STOCKHOLM, Sweden (CelebrityAccess) — Spotify announced its financial results for the first fiscal quarter of 2025, revealing record-high operating income and the largest number of new subscribers since Q1 2020.
According to Spotify, the company achieved revenue of €4.2 billion in the first quarter, a 15% increase year-over-year. During the same period, Spotify’s gross margin improved by 400 basis points to 31.6%, with operating income rising to €509 million.
Additionally, Spotify reported a surge in Monthly Active Users to 678 million, up 10% year-over-year, while new subscribers increased by 12% to 268 million.
In Q1, Spotify expanded its podcast partner program to six new markets, including France, Belgium, and Ireland. The company also introduced an automated ad program to simplify the process for advertising partners to purchase and measure campaigns.
Spotify highlighted the launch of the Concerts Near You playlist, which is personalized based on user listening habits. The playlist includes event details, ticket links, and sharing options for fans to notify friends about upcoming shows.
The company also spotlighted its role in the music ecosystem, noting a record payment of $10 billion to the music industry in 2024, with nearly half going to independent labels.
“The underlying data currently reflects strong health: engagement remains high, retention is robust, and our freemium model offers flexibility for users to stay with us even during uncertain times,” said Daniel Ek, Spotify Founder & CEO. “While short-term challenges may arise, we maintain confidence in our long-term trajectory, which is clearer than ever.”
