Spotify reported outcomes for the primary quarter of 2026 that had been in line or barely forward of expectations throughout all key metrics — gaining 3 million Premium subscribers within the interval to achieve 293 million complete, however its current worth will increase within the U.S.
Whole month-to-month energetic customers (together with each free and paid) climbed 12% yr over yr to 761 million, barely forward of its prior steerage of 759 million.
Spotify’s Q1 income got here in at €4.53 billion, up 8%, pushed by 10% progress in Premium income and offset by an ad-supported income decline of 5%. (Excluding the impression of overseas alternate charges, Spotify mentioned, complete income elevated 15%, Premium income was up 15% and ad-supported gross sales rose 3%.) On a constant-currency foundation, a rise in music promoting was pushed by progress in impressions bought, partially offset by softness in pricing, whereas podcasting advert progress was led by sponsorship good points throughout owned and licensed exhibits.
The corporate’s Q1 gross margin of 33.0% was its second-highest up to now, up from 31.6% a yr prior. Working revenue reached €715 million, up 40%, and free money stream rose 54% to €824 million within the interval. Based on Spotify, the improved gross margin was on account of income progress outpacing prices for music (internet of market applications), audiobooks and video podcasts.
Seemingly placing a damper on Spotify’s Premium progress in Q1: It raised subscription prices in the U.S., its third worth hike in 4 years. The corporate mentioned paid subscriptions within the interval noticed “broad-based regional progress, led by Latin America and Europe.”
Spotify’s outlook for Q2 requires extra strong consumer progress. It’s projecting complete MAUs rising to 778 million (a achieve of 17 million) and Premium subscribers of 299 million (implying the addition of 6 million internet new subscribers within the quarter). The corporate expects complete income of €4.8 billion, which might be up 14.5%; working revenue of €630 million; and working margin of 33.1%.
Alex Norström, co-CEO of Spotify, mentioned in saying the outcomes: “We surpassed 760 million MAU, delivered on the subscriber progress we aimed to attain, and noticed wholesome engagement from present customers, reactivations and new customers alike.” He added, “Because the international rollout of our extra personalised free expertise, customers in key markets just like the U.S. are listening and watching extra days per 30 days. All that reinforces our confidence in sustained consumer and subscriber progress, low churn and continued progress on income and margin.”
Gustav Söderström, Spotify’s different co-CEO, added: “We’re effectively positioned due to our giant, engaged consumer base, deep creator relationships, and years of funding in personalization and infrastructure at scale. Collectively, these create a platform that may benefit from this second and unlock totally new progress vectors that can allow us to climb new mountains beforehand unimaginable. We see important room to develop throughout customers, codecs and engagement and to increase what Spotify is and may turn out to be over time.”
Norström and Söderström assumed the roles of co-CEOs in the beginning of 2026, as founder Daniel Ek stepped aside as CEO to become executive chairman.
Total, Spotify mentioned it now affords about 7 million podcast titles, of which greater than 590,000 are video podcasts. The corporate has 700,000-plus audiobook titles throughout 22 markets. On Monday, Spotify introduced it was launching into the health class, together with a deal with Peloton to license more than 1,400 workout videos for Premium subs.
The corporate paid out $11 billion to the music industry in 2025, up about 10% from the yr prior.
