Spotify’s monthly active users surged to 751 million at the end of 2025, an increase of 38 million and the largest net gain in the company’s history, according to its fourth-quarter earnings report released Tuesday.
The Sweden-based audio streaming service likewise reported a 10% rise in paid subscribers, reaching 290 million. Total revenue for the quarter exceeded $5.3 billion, a 7% increase, with net income reaching approximately $1.4 billion. Shares in Spotify closed at $476.02, marking a nearly 15% increase on Tuesday.
Much of the quarter’s success is attributed to Spotify’s annual “Wrapped” campaign, which tallied user listening activity and engaged 300 million users globally, resulting in 630 million shares across 56 languages. The company also pointed to the expansion of technological features, including the addition of music videos and increased access to audiobooks for both premium and free subscribers.
“Today, what we’ve really built is a technology platform for audio — and increasingly, for all the ways creators connect with audiences,” said Daniel Ek, Spotify’s founder and executive chairman, in a press release. “And this identity will matter even more going forward.”
Ek added that the company anticipates future technological shifts – including advancements in artificial intelligence, new interfaces, wearable technology, and evolving methods of content interaction – will reshape how people discover and experience audio and media. “The hard problems ahead — in music, in podcasts, in books, in video, in live, and in things we haven’t built yet — we’re going to preserve building the technology to solve them,” he stated.
Operating income rose 47% to $834 million. As of the end of the fourth quarter, Spotify employed 7,323 full-time staff globally.
Revenue from Spotify’s ad-supported tier decreased by 4%, partially offset by “softness in pricing” for music advertising. Podcast revenue growth was primarily driven by sponsorships, though also “offset by optimization of our podcasting inventory.”
Spotify has recently increased its focus on podcasting, opening a new Hollywood studio, expanding creator monetization programs, and partnering with Netflix to premiere select video podcasts on the streaming platform.
The company reported paying out more than $11 billion to the music industry in the past year, which it claims is the “largest annual payment to music from any retailer in history.” According to Spotify, independent artists and labels accounted for half of all royalties paid.
Founded in 2006, Spotify has turn into the world’s most popular audio streaming subscription service. The platform now boasts over 530,000 video podcasts and more than 500,000 audiobooks in English-language markets.
Starting this month, Spotify increased prices for its premium subscriptions to $12.99. For the first quarter of 2026, the company projects an additional 8 million monthly active users, bringing the total to approximately 759 million, and a 3-million increase in paying subscribers. Total revenue is projected to remain consistent at around $5.3 billion.
According to Spotify’s Nordic editorial lead, Emma Vikström, Sweden exports the most music per capita globally, with Swedish artists streamed more outside the country than within. The Swedish music scene has been highlighted by Spotify, with artists like Becky and the Birds, Hannes Aitman, ORKID, Sunnan, and Y4ska nominated for the Best New Artist category at the 42nd edition of Sweden’s Grammis awards.
In 2025, the most streamed song in Sweden was “Bara Bada Bastu” by KAJ, achieving streaming records following its performance at Melodifestivalen. Hov1 was named Sweden’s most streamed artist, followed by Veronica Maggio and Yasin. Globally, Lady Gaga and Bruno Mars’ “Die with a smile” was the most streamed song, with Bruno Mars also appearing with “APT.” on the third spot.
