According to Thurrott.com, Spotify lost €72 million on revenues of €4.27 billion in the quarter ending September 30, 2025. The service added 17 million monthly active users, reaching 713 million total with 281 million paid subscribers and 446 million ad-supported users. Premium subscribers grew 12% year-over-year while ad-supported users grew 11%. Co-founder Daniel Ek announced he’ll step down as CEO on January 1, 2026, calling the business “healthy” during his second-to-last quarter. The company launched 30 new products including lossless audio support and OpenAI ChatGPT integration while claiming “profit expansion” despite the actual loss.
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The Art of Financial Storytelling
Here’s the thing about Spotify‘s earnings report – there’s the numbers they want you to focus on, and then there’s reality. They’re talking about “constant currency” revenue growth of 12% when the actual figure is just 1.85%. And they’re citing operating income while ignoring the €72 million bottom-line loss. It’s like ordering an expensive dinner and only telling people about the free bread basket. This isn’t new for Spotify – they’ve always been masters of framing their financial story. But when you’re losing money while hitting 713 million users, you have to wonder when the real profits will actually materialize.
The Engine That Could
Let’s give credit where it’s due – Spotify’s user growth remains absolutely impressive. Adding 17 million MAUs in a single quarter? That’s the kind of growth most companies would kill for. The paid subscriber base hitting 281 million represents solid 12% year-over-year growth. But here’s the catch: premium revenue only grew 9% while ad-supported revenue actually declined 6%. So they’re adding users, but making less money per user in some cases. It’s the classic scaling problem – you’re running faster just to stay in place.
Innovation Versus Profitability
Spotify launched 30 new products last quarter. Thirty! That’s basically a new product every three days. We got lossless audio finally, a revamped Apple TV app, ChatGPT integration, video podcasts on Netflix – the kitchen sink approach to product development. But does throwing everything at the wall actually help the bottom line? All that R&D costs money, and it’s not clear which of these initiatives will actually move the needle financially. It feels like they’re trying to be everything to everyone while still figuring out how to make the core business sustainably profitable.
Ek’s Final Chapter
Daniel Ek stepping down as CEO in January adds another layer to this transitional period. His statement about the business being “healthy” while they’re posting losses feels like legacy management. He’s talking about “eventually the ads turnaround” and “building for the long term” – classic Silicon Valley phrases that basically mean “we’re not making money now, but trust us, we will later.” The timing is interesting though. Is he leaving because the financial pressure is mounting? Or is this a planned transition now that they’ve reached scale? Either way, his successor inherits a company with incredible reach but still searching for sustainable profits. You can check out the full details in their official earnings release and shareholder deck if you want to dive deeper into the numbers.
