US EditionSpotify User Base Grows, But Profitability Concerns Linger - Spotify Technology (NYSE:SPOT)
SWEDEN, JUL 29 – Spotify's monthly active users grew 11% year-over-year to 696 million, but losses returned due to €116 million in social charges and higher payroll costs tied to share price gains.
- Spotify released its second-quarter 2025 earnings showing a loss per share and mixed financial results, leading to an 8% stock decline on Tuesday.
- The results stemmed from slower than expected growth in the ads business, higher social charges linked to share price appreciation, and unfavorable currency movements.
- Despite the loss, Spotify's monthly active users grew 11% year-over-year to 696 million, while premium subscribers increased 12% to 276 million, both exceeding forecasts.
- Gross margin expanded to 31.5%, reflecting 227 basis points of year-over-year growth, while operating income reached €406 million but missed guidance due to social charges and payroll costs.
- CEO Daniel Ek acknowledged near-term challenges but reaffirmed confidence in long-term value creation, highlighting that 2025 is expected to be a standout year for Spotify.
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Spotify Swings to a Second-Quarter Loss
Spotify Technology SA swung to a loss in the second quarter, missing analysts’ estimates after the music-streaming service recorded higher-than-expected expenses related to employee compensation. Earnings dropped to a loss of 42 euro cents per share, the company said in a statement Tuesday, missing analysts projections for a profit of €1.97. Revenue increased about 10% to €4.19 billion ($4.8 billion), compared with Wall Street estimates of €4.27…
·United States
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Spotify User Base Grows, But Profitability Concerns Linger - Spotify Technology (NYSE:SPOT)
Spotify's Q3 2025 financial results disappoint investors despite strong user growth and improved profitability. Stock price declines after earnings miss and conservative outlook.
·New York, United States
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Leaning Left2Leaning Right2Center2Last UpdatedBias Distribution33% Left, 33% Center, 33% Right
Bias Distribution
- 33% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
33% Right
L 33%
C 33%
R 33%
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