Slide 1: Q2 2025 Update
Q2 2025 Update July 29th, 2025
Slide 2: Contents
Executive Summary p.03 Key Highlights p.04 Financial Summary p.06 Table of MAUs & Subscribers p.14 Contents Product & Platform p.17 Outlook p.21 Financial Statements p.24 2
Slide 3: Executive Summary
Executive Summary Our business delivered healthy results in Q2, led by MAU USER & FINANCIAL SUMMARY Q2 2024 Q1 2025 Q2 2025 Y/Y Q/Q and Subscriber outperformance, Y/Y profitability improvement and strong Free Cash Flow* generation. The USERS (M) Total Monthly Active Users ("MAUs") 626 678 696 11% 3%
Slide 4: Key Highlights
Key Highlights Continued double-digit Y/Y Solid revenue growth with Expanding access to growth in MAU and Premium sustained Y/Y profitability audiobooks, voice-activated DJ Subscribers improvement and SAX partner expansion ● MAUs grew 11% Y/Y to 696 million, ● Total Revenue grew 10% Y/Y to €4.2 ● Ex
Slide 5: Key Highlights: Actuals vs. Guidance
Key Highlights: Actuals vs. Guidance Results Q2 2025 Actuals Guidance Monthly Active Users (M) Above 696 689 Users Premium Subscribers (M) Above 276 273 Results Q2 2025 Actuals Guidance Total Revenue (€B)* Below €4.2 €4.3 Financials Gross Margin In-Line 31.5% 31.5% Operating Income (€M)** Below €406
Slide 6: Financial Summary
FINANCIAL SUMMARY
Slide 7: Financial Summary
Financial Summary USER, FINANCIAL & LIQUIDITY SUMMARY Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Y/Y Y/Y FXN* USERS (M) Total Monthly Active Users ("MAUs") 626 640 675 678 696 11% -- Premium Subscribers 246 252 263 268 276 12% -- Ad-Supported MAUs 393 402 425 423 433 10% -- FINANCIALS (€M) Premium 3,35
Slide 8: Financial Summary
Financial Summary Revenue of €4,193 million grew 10% Y/Y in Q2 (or 15% Y/Y constant currency*), reflecting: Revenue ● Premium Revenue growth of 12% Y/Y (or 16% Y/Y constant currency*), driven by subscriber gains and ARPU increases; and ● Ad-Supported Revenue decline of -1% Y/Y (or 5% Y/Y growth cons
Slide 9: Revenue
Revenue Premium growth driven by Subscriber gains Premium Revenue grew 12% Y/Y to €3,740 million (or 16% Y/Y constant currency*), reflecting subscriber growth of 12% Y/Y and a Premium ARPU** decline of -1% Y/Y to €4.57 (or up 3% Y/Y constant currency). Excluding the impact of FX, ARPU performance wa
Slide 10: Gross Margin
Gross Margin Driven by continued improvement across Premium and Ad-Supported segments Gross Margin finished at 31.5% in Q2, up 227 Premium Gross Margin was 33.1% in Q2, up Ad-Supported Gross Margin was 18.3% bps Y/Y. The Y/Y trend was driven by 171 bps Y/Y. The Y/Y trend was driven by in Q2, up 495
Slide 11: Operating Expenses
Operating Expenses Y/Y increases led by payroll and related expenses Operating Expenses increased 8% Y/Y in Q2. Absent the effects of Y/Y movements in currency and Social Charges, the ~5% Y/Y increase in Operating Expenses was driven primarily by an increase in personnel and related costs, professio
Slide 12: Free Cash Flow
Free Cash Flow Record Q2 performance aids balance sheet strength Free Cash Flow* was €700 million in Q2, a record high Q2 as a result of our Net Loss adjusted for non-cash items and improving net working capital. Capital expenditures rose €8 million Y/Y to €10 million due to office build-out/optimiz
Slide 13: Capital Allocation
Capital Allocation Upsizing share repurchase authorization to $2 billion Our approach to capital allocation prioritizes profitable growth while maintaining a balance sheet that can support our long term strategy. To the extent excess capacity arises above these needs, we plan to take our shareholder
Slide 14: MAUs & Subscribers
MAUS & SUBSCRIBERS
Slide 15: Monthly Active Users (MAUs)
Monthly Active Users (MAUs) Total MAUs grew 11% Y/Y to 696 million, up from 678 million last quarter and 7M above our guidance. Quarterly performance reflected: ● Y/Y growth across all regions, with outperformance led by Rest of World, Latin America and Europe ● Successful marketing campaigns in sel
Slide 16: Premium Subscribers
Premium Subscribers Our Premium Subscribers grew 12% Y/Y to 276 million, up from 268 million last quarter and 3 million above guidance. Quarterly performance reflected: ● Y/Y and Q/Q growth across all regions, with outperformance led by Latin America, Europe, North America and Rest of World ● Strong
Slide 17: Product & Platform
PRODUCT & PLATFORM
Slide 18: Music innovation continues to strengthen our ecosystem for creators and listeners
Music innovation continues to strengthen our ecosystem for creators and listeners Launched voice requests for DJ for Expanded AI Playlist to more than 40 new Upcoming Releases hub puts fans first, Premium listeners across 60+ markets where markets including countries in Africa, Asia, Europe helping
