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Skip to main content By Georg Szalai, Caitlin Huston November 4, 2025 3:23am Share on Facebook Share to Flipboard Send an Email Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Print the Article Post a Comment Spotify CEO Daniel Ek Courtesy of Spotify Share on Facebook Share to Flipboard Send an Email Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Print the Article Post a Comment Audio streaming giant Spotify posted third-quarter subscriber gains to end September with 281 million paying premium subscribers, up from 276 million as of the end of the second quarter in June. Monthly active users (MAUs) grew to 713 million from 696 million. Management had previously forecast 281 million premium subs and 710 million MAUs. The firm reported an operating profit of €582 million, up 28 percent from the year-ago period, on higher revenue and a 2 percent drop in operating expenses. Revenue of €4.27 billion grew 7 percent, or 12 percent assuming constant currencies, reflecting subscriber gains. But ad-supported revenue declined 6 percent, or flat when assuming constant currencies. The firm also highlighted that “unfavorable currency movements slowed total revenue year-over-year growth.” On the earnings call, executives continued to position 2025 “as a transition year” for the ads business, with growth expected to improve in the back half of 2026. Related Stories Joel Edgerton to Receive Camerimage Acting Honor Series' Women Participants From Across Europe Unveiled Spotify highlighted that in the third quarter, “all KPIs met or exceeded guidance,” concluding: “Overall, we are very pleased with our performance heading into year-end and view the business as well-positioned to deliver growth and improving margins in 2025 as we reinvest to support our long-term potential.” Gross margin was 31.6 percent in the latest period, up over the year-ago quarter. That reflected a “premium decline, driven by video podcast costs, partially offset by revenue growth outpacing music costs net of marketplace programs and audiobook costs,” Spotify said, also noting, “ad-supported gains driven by improved contribution from podcasts and music.” Said Ek, “The business is healthy. We’re shipping faster than ever. And we have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion.” Spotify recently unveiled that founder and CEO Daniel Ek will transition to the role of executive chairman, effective Jan. 1, 2026. Gustav Söderström, co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer, will then serve as its co-CEOs, reporting to Ek. From early 2026, Spotify video podcasts will appear on Netflix under a recently struck partnership. The select podcasts from Spotify Studios and The Ringer initially include The Bill Simmons Podcast, The Zach Lowe Show, The McShay Show, The Rewatchables, Conspiracy Theories and more. The video podcasts will be available on Netflix in the U.S. early next year, with other markets to follow. More titles will become available over time. Asked how this will impact Spotify’s strategy for video consumption on the platform, Ek referred to Spotify as a “distribution hub” for creators, and said that putting videos on YouTube has typically led to greater awareness of the shows and net incremental usage on Spotify. “We believe in being creator first. So what we think is that when the creator wins, we win, and as creators optimize to create their best shows and interviews, which is really what they’re focused on, they wanted to syndicate to everywhere,” Ek said on the earnings call. “And we believe, of course, in helping them to reach audiences in as many places as possible, which is consistent with our core philosophy on being creator first. And also, of course, to help them monetize as much as possible.” Spotify now has close to 500,000 video podcasts shows on the platform, and more than 390 million users have streamed a video podcast on Spotify, which is a 54 percent increase year over year. Additionally, the company says time spent with video content has more than doubled year over year, driven mostly by video podcasts. Asked about a premium super fan tier, which the company has floated in the past, Ek said the company is still working on it. “We keep a very high bar for our products. We simply ship products when they’re ready,” Ek said. “But what I can tell you really is that we are in deep collaboration with most of the relevant rights holders out there.” Ek later added that Spotify is about to conclude another renewal round with all the major record labels, with he called “new, modernized deals,” that have new structures and secure broader videos rights for Spotify, while also working to “better recognize the value that songwriters create across our different offerings.” Spotify also recently inked a ChatGPT deal that allows users to to receive personalized music and podcast recommendations after starting a conversation in ChatGPT, and has announced a partnership with all three major music companies to develop AI music products. “The way we think about this and generative AI for music is that, just as with piracy, we think someone needs to work with the industry and with the artist to make this technology available for them in a legal way, where we don’t ask for forgiveness, and where artists can actually participate and make money,” Söderström said. For the fourth quarter, Spotify expects 745 million monthly active users, an increase of 32 million above the third quarter, and 289 million paying premium subscribers, up eight million. This is slightly below prior year net adds due to the expected churn the company sees when it raises prices. Spotify has “new pricing” in more than 150 markets this year compared to six last year. THR Newsletters Sign up for THR news straight to your inbox every day Representation Podcast Host Shawn French Signs With CAA (Exclusive) Michael Eisner Are You a Studio Exec Who Wants to Be a Thought Leader? 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