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Spotify continued its upward trajectory in early 2026, reporting strong subscriber gains and record profitability in its latest quarterly earnings. The company closed Q1 with 293 million Premium subscribers, marking a net increase of three million users compared to the previous quarter and aligning with its internal forecasts.
Growth was driven by steady expansion across multiple regions, with Europe accounting for the largest share of paid users, followed by North America and Latin America. The company also pointed to successful global promotional campaigns as a key factor in attracting new subscribers, alongside continued momentum in emerging markets.
Beyond paid users, Spotify’s overall reach also expanded significantly. Total Monthly Active Users (MAUs), which include both subscribers and ad-supported listeners, rose 12% year-over-year to 761 million, surpassing company guidance.
This growth reflects both new user acquisition and increased engagement, particularly following updates to the platform’s free tier experience.
Financially, Spotify posted €4.53 billion in quarterly revenue, representing a 14% increase year-over-year when adjusted for currency fluctuations.
Subscription revenue remained the primary driver, climbing 15% as the company benefited from both user growth and recent price increases across key markets, including the United States and parts of Europe and Asia.
Ad-supported revenue, however, grew at a slower pace, rising just 3% year-over-year. While advertising impressions increased, pricing pressures weighed on overall performance, highlighting an ongoing gap between user engagement and monetization on the free tier.
Profitability was a standout metric for the quarter. Spotify reported record operating income of €715 million, significantly exceeding expectations and reflecting a combination of improved margins and lower-than-anticipated costs tied to share-based compensation taxes.
Net income reached €721 million, further underscoring the company’s financial momentum.
Looking ahead, Spotify projects continued growth but with slightly more conservative expectations. The company forecasts reaching 299 million Premium subscribers and 778 million MAUs by the end of Q2, alongside revenue of approximately €4.8 billion.
Despite the positive outlook, the guidance fell slightly below analyst expectations, prompting a dip in premarket trading.
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