Spotify Adds Record Monthly Users and Hits 290 Million Paid Subscribers in Q4, New Co-CEO Says 2026 Will Be ‘Year of Raising Ambition’

Spotify wrapped up 2025 by setting a new benchmark for user expansion, achieving its largest quarterly surge in monthly listeners to date. The platform's global community of monthly active users (MAUs) grew by 38 million in the final quarter, reaching a total of 751 million. Its premium subscription tier demonstrated similar vigor, climbing 10% year-over-year to 290 million paid users, a sequential increase of 9 million.

The company's financial results for the period were equally strong. Fourth-quarter revenue rose to €4.53 billion, a 7% increase that met analyst projections. Profitability saw notable gains, with the gross margin improving to 33.1% and operating income jumping 47% to €701 million. This was fueled by an 8% rise in subscription revenue to €4.01 billion, which helped offset a 4% decline in ad sales. It's worth noting that on a constant-currency basis, advertising revenue actually grew 4%, supported by higher music ad impressions, though pricing pressure persisted. Podcast monetization, a key strategic area, continued to grow primarily via sponsorships.

For the first quarter of 2026, the company anticipates a more measured growth trajectory. It forecasts MAUs rising to 759 million and premium subscribers reaching 293 million, representing net additions of 8 million and 3 million, respectively. This moderated pace for paid users coincides with Spotify implementing its third subscription price hike in four years within the competitive U.S. market. Q1 revenue is projected at approximately €4.5 billion, with an expected gross margin of 32.8% and operating income of €660 million.

The new year also ushered in a significant change in executive leadership. Founder Daniel Ek, who launched the service in Sweden in 2008 and guided its rise to a dominant global audio platform, transitioned from CEO to executive chairman on January 1, 2026. He is succeeded by co-CEOs Gustav Söderström and Alex Norström. Söderström, formerly the chief product and technology officer, is credited with pioneering the platform's user experience and tech infrastructure. Norström, previously the chief business officer, built the company's global monetization and partnership frameworks. In his remarks, Norström declared 2026 as "the Year of Raising Ambition," a follow-up to 2025's focus on execution. He emphasized that this drive is foundational, stating, "Ambition has been the driving force behind our success from our earliest days."

Reflecting on the company's journey, Ek noted Spotify has successfully constructed "a technology platform for audio — and increasingly, for all the ways creators connect with audiences." He pledged to continue tackling "the hard problems ahead," specifically highlighting artificial intelligence and wearables. Söderström elaborated on this tech-centric vision, remarking, "We consider ourselves the R&D department for the music industry... The entire industry stands to benefit from this [AI] paradigm shift but we believe those who embrace this change and move fast, will benefit the most." This focus is critical as AI-driven personalization becomes a major battleground for user engagement among streaming services. Industry analyst Mara Chen of TechSound Insights notes, "Spotify's pivot to a deep tech narrative under its new leadership is a clear signal it views future competition as a battle of algorithms and ecosystem integration, not just content libraries."

Beyond the core financials, Spotify highlighted several key initiatives. Its 2025 "Wrapped" campaign was its most viral yet, sparking over 630 million social media shares from 300 million users. The company also extended its high-profile kit sponsorship of Spain's FC Barcelona through 2030, a move that solidifies its brand in global sports. In a significant claim for the music industry, Spotify reported paying out more than $11 billion in 2025, which it states is the largest annual payment from any single retailer in history, with independent artists and labels receiving half of all royalties. Furthermore, the platform has helped artists generate over $1 billion in ticket sales, underscoring its expanding role in the live event ecosystem.

Innovation in adjacent media verticals remains a priority. Last week, Spotify launched "Page Match," a novel feature that lets users scan a page from a physical or digital book and instantly continue listening to the corresponding audiobook on the app. Looking ahead, a new partnership with Bookshop.org—a platform founded in 2020 to support independent bookstores—will allow users in the U.S. and U.K. to purchase physical books directly within Spotify later this spring. These steps represent a strategic deepening of Spotify's integration into the creator economy, positioning it as a comprehensive hub for audio and related media consumption, far beyond its origins as a music-only service.