Spotify Surpasses 300 Million Paid Users, Q2 Revenue of €4.78 Billion Falls Short of Expectations, Stock Price Drops 1.57%

On August 5, Spotify announced its Q2 2026 financial results, revealing that paid subscribers have surpassed 300 million for the first time, with a net increase of 7 million in the quarter. Monthly active users (MAU) reached 777 million, a year-on-year increase of 12%. Q2 revenue was €4.78 billion, up 14% year-on-year; net profit was €545 million, with a gross margin of 33.4%, setting a new historical high. Operating profit was €655 million, exceeding market expectations of €639.2 million. However, the financial report and Q3 guidance did not fully meet market expectations. Spotify expects Q3 monthly active users to reach 788 million, below analysts' expectations of 793 million; operating profit is projected at €670 million, lower than the expected €677.8 million, leading to a 1.57% drop in stock price on Tuesday. Spotify stated it will increase investments in marketing and AI, with Q2 operating expenses rising 19% year-on-year to €941 million. The company has partnered with independent music licensing agency Merlin to extend AI mixing and AI cover functionalities to over 30,000 independent labels, planning to launch related tools as paid add-on services. Executives noted that the focus of AI music products is to involve real artists in AI creation, facing competitive pressures from slowing user growth in the US and Europe and disputes over AI music copyrights.