Spotify warned of weaker than expected user growth as profits were hampered by marketing and AI investments. The U.S. streaming firm forecasted that monthly users would reach 788mn next quarter, down from 777mn and below analysts’ 793mn forecast. Operating expenses rose 19 % to €941mn, reflecting “temporary investments” that support future growth. Net income of €545mn on €4.8 bn revenue missed the €587mn forecast, and shares fell over 5 % in pre‑market trading.

The results follow Universal Music Group’s weaker‑than‑expected subscription revenue growth and Warner Music’s 11 % rise in recorded‑music streaming revenue, prompting investors to seek Spotify’s next growth engine amid growing AI concerns. In an investor‑day preview, Spotify highlighted early concert‑ticket access, AI‑powered remix tools and AI‑generated podcasts.

Co‑CEO Gustav Söderström said the company is “already building” the future outlined at the event and that it remains in the very early stages of what is possible, keeping a high bar for investments. Spotify added 7 mn paid subscribers, reaching 300 mn worldwide, and its gross margin widened from 25 % to 33 %. Despite these gains, shares have fallen a third over the past year, underperforming the broader S&P 500.