spotify

In a historic gain, Spotify saw a record increase of 38 million monthly active users at the end of 2025.

According to the streamer’s fourth-quarter earnings report released Tuesday, the Sweden-based company reported an 11% increase in monthly active users, bringing the total to 751 million. It’s the biggest net add in the company’s history. There was similarly a 10% increase in paid subscribers, rising to 290 million. Spotify’s total revenue also topped $5.3 billion, up 7%.

The company credits much of last quarter’s success to what it says was its biggest Wrapped campaign yet, which engaged 300 million users globally and had 630 million shares in 56 different languages. Spotify also expanded and enhanced tech features globally, like adding music videos and more access to audiobooks, for both premium and free subscribers.

“Today, what we’ve really built is a technology platform for audio — and increasingly, for all the ways creators connect with audiences. And this identity will matter even more going forward,” said Daniel Ek, Spotify’s founder and executive chairman, in a press release.

“The next wave of technology shifts — AI, new interfaces, wearables, new ways of interacting with content — these will reshape how people discover and experience audio and media. The hard problems ahead — in music, in podcasts, in books, in video, in live, and in things we haven’t built yet — we’re going to keep building the technology to solve them.”

The company’s operating income rose 47% to $834 million. At the end of the fourth quarter, there were 7,323 full-time employees globally.

Spotify’s ad-supported revenue was down 4%, with the company looking at a partial “offset by softness in pricing” for its music advertising. Its podcasts’ expansion was led mostly by sponsorships. But the revenue was similarly “offset by optimization of our podcasting inventory.”

Just in the last few months, Spotify has focused heavily on its podcasting services — in part by opening a new Hollywood studio, expanding creator monetization programs and premiering select video podcasts on Netflix in a new partnership.

On the music side, the streaming platform previously reported that it paid out more than $11 billion to the music industry last year. That sum was the “largest annual payment to music from any retailer in history,” according to Spotify.

When the music streaming business model was first introduced, there was controversy about how much artists would earn from streams. But the company said independent artists and labels accounted for half of all royalties.

Founded in 2006, the company maintains a large presence in L.A.’s Arts District. Over the last two decades, it has become the world’s most popular audio streaming subscription service. Beyond its music library, it now reports having more than 530,000 video podcasts and over 500,000 audiobooks in English-language markets.

Starting this month, Spotify also raised its prices for premium users to $12.99. For the first quarter of 2026, the company expects an increase of 8 million monthly active users, bringing its total closer to 759 million users and a smaller, 3-million bump in paying users. The company projects total revenue to stay consistent at around $5.3 billion.

Last year, Spotify paid out more than $11 billion to the music industry, bringing the company’s total payouts since launch to nearly $70 billion.

The milestone year reflected the “largest annual payment to music from any retailer in history,” the company announced on Wednesday in a post. In 2025, Spotify’s payout amount grew by over 10%, making the Sweden-based streamer one of the industry’s main revenue drivers.

“Big, industry-wide numbers can feel abstract, but that growth is showing up in tangible ways,” wrote Charlie Hellman, the company’s new head of music. “Despite rampant misinformation about how streaming is working today, the reality is that this is an era full of more success stories and promise than at any point in history.”

When music streaming was first introduced, there was some controversy about how much artists earn from streams. According to Spotify, independent artists and labels accounted for half of all royalties. Additionally, the company said there are currently more artists earning over $100,000 a year from Spotify alone than were getting stocked on shelves at the height of the compact disc era.

Founded in 2006, the company, with a large presence in L.A.’s Arts District, has become the world’s most popular audio streaming subscription service. The platform offers access to over 100 million tracks, podcasts and audiobooks in over 180 markets.

At the top of the year, founder Daniel Ek moved from his CEO position to become executive chairman. Spotify named two co-CEOs, Gustav Söderström and Alex Norström, in his place.

This month, Spotify raised prices for its premium subscribers in the U.S., bringing the costto $12.99 per month. Hellman disclosed that as Spotify’s audience continues to grow, the higher prices are designed to help with the company’s ongoing expansion. According to the post, Spotify makes up roughly 30% of recorded music revenue and pays out two-thirds of all music revenue to the industry. The other third gets invested back into the company to maintain an “unrivaled listening experience.”

Recently, the streamer has been focused on growing its podcasting division by opening a new recording studio in Hollywood, premiering several shows in partnership with Netflix and expanding its creator monetization program.

Separately, Spotify said it is hoping to counter new developments in AI by reinforcing a human connection between artists and fans. This includes an emphasis on more artist-powered videos, continuing to promote artists’ live shows on the platform and expanding the role of the company’s music curators. The streamer also has plans to crack down on AI-driven artists on the platform.

“AI is being exploited by bad actors to flood streaming services with low-quality slop to game the system and attempt to divert royalties away from authentic artists,” said Hellman. “We’re going to introduce changes to the systems for artist verification, song credits, and protecting artist identity. It’s critical to ensuring listeners and rightsholders can trust who made the music they’re hearing.”