Spotify announced it now has 300 million Premium subscribers, a 9 percent rise from the prior year, bringing total monthly active users to 777 million, slightly under its forecast. The quarter delivered €4.78 billion in revenue ($5.5 billion) and €545 million in net earnings, with a gross margin of 33.4 percent, an all‑time high.

This margin growth comes from Premium subscriber gains that outpace costs for music, audiobooks and podcasts, while new features such as Reserved, which grants fans early concert ticket access, and an AI tool that creates personal podcasts, enhance user value.

Nevertheless, the service endured two major outages in May and July, each lasting several hours, and faces criticism for allowing AI‑generated “slop” to proliferate despite verification badges and other controls. These outages, coupled with concerns over AI‑generated content, have prompted calls for stronger platform governance.

Apple Music, estimated at roughly 100 million paid subscribers, makes Spotify’s Premium base nearly three times larger, underscoring its market leadership even as the company navigates technical hiccups and content moderation challenges, while also reporting strong growth in its ad‑supported tier that adds to overall revenue momentum. The company also highlighted a 9 percent year‑over‑year increase in total subscribers, reinforcing its growth trajectory despite the recent outages.