Spotify has unveiled its second-quarter financial results, and while the platform saw a rise in users, it saw a net financial loss overall.
During April, May, and June, Spotify lost 86 million euros, which converts to $99 million USD. The company pointed to higher personnel, professional services, and marketing costs as reason for the decline.
Additionally, it said it had “social charges” — namely, high payroll taxes as the price of the company’s stock increased — of more than $130 million.
That net loss of $99 million pales in comparison to the second quarter of 2024, when Spotify featured a profit of more than $315 million.
Overall, the platform’s revenue rose 10% to $483 billion, an uptick of 12% in its premium revenue category.
Spotify saw its monthly active user base grow by 11% during the quarter. It now features just under 700 million monthly active users. It said that the increase could be attributed to growth in Latin America and Europe among other global markets.
“It’s taken longer than expected to see the improvements we initiated to take hold,” Spotify CEO Daniel Ek said during the company’s earnings call. “It’s really an execution challenge, not a problem with the strategy, and while I’m unhappy with where we are today, I remain confident in the ambitions we laid out for this business.”
Barrett Media produces daily content on the music, news, and sports media industries. To stay updated, sign up for our newsletters and get the latest information delivered straight to your inbox.
