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Swedish music streaming giant Spotify saw its user numbers peak last quarter, driven by its year-end \u201cWrapped\u201d campaign, which rounds up stats and listening highlights for users, and new features on its free tier.<\/p>\n
The company said it saw a record 38 million new users in the fourth quarter, taking its total to 751 million monthly active users, up 11% from a year earlier. Paying subscribers increased by 10% to 290 million in the quarter. <\/p>\n
Spotify said the \u201cWrapped\u201d campaign resulted in more than 300 million engaged users and 630 million shares on social media in 56 languages.<\/p>\n
Revenue came in at \u20ac4.53 billion ($5.39 billion), about 7% more than a year earlier, thanks to an 8% increase in subscription revenue. However, the company\u2019s ad-supported business saw revenue dip by 4% to \u20ac518 million ($616.6 million). Gross margin, an important metric investors watch for indications of improvements to Spotify\u2019s profitability, improved by 83 basis points to a record high of 33.1% as the company sold more ads for podcasts and music.<\/p>\n
The solid performance comes as Spotify\u2019s new co-CEOs Gustav S\u00f6derstr\u00f6m and Alex Norstr\u00f6m take over<\/a> the reins from co-founder Daniel Ek, and they will now oversee a business that has far outgrown what it initially set out to do.<\/p>\n After launching as a music streaming pure-play, Spotify has expanded its remit to include podcasts, audiobooks, and even physical bookstores<\/a>. It\u2019s launched music videos<\/a> within the app as well as video podcasts, and has doubled down on its retention strategy by adding social features like group chats<\/a> and letting users share<\/a> what they\u2019re listening to. You can even use Spotify to book tickets to concerts<\/a>, or explore the story behind songs<\/a>. <\/p>\n The company has also added AI features like an AI DJ<\/a>, AI-generated playlists<\/a>, and now lets users exclude<\/a> tracks from being recommended to help them better tailor what they listen to. <\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tBoston, MA<\/span> Profitability has been a big focus for Spotify in recent years, and the company has tried to achieve that by increasing subscription prices<\/a> in the U.S. and Europe. It\u2019s also added new features<\/a> to its free, ad-supported tier to attract more people away from rivals like YouTube Music and Amazon Music, letting users search for and choose songs they want to listen to.<\/p>\n The company expects to reach 759 million users, and 293 million paying subscribers in the current quarter.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tJune 23, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n