•
Mar 31
•/
Spotify Q1 2025 Earnings Report
Spotify delivered strong growth in Q1 2025 with record high Operating Income and strong subscriber gains.
Key Takeaways
Spotify reported a robust Q1 2025, achieving record Operating Income and strong user and subscriber growth despite macroeconomic challenges.
Premium Subscribers grew 12% year-over-year to 268 million.
Monthly Active Users (MAUs) reached 678 million, up 10% year-over-year.
Operating Income rose to €509 million, marking a record high.
Free Cash Flow reached €534 million, the highest Q1 level in company history.
Spotify
Spotify
Spotify Revenue by Segment
Forward Guidance
Spotify expects continued growth in Q2 2025, projecting increases in subscribers and revenue, although foreign exchange headwinds are anticipated to have some impact.
Positive Outlook
- Total Premium Subscribers expected to grow to 273 million.
- Total Revenue expected to rise to €4.3 billion.
- Gross Margin projected at 31.5%.
- Operating Income forecasted to reach €539 million.
- Continued user growth with expected MAUs at 689 million.
Challenges Ahead
- Foreign exchange expected to create a ~170bps headwind on revenue growth.
- Social Charges estimated at €18 million due to share price sensitivity.
- Ad-Supported segment facing pricing softness in certain inventories.
- Macroeconomic uncertainty may affect advertising demand.
- Possible short-term volatility in engagement metrics tied to external factors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income