Spotify Tops Premium Subscriber Guidance as Q4 Profit Forecast Rises
Spotify added 6 million net premium subscribers in the third quarter, reaching 306 million and beating its own target. Revenue and earnings per share came in slightly below analyst consensus, while operating income exceeded company expectations. The company projected fourth-quarter operating income of €820 million and continued growth in advertising.
The quarter showed Spotify’s subscriber base continuing to expand: net premium additions reached six million, taking the total to 306 million, ahead of its internal target by one million. Monthly active users climbed 11% year over year to 788 million. Revenue and diluted EPS were slightly under analyst expectations, while operating income rose 15% to €672 million and exceeded company guidance.
Management forecast €820 million in fourth-quarter operating income and further double-digit advertising growth; ad-supported revenue was €482 million, up 10%. It also plans audiobook availability in more than 180 markets by year-end, up from 22, and has repurchased $1.1 billion in stock this year.
Spotify’s stronger subscriber and profit outlook could affect listeners through possible price and feature changes, artists and podcasters through platform investment and discovery tools, and advertisers through expanded ad inventory. Its audiobook and personalization push may broaden access to spoken-word content, while market concentration in audio streaming could shape bargaining power for creators. Investors may see greater confidence in streaming economics, but outcomes depend on execution and competition.