Spotify tops 300 million paid subscribers, but Q2 revenue and Q3 outlook miss expectations

Spotify reported its second-quarter 2026 results, with paid subscribers rising above 300 million for the first time after adding 7 million net subscribers in the quarter. Monthly active users reached 777 million, up 12% from a year earlier. Revenue came in at 4.78 billion euros, up 14% year over year, while net profit was 545 million euros. Gross margin hit a record 33.4%, and operating income of 655 million euros came in above the market expectation of 639.2 million euros. Still, the overall report and the company’s guidance for the third quarter fell short of market expectations in key areas. Spotify said it expects Q3 monthly active users to reach 788 million, below analysts’ estimate of 793 million. It also forecast operating income of 670 million euros, under the expected 677.8 million euros. Shares closed down 1.57% on Tuesday. The company said it is stepping up spending on marketing and AI, with second-quarter operating expenses rising 19% year over year to 941 million euros. Spotify also said it has partnered with independent music licensing agency Merlin to expand AI remixing and AI cover tools to more than 30,000 independent labels, with plans to launch the tools as paid add-on services.