025 Earnings Recap

Spotify reported strong user growth in Q2 2025, achieving over 100 million subscribers in Europe and a 30% increase in net adds compared to the previous year, despite ongoing challenges in scaling their Ads business.

Key Takeaways

• Subscriber growth exceeded expectations, with over 3% of the global population now using Spotify, and healthy conversion rates from free to paid users.
• Q2 2025 marked the second highest MAU net additions quarter to date, indicating strong user engagement and retention.
• The advertising business is underperforming relative to strategic goals, prompting a renewed focus on execution and technology enhancements to drive future growth.
• Spotify remains committed to long-term value creation over short-term results, positioning itself for a target of 1 billion subscribers.