Spotify subscriber growth accelerated sharply in the final quarter of the year, helping the streaming giant deliver a dramatic rise in profits after rolling out price increases across major markets.
The company ended December with 751 million monthly active users, adding 38 million users in a single quarter. Meanwhile, paying subscribers climbed to 290 million, up 9 million from the prior quarter.
Both figures exceeded internal forecasts and surprised analysts who had expected more modest gains.
Spotify reported net income of €1.17 billion, more than triple the profit recorded in the same quarter a year earlier. Revenue rose to €4.5 billion, marking a 7% year-on-year increase.
Importantly, the company has steadily raised subscription prices worldwide to improve margins. In the United States, its largest market, the premium subscription fee recently increased to $12.99 per month.
So far, subscriber retention suggests listeners have absorbed the higher costs. However, the latest results do not fully reflect the impact of the newest US price adjustment.
Following the announcement, Spotify shares rose sharply in premarket trading in New York. Investors responded positively to the stronger earnings and user growth momentum.
Nevertheless, the stock remains below its year-ago level, even as broader equity markets have posted gains.
The quarter also marked the first reporting period under Spotify’s new co-chief executives, Alex Norström and Gustav Söderström.
Founder Daniel Ek stepped back from the chief executive role earlier this year to serve as executive chair. The leadership transition comes as the company outlines a renewed focus on operational execution and long-term expansion.
Management described the coming year as one of “accelerated execution,” with ambitions set to rise further in 2026.
Spotify’s pricing moves reflect wider industry pressure. Major record labels have argued that music streaming remains underpriced compared with video streaming services.
Consequently, streaming platforms face mounting calls to adjust pricing structures to reflect inflation and content costs.
For now, Spotify subscriber growth suggests the company has managed to balance higher prices with sustained demand. Whether that balance holds as further price adjustments take effect will shape the company’s next phase of growth.
