This +7 million progress was forward of steerage by 1 million.
Spotify reported that this Premium Subscriber efficiency mirrored “Y/Y and Q/Q progress throughout all areas” plus “robust world promotional marketing campaign consumption”.
Spotify added that Premium progress was “pushed by Q/Q positive factors in Europe, Remainder of World, Latin America and North America”.
“We now have a scale that few corporations in historical past have reached, a enterprise that’s wholesome and compounding, and alternatives solely we’re positioned to pursue.”
Alex Norström
Alex Norström, Co-CEO, stated: “We now have a scale that few corporations in historical past have reached, a enterprise that’s wholesome and compounding, and alternatives solely we’re positioned to pursue. Spotify lives throughout your entire day — the commute, the exercise, learning, gaming, the dinner desk, and sleep. At our scale, that’s uncommon…Our place provides us a chance house as broad as our customers need it to be.”
“We’re nonetheless within the very early phases of what’s potential and can proceed to have a excessive bar for investments.”
Gustav Söderström
Gustav Söderström, Co-CEO, added: “Investor Day described the place we imagine Spotify goes sooner or later. This quarter demonstrated that we’re already constructing that future: higher engineering, sooner delivery, new merchandise and new methods for customers to interact.
“We’re nonetheless within the very early phases of what’s potential and can proceed to have a excessive bar for investments…Our job stays the identical: perceive the expertise early and deeply, and switch it into one thing individuals love. Creating worth for our stakeholders.”
Spotify breaks down its Premium Subscriber base by area inside its investor presentation, reporting that Europe accounted for 36% of its complete Premium Subscriber base as of the top of Q2.
North America accounted for 25% of SPOT’s complete subscriber base in Q2, whereas Latin America accounted for 24% and Remainder of World made up 15%.
Spotify stated the quarter included a particular in-app expertise marking its twentieth anniversary, which almost 100 million customers engaged with in its first six days and which the corporate stated helped drive its “largest single day of subscriber consumption ever”.
Spotify additionally launched Reserved within the US in the course of the quarter, a function it operates with Stay Nation that offers an artist’s most devoted Premium subscribers early entry to live performance tickets.
Month-to-month Energetic Customers
Spotify‘s complete Month-to-month Energetic Customers, which mix paying customers and ad-supported customers, grew 12% YoYto 777 million.
That was up +16 million MAUs from the 761 million reported for the prior quarter (Q1 2026), and 1 million beneath steerage, with Spotify having forecast 778 million MAUs in Q2 (see beneath).
Spotify stated its MAU efficiency in Q2 mirrored “Y/Y and Q/Q progress throughout all areas”, with progress “pushed by Q/Q positive factors in Remainder of World, Europe, North America and Latin America”.
Income
Spotify generated €4.777 billion ($5.56bn) in complete quarterly income in Q2, up 14% YoY, or 15% YoY at fixed foreign money.
Spotify‘s Premium revenues grew 16% YoY at fixed foreign money to €4.331 billion ($5.04bn), pushed by subscriber and ARPU positive factors.
The agency’s Premium month-to-month ARPU stood at €4.89 ($5.69), up 7.4% YoY at fixed foreign money.
Spotify famous in its investor presentation that “excluding the affect of FX, ARPU progress was pushed by value enhance advantages, partially offset by product/market combine”.
Spotify‘s Advert-Supported Income in Q2 was €446 million ($519m), up 3% YoY at fixed foreign money.
The corporate stated its music promoting efficiency was “pushed by progress in impressions bought, partially offset by softness in pricing”, with podcasting progress “led by sponsorship positive factors” inside its Owned & Licensed portfolio.
Profitability
When it comes to profitability, Spotify posted a quarterly working earnings of €655 million ($762m) for Q2.
That was up 61% YoY (59% YoY at fixed foreign money) and down 8% QoQ, however forward of steerage of €630 million as a consequence of Gross Margin power and decrease Social Prices.
The corporate’s Gross Margin completed at 33.4% in Q2, up 193 bps YoY from 31.5% a 12 months earlier, which Spotify described as an all-time excessive.
Working Bills included €1 million in Social Prices on share-based compensation, which the corporate stated was €9 million beneath forecast as a consequence of share value motion in the course of the quarter.
SPOT defined: “Social Prices are payroll taxes related to worker salaries and advantages in choose international locations the place we function.”
“Since a portion of those taxes is tied to the intrinsic worth of share-based compensation awards, actions in our inventory value can result in fluctuations within the taxes we accrue,” Spotify added.
The prior-year interval had included €115 million ($134m) in Social Prices.
On the finish of Q2, Spotify‘s workforce consisted of 7,302 full-time staff globally.
Free Money Move reached €797 million ($927m) in Q2, which Spotify stated was a document for a second quarter, bringing trailing-12-month Free Money Move to €3.3 billion.
The corporate ended Q2 with €9.4 billion in money and money equivalents, restricted money and brief time period investments.
It added that it had repurchased $662 million in shares up to now this 12 months by way of August 3, a 30% enhance over 2025 ranges.
In mixture, Spotify stated it had purchased again almost 2.2 million shares since resuming repurchases in 2025, or round 1% of shares excellent.
Steerage for Q3
When it comes to steerage for Q3, Spotify forecasts reaching 788 million MAUs on the shut of Q3 (the top of September), an addition of round 11 million web new MAUs within the quarter.
The corporate tasks its complete Premium Subscriber base to hit 305 million by the top of Q3, an addition of roughly 5 million web new subscribers.
Spotify additionally forecasts an working earnings of €670 million for Q3, alongside complete quarterly income of €5.0 billion and a Gross Margin of 32.9%.
The corporate stated its Q3 income steerage assumes a foreign-exchange tailwind to YoY progress of round 200 bps, based mostly on foreign money charges as of the Q2 shut.
“Total, we view the enterprise as nicely positioned to ship improved progress and margins in 2026 as we reinvest to help our long-term potential,” Spotify said in its shareholder replace.
All EUR-USD conversions made on the common Q2 2026 change fee printed by the European Central Financial institution.Music Enterprise Worldwide
