Spotify tops 300 million paid subscribers; Q2 revenue misses expectations, stock closes down 1.57%

Spotify announced its Q2 2026 financial report. Data shows the company’s paid subscribers exceeded 300 million for the first time, with a net increase of 7 million in the quarter; monthly active users (MAU) reached 777 million, up 12% year-over-year. Financially, Spotify’s Q2 revenue was €4.78 billion, rising 14% year-over-year; net profit hit €545 million, with a gross margin of 33.4% — a record high. Operating profit stood at €655 million, beating market expectations of €639.2 million. However, the financial report and Q3 guidance did not fully meet market forecasts. Spotify projects Q3 MAU will reach 788 million, below analysts’ estimate of 793 million; operating profit is expected to be €670 million, lower than the projected €677.8 million, leading the company’s stock to close down 1.57% on Tuesday. Spotify said it is ramping up investments in marketing and AI, with Q2 operating expenses rising 19% year-over-year to €941 million. On the AI front, Spotify has partnered with independent music licensing agency Merlin to expand AI-powered remix, AI cover and other features to over 30,000 independent labels, and plans to launch related tools as paid add-on services. Executives emphasized that AI music products focus on involving real artists in AI creation, rather than generating "fake artists". Still, Spotify faces competitive pressure amid slowing user growth in European and American markets and rising AI music copyright disputes.