Shares sing as Spotify beats forecasts, lifts guidance
By Abigail Townsend
Date: Tuesday 04 Nov 2025
(Sharecast News) - Spotify boosted earnings guidance on Tuesday, following an above-forecast spike in users and revenues during the third quarter.
The Swedish streaming giant posted total revenues of €4.27bn in the three months to September end, up 7% year-on-year and narrowly ahead of forecasts.
Operating income was 28% stronger at €582m, boosted by higher prices and cost cutting.
Total monthly active users (MAUs) increased by 17m to 713m, ahead of forecasts for a 14m hike. Premium subscribers rose 12% to 281m.
The firm said: "Overall, we are very pleased with our performance heading into year-end, and view the business as well-positioned to deliver growth and improving margins in 2025."
The group is now targeting total MAUs of 745m in the fourth quarter - above expectations for 737m - and revenues of €4.5bn.
Operating income is expected to come in at €620m, higher than the €618m most analysts had already pencilled in.
As at 1230 GMT, Spotify's New York-listed shares were up 5% in pre-market trading.
Founder and chief executive Daniel Ek - who is moving to an executive chair role from January - said: "The business is healthy.
"It all comes back to user fundamentals and that's where we are: 700m users who keep coming back, engagement at all-time highs. We're building Spotify for the long-term."
Spotify announced in September that its billionaire founder - who set up the business in 2006 - would step back from the day-to-day running of the company to focus on strategy.
Chief product and technology officer Gustav Soderstrom and chief business officer Alex Norstrom will become co-chief executives.
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