Spotify Q3 Subscriber Growth Fuels Profit Surge

Spotify reported a significant jump in paid subscribers for the third quarter. The streaming giant ended September with 281 million Premium subscribers. This marks a solid gain from 276 million in the previous quarter.

Monthly active users also grew, reaching 713 million. The company’s performance met or exceeded its own forecasts. According to Reuters, the results highlight strong operational execution.

Financial Performance Exceeds Expectations

Spotify’s operating profit soared to €582 million. This represents a 28 percent increase compared to the same period last year. Revenue climbed to €4.27 billion, driven by subscriber growth.

Total revenue grew by 7 percent, or 12 percent assuming constant currencies. However, ad-supported revenue saw a slight decline. The company cited unfavorable currency movements as a headwind.

Gross margin improved to 31.6 percent. This was helped by premium revenue growth. Podcast and music contributions also supported the margin expansion.

Strategic Moves and Future Leadership

Looking ahead, Spotify is positioning itself for long-term growth. Founder Daniel Ek will transition to Executive Chairman in 2026. Gustav Söderström and Alex Norström will then serve as co-CEOs.

The company also announced a major partnership with Netflix. Select Spotify video podcasts will appear on the streaming platform starting early next year. This includes popular shows like *The Bill Simmons Podcast* and *The Rewatchables*.

This move aims to expand podcast audience reach. It represents a key step in monetizing Spotify’s significant podcast investments. The deal will initially launch in the U.S. before expanding to other markets.

Spotify’s third-quarter results demonstrate robust financial health and strategic momentum. The consistent subscriber growth and profit expansion signal a strong market position. The streaming service is well-prepared for future innovation and market challenges.

Dropping this nugget your way

How many subscribers did Spotify add in Q3?

Spotify added 5 million net new Premium subscribers in the third quarter. The total reached 281 million. Monthly active users also grew to 713 million.

What was Spotify’s profit for the quarter?

The company reported an operating profit of €582 million. This was a 28 percent year-over-year increase. Higher revenue and lower operating expenses drove this profit surge.

What is the Netflix partnership about?

Select Spotify video podcasts will become available on Netflix. The deal includes shows from Spotify Studios and The Ringer. It begins in the U.S. early next year.

Who will be the new CEOs of Spotify?

Gustav Söderström and Alex Norström will become co-CEOs in 2026. They currently serve as co-presidents. Founder Daniel Ek will transition to Executive Chairman.

Why did ad-supported revenue decline?

Ad-supported revenue fell 6 percent as reported. It was flat when adjusted for constant currencies. The company is working on initiatives to turn this segment around.