The streaming platform blew past user estimates, lifted profits, and signaled that global demand for audio and premium features is still accelerating
Spotify shares jumped 15% after the music streaming company reported strong user growth and expanded features across newer markets, marking the stock’s best day since 2019.
The company reported earnings per share of 4.43 euros, well above the 2.74 euros expected, while revenue came in at 4.53 billion euros, narrowly beating estimates of 4.52 billion euros. Fourth-quarter revenue increased 7% from a year earlier.
The Swedish firm said monthly active users rose 11% year over year to 751 million, surpassing the 744.7 million analysts surveyed by FactSet had forecast. Paid subscribers climbed 10% to 290 million.
Spotify attributed the gains to growth in Latin America, Europe, and other international markets, along with improvements to its mobile free tier. Co-CEO Alex Norström said the company added more users in the quarter than at any other point in its history.
Ad-supported users also topped expectations, reaching 476 million compared with the 468.9 million projected by StreetAccount.
During the quarter, Spotify launched audiobooks in additional markets, introduced music videos for premium subscribers, and rolled out more artificial intelligence tools.
The company also increased prices for Premium users in the United States, Estonia, and Latvia this month, following earlier U.S. subscription hikes in 2024 and 2023.
Spotify said its 2025 “Spotify Wrapped,” which summarizes listening habits and top songs at the end of the year, was its most successful ever. More than 300 million users interacted with the feature, generating over 630 million shares on social media.
Net income rose to 1.17 billion euros, or 4.43 euros per share, up from 367 million euros, or 1.76 euros per share, in the same period a year ago.
Looking ahead, Spotify expects monthly active users to grow by another 8 million this quarter to 759 million, exceeding a FactSet estimate of 752.4 million. Premium subscribers are forecast to reach 293 million.
The company projects revenue of about 4.5 billion euros and cited a 670 basis point year-over-year headwind from foreign exchange rates. That outlook came in below analysts’ estimate of 4.58 billion euros.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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