The world’s largest streaming platform Spotify has reported its third quarter earnings today, reporting that it now has 700 million monthly active users. The CEO, Daniel Ek, said that the business is healthy and it has hit its Q3 revenue and subscriber targets. The Swedish business said that it has been focused on Accelerated Execution by launching new updates and features across music, podcasts, and audiobooks adding value for users and creators around the world.
Spotify’s focus on Accelerate Execution has allowed it to achieve double-digit growth in both users and revenue, alongside a significant expansion in profit. Its total revenue increased by 12% year-over-year to €4.3 billion which is about €100 million above the Q2 2025 results. Its gross margin rose to 31.6%, an improvement of 56 bps year-over-year. The company’s reported operating income reached €582 million, signaling the business’s success in operational leverage.
The streaming company’s monthly active users grew 11% year-over-year to 713 million, passing 700 million for the first time. Premium subscribers also grew by 12% year-over-year to 281 million.
Core product enhancements that the company highlighted include Spotify integration in ChatGPT which lets you receive personalized music and podcast recommendations, improving discoverability. It has also introduced in-app messaging to increase content discovery and user stickiness and it has made Lossless Audio available for Premium subscribers.
The firm said it also loosened free-tier restrictions to increase engagement and future conversion. The new updates, available globally, allow users to search and play any song as well as jump straight to a song friends have shared.
Looking forward, Spotify said its Q4 targets include reaching 745 million monthly active users, 289 million Premium subscribers, revenue hitting €4.5 billion, and operating income reaching €620 million.