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Spotify's Record User Surge: Wrapped Campaign Wins Big
10 Feb
Summary
- Spotify added 38 million users, setting a quarterly record.
- Operating income surpassed €701 million, with record gross margin.
- AI-powered playlists and music videos enhance user experience.
Spotify Technology SA experienced exceptional growth in the fourth quarter of 2025, adding a record 38 million users. This surge brought the total monthly active users to 751 million, exceeding analyst forecasts. The company's "Wrapped" campaign, a social media sharing initiative, and an enhanced global free tier were key drivers of this success.
Financially, Spotify reported an operating income of €701 million and achieved a record gross margin of 33.1%, indicating improved profitability. Revenue from advertising, however, saw a 4% year-over-year decrease. The company projects 759 million users for the first quarter of 2026.
Under new co-CEOs Gustav Söderström and Alex Norström, Spotify continues its evolution from a music streamer to a broad entertainment hub, now including podcasts, audiobooks, and physical books. Recent innovations include AI-powered prompted playlists and the rollout of music videos in the US, alongside a $13 monthly subscription price in the US.
