Spotify stock plummets, despite a rise in revenue and monthly active users.
Revenue from the Swedish audio streamer rose 8% year-over-year in the first quarter to €4.5 billion (A$7.35 billion), while monthly active users rose 12% from the same time last year to 761 million.
Both were slightly above FactSet estimates.
Spotify Co-CEO Alex Norström attributes the growth in monthly users to its new free personalised experience.
“We surpassed 760 million MAU, delivered on the subscriber growth we aimed to achieve, and saw healthy engagement from existing users, reactivations and new users alike,” Norström said.
“Since the global rollout of our more personalised free experience, users in key markets like the U.S. are listening and watching more days per month.”
Premium subscriptions grew by 9% to 293 million, reflecting 3 million quarterly net adds, Spotify said.
This comes as premium subscriptions rose from US$11.99 to $12.99 a month in the U.S.
For the current quarter, the company said it expects to add 17 million net users to reach 7778 monthly active users, and expects to grow premium subscribers by 6 million to 299 million.
While second-quarter MAU guidance was slightly above Wall Street’s expectations, net premium subscribers had been expected to grow to just over 300.4 million, according to analysts polled by FactSet.
Operating income was guided to 630 million euros, which is slightly lower than the 680 million euros expected by FactSet.
The company also said it was the highest-paying retailer globally, paying the music industry more than $11 billion in 2025, bringing its total to nearly $70 billion.
At the time of writing, Spotify (NYSE: SPOT) shares dropped 12.43% to US$434.20. Its market cap is US$89.37 billion.



