Spotify delivered a strong second quarter of 2026, reporting revenue of €4.777 billion, up 14 percent year over year, as AI-powered experiences, subscriber growth and higher average revenue per user (ARPU) accelerated its digital business.
The company reached a major milestone of 300 million Premium subscribers, while total monthly active users (MAUs) increased to 777 million, reinforcing Spotify’s leadership in music streaming and digital audio.
Premium subscription revenue increased 15 percent to €4.331 billion, supported by 9 percent growth in Premium subscribers and stronger pricing. Premium ARPU rose 7 percent to €4.89, reflecting price increases across markets. Ad-supported revenue reached €446 million, growing 1 percent, driven by higher advertising impressions, podcast sponsorship gains and expanding automated advertising channels.
Spotify continued to invest in artificial intelligence to strengthen user engagement and monetization. During the quarter, the company introduced Personal Podcasts, allowing Premium users to generate personalized AI-powered audio episodes with monthly credits and optional purchases.
Spotify also expanded its AI-powered DJ feature to French, German, Italian and Brazilian Portuguese, extending a service that has already reached nearly 100 million Premium users since its launch. The company additionally launched Reserved, providing dedicated fans early access to concert tickets, with nearly 100,000 tickets reserved through the platform, and announced new Audiobooks+ subscription tiers.
Total MAUs increased 12 percent to 777 million, while Premium subscribers grew 9 percent to 300 million, exceeding company guidance with 7 million net subscriber additions during the quarter. Ad-supported MAUs rose 14 percent to 494 million, highlighting continued expansion across both subscription and advertising businesses.
Spotify’s profitability also improved. Gross profit climbed 21 percent to €1.596 billion, with gross margin reaching a record 33.4 percent, up 193 basis points year over year. Operating income increased 61 percent to €655 million, while free cash flow reached €797 million.
Spotify increased investments in cloud infrastructure and AI, alongside higher marketing spending, to expand its platform, improve personalization and accelerate long-term digital engagement. These investments are designed to strengthen subscriber growth, advertising performance and AI-powered content discovery while supporting the company’s expansion strategy.