Slide 19: Scaling audiobooks through market expansion and add-on subscriptions
Scaling audiobooks through market expansion and add-on subscriptions Rolled out Audiobooks in Premium to 4 Launched two new add-on Audiobooks Audiobooks in Premium have grown rapidly new markets (Germany, Austria, Switzerland subscriptions: Audiobooks+ unlocks 15 extra since launching in 2023, with
Slide 20: Supporting creators, connecting fans and delivering culture-moving moments
Supporting creators, connecting fans and delivering culture-moving moments Celebrated Travis Scott and Miley Cyrus Discover Weekly Turns 10, having spent a decade Launched a limited-edition set of digital with Billions Club Live, featuring Travis helping listeners find their next favorite artist or
Slide 21: Outlook
OUTLOOK
Slide 22: Outlook for Q3'25
Outlook for Q3’25 The following forward-looking statements reflect Spotify’s expectations for Q3 2025 as of July 29, 2025 and are subject to substantial uncertainty. Total MAUs 710 million Implies the addition of approximately 14 million net new MAUs in the quarter Total Premium Subscribers 281 mill
Slide 23: Webcast Information
Webcast Information We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. Daniel Ek, our Founder and Chief Executive Officer, Alex Norström, our Co-President and Chief Business Officer, Gustav Söderström, our Co-President and Chief Product & Technol
Slide 24: Financial Statements
FINANCIAL STATEMENTS
Slide 25: Trending Charts
Trending Charts MAUs, Ad-Supported Users, Premium Subscribers & Revenue By Segment * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
Slide 26: Trending Charts
Trending Charts Gross Profit by Segment, Gross Margin by Segment & Free Cash Flow* * Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information" to be consistent with other slides. Last Twelve Months (LTM) represen
Slide 27: Interim condensed consolidated statement of operations
Interim condensed consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Three months ended June 30, 2025 March 31, 2025 June 30, 2024 Revenue 4,193 4,190 3,807 Cost of revenue 2,873 2,864 2,695 Gross profit 1,320 1,326 1,112 Research and development 415 37
Slide 28: Interim condensed consolidated statement of financial position
Interim condensed consolidated statement of financial position (Unaudited) (in € millions) June 30, 2025 December 31, 2024 Assets Non-current assets Lease right-of-use assets 256 226 Property and equipment 161 188 Goodwill 1,074 1,201 Intangible assets 37 48 Long term investments 2,417 1,635 Restric
Slide 29: Interim condensed consolidated statement of cash flows
Interim condensed consolidated statement of cash flows (Unaudited) (in € millions) Three months ended June 30, 2025 March 31, 2025 June 30, 2024 Operating activities Net (loss)/income (86) 225 274 Adjustments to reconcile net (loss)/income to net cash flows Depreciation of property and equipment 20
Slide 30: Calculation of basic and diluted (loss)/earnings per share
Calculation of basic and diluted (loss)/earnings per share (Unaudited) (in € millions, except share and per share data) Three months ended June 30, 2025 March 31, 2025 June 30, 2024 Basic (loss)/earnings per share Net (loss)/income attributable to owners of the parent (86) 225 274 Shares used in com
Slide 31: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Revenue on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended June 30, 2025 June 30, 2024 IFRS revenue 4,193 3,807 Foreign exchange effect on 2025 revenue using 2024 rates 169 Revenue excluding foreign exchange effe
Slide 32: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Operating expenses on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended June 30, 2025 June 30, 2024 IFRS Operating expenses 914 846 Foreign exchange effect on 2025 operating expenses using 2024 rates 54 Operating e
Slide 33: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Operating income on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended June 30, 2025 June 30, 2024 IFRS operating income 406 266 Foreign exchange effect on 2025 operating income using 2024 rates (7) Operating income
Slide 34: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) Three months ended December March 31, June 30, September December March 31, June 30, September December March 31, June 30, September December March 31, June 30, 31, 2021 2022 2022 30, 2022 31, 2022 2023 2023 30, 20
Slide 35: Appendix
APPENDIX
Slide 36: Social Charges Sensitivity
Social Charges Sensitivity Meaningful movements in our stock price can lead to Social Charge variance Our guidance incorporates the impact of Social Charges, the vast majority of which appear in Operating Expenses. The amount of Social Charges we accrue for and ultimately pay can be volatile, as the
Slide 37: Slide 37