Spotify hauled in 5 million net new Premium subscribers for the first quarter of 2025, its highest Q1 gains in five years, but macroeconomic uncertainty could bring some near-term “noise,” CEO Daniel Ek said.
The audio streaming giant gained 3 million net new monthly active users overall to reach 678 million (in line with guidance) and the 5 million Premium net adds pushed it to 268 million paid subscribers (topping Spotify’s previous expectation for 2 million net new Premium subscribers). That suggests, however, that Spotify saw a slight decrease in users of the free, ad-supported version of its service.
Total Q1 revenue increased 15% to €4.19 billion, in line with prior guidance. Spotify’s operating income doubled to €509 million — a record high, but short of its €548 million forecast. The company’s net profit came in at €225 million, up 14% from €197 million a year prior.
Analysts have warned that in the quarters ahead Spotify’s advertising revenue growth is likely to slow given an anticipated pullback in marketer spending given macroeconomic uncertainty introduced by the Trump administration’s tariffs.
For Q2, the company expects revenue of €4.3 billion (which would be up 13%), operating income of €539 million and gross margin of 31.5%. Spotify’s guidance suggests it anticipates adding 11 million net new MAUs (below Wall Street estimates) and 5 million Premium subscribers (above forecasts) in the June 2025 quarter.
“The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain,” Daniel Ek, Spotify founder and CEO, said in prepared remarks. “So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.”
During the first quarter, Spotify said, it paid out more than $100 million to podcast publishers and creators globally — the first time the company has disclosed the metric. The payout encompassed both ad-based revenue sharing and revenue generated through the recently launched Spotify Partner Program, which pays video-podcast creators based on the amount of time Premium users watch their shows.
Currently Spotify offers about 7 million podcast titles, including 330,000 video podcasts. More than 1 billion users have ever listened to a podcast on the service, according to the company.
The results come after Spotify posted its first full-year profit for 2024. In 2025, Ek said in January, the company would “double down on music in 2025, and I’m personally very excited about that.”
More to come
