Spotify Forecasts Fourth-Quarter Profit Above Estimates on AI Bets
- On Thursday, Spotify reported third-quarter revenue of €4.97 billion, narrowly missing LSEG estimates of €4.98 billion, though operating income reached €672 million.
- Premium subscribers grew to 306 million with 6 million net new additions exceeding earlier guidance, helping drive double-digit increases in revenue and operating income.
- Monthly active users rose to 788 million, supported by AI-powered features like the AI DJ and prompt-based playlists that curate personalized music mixes.
- For the fourth quarter, Spotify predicts €5.2 billion in revenue and 316 million premium subscribers, with operating income forecast at €820 million for the holiday season.
- Co-CEO Alex Norstrom said the company has "built a strong business that keeps compounding," despite operating expenses rising 26% from marketing and cloud/AI spending initiatives.
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Spotify subscribers reach 306 million as it rolls out new features
Spotify ended the third quarter with 306 million paying subscribers, up 9% from a year earlier, according to its third-quarter update, published on Thursday. Monthly active users rose 11% to 788 million. Revenue grew 16% to €4.97 billion, or 14% at constant exchange rates. Spotify subscribers grew by 6 million in the quarter, a million […] This story continues at The Next Web
The Spotify registered a profit of 518 million euros in the third quarter, falling by 42.4% in the annual comparison. The music streaming platform had revenues of 4.97 billion euros between July and September, growth of 16.3% over the same period of 2025. Our businesses had a good performance in the third quarter, with all the metrics we follow reaching or surpassing the goals, say Alex Norström and Gustav Söderström, Co-Directors-Presidents of …
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