Spotify paid users exceed 300 million; Q2 revenue misses expectations; stock drops 1.57%

Huo Xing Finance reports that on August 5, Spotify released its Q2 2026 financial results. Data shows that the company’s paid subscriber base surpassed 300 million for the first time, adding 7 million net new subscribers quarter-over-quarter; monthly active users (MAU) reached 777 million, up 12% year-over-year. Financially, Spotify’s Q2 revenue amounted to €4.78 billion, a 14% year-over-year increase; net profit reached €545 million, with a gross margin of 33.4%, a record high. Operating profit stood at €655 million, exceeding market expectations of €639.2 million. However, the earnings report and Q3 guidance fell slightly short of market forecasts. Spotify expects Q3 MAU to reach 788 million, below analyst expectations of 793 million; operating profit is projected at €670 million, below the expected €677.8 million. The company’s stock closed down 1.57% on Tuesday. Spotify stated it is increasing investment in marketing and AI, with operating expenses rising 19% year-over-year to €941 million in Q2. In AI initiatives, Spotify partnered with independent music licensing agency Merlin to extend AI remixing and AI cover features to over 30,000 independent labels, with plans to offer these tools as paid add-ons. Company executives emphasized that Spotify’s AI music products focus on enabling real artists to participate in AI-driven creation, rather than generating “fake artists.” Nevertheless, Spotify continues to face competitive pressures amid slowing user growth in European and North American markets and escalating copyright disputes surrounding AI-generated music.