Spotify Q3 2025 revenue rises as users, subscribers grow

Spotify reported Q3 2025 results with 713 million monthly active users, up 11% year-on-year.

Paid subscribers rose 12% to 281 million, while revenue for the quarter reached €4.3 billion (US$4.9 billion), a 12% rise in constant currency terms.

Gross margin improved to 31.6%, and operating income hit €582 million (US$668.7 million).

The company launched new features across music, podcasts, and audiobooks.

CEO Daniel Ek said Spotify is focused on driving both revenue and profit growth.

🔗 Source: Spotify

🧠 Food for thought

Implications, context, and why it matters.

Spotify reached 281 million subscribers, up 12% year over year 1. Premium average revenue per user (ARPU) held at €4.53 in constant currency, which excludes exchange rate effects 2.
Gross margin reached 31.6%, up 50 basis points or 0.5 percentage points 2. Subscription, or Premium, faces pressure as content cost allocation tied to podcasts weighs on margins 1. Ad supported revenue was flat in constant currency 2 while monthly active users (MAUs) rose 11% to 713 million 2.
After price increases in over 150 markets, Spotify expects more subscriber churn, or cancellations 1. Guidance says a sequential, or quarter over quarter, gross margin dip in Q1 2026 due to advertising seasonality 1.

Advertisers and app marketers can access 713 million MAUs 2, with engagement lifted by the upgraded free tier 2. Spotify now sits among the largest global audio destinations 3 for campaigns across music and podcasts plus video and audiobooks.
Ad supported revenue was flat in constant currency 2. Marketers should track Q4, or fourth quarter, CPM trends. CPM means cost per thousand impressions. Self serve ad buying tools vary by market, where advertisers can purchase ads directly without a sales rep.
Netflix joined Spotify on video podcasts 1, which creates new ways for creators to earn that advertisers can use through branded content or sponsorships. Spotify also ships AI features like ChatGPT integration 1 that improve personalization and discovery.