Free tools Windows power users keep installed
One-click scans. No signup required.
Spotify’s latest reported quarter, Q2 2026 (released August 4, 2026), was strong on monetization and profitability: 777 million monthly active users, 300 million Premium subscribers, €4.777 billion in revenue, a 33.4% gross margin and €655 million in operating income. The company beat its own subscriber, gross-margin and operating-income targets, while revenue was essentially in line and MAUs came in one million below guidance. Advertising grew far more slowly than Premium, and Spotify’s Q3 outlook calls for 788 million MAUs, 305 million Premium subscribers, €5.0 billion of revenue, 32.9% gross margin and €670 million of operating income.
Spotify Q2 2026 Shareholder Deck
Spotify Q2 2026 earnings at a glance
The quarter shows a business that is still adding users while extracting more value from each paying customer. Premium pricing and mix drove most revenue growth, margins reached a company-described record, and cash generation remained substantial. However, total-user additions slightly missed plan and advertising remained comparatively sluggish.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
|
Google Play gift code | $15.00 | Buy on Amazon |
| 2 |
|
Google Play gift code | $50.00 | Buy on Amazon |
| 3 |
|
$300 Apple Gift Card—Email Delivery | $300.00 | Buy on Amazon |
| 4 |
|
Visa Virtual eGift Card | $28.95 | Buy on Amazon |
| 5 |
|
Google Play Physical Gift Card | $50.00 | Buy on Amazon |
| Metric | Q2 2025 | Q1 2026 | Q2 2026 | Year over year |
|---|---|---|---|---|
| Monthly active users | 696 million | 761 million | 777 million | +12% |
| Premium subscribers | 276 million | 293 million | 300 million | +9% |
| Ad-supported MAUs | 433 million | 483 million | 494 million | +14% |
| Premium revenue | €3.753 billion | €4.148 billion | €4.331 billion | +15% |
| Ad-supported revenue | €440 million | €385 million | €446 million | +1% |
| Total revenue | €4.193 billion | €4.533 billion | €4.777 billion | +14% |
| Gross profit | €1.320 billion | €1.495 billion | €1.596 billion | +21% |
| Gross margin | 31.5% | 33.0% | 33.4% | — |
| Operating income | €406 million | €715 million | €655 million | +61% |
| Free cash flow | €700 million | €824 million | €797 million | +14% |
Sequentially, revenue rose 5% and gross margin increased 40 basis points from Q1. Operating income fell from €715 million to €655 million, and free cash flow declined from €824 million to €797 million, so the year-over-year improvement should not be mistaken for every measure rising quarter to quarter.
Did Spotify beat its own Q2 guidance?
| Metric | Q2 actual | Q2 guidance | Outcome |
|---|---|---|---|
| MAUs | 777 million | 778 million | Slight miss |
| Premium subscribers | 300 million | 299 million | Beat |
| Revenue | €4.777 billion | Approximately €4.8 billion | In line |
| Gross margin | 33.4% | 33.1% | Beat |
| Operating income | €655 million | €630 million | Beat |
Spotify attributed the operating-income upside mainly to stronger gross margin and social charges below its forecast. This comparison is against company guidance, not an independently verified analyst-consensus estimate.
#1 Best Overall
- No returns and no refunds on gift cards. Good for use on the US Google Play Store only. Terms apply - see below.
- Google Play gift codes can be used on the Google Play Store, the official app store for Android, to purchase apps, games, and more.
- New finds, old favorites, one card. Choose a unique gift card design featuring your favorite games or apps. This card can also be used for anything else on Google Play. There’s something for everyone, so find what’s yours. Go Play.
- To redeem, enter code in the Play Store app or play.google.com.
- Easy to use: With a Google Play gift code, you never have to worry about expiration dates or fees.
Revenue: Premium led while advertising lagged
Premium revenue increased 15% year over year to €4.331 billion, or 16% on a constant-currency basis. Premium average revenue per user reached €4.89, up 7%. Spotify said price increases drove the ARPU gain, partly offset by product and market mix. The result means revenue growth reflects both a larger subscriber base and higher monetization per subscriber; it is not solely organic user growth.
Ad-supported revenue rose 1% to €446 million, or 3% on a constant-currency basis. Music advertising benefited from more impressions sold but faced pricing softness. Podcast advertising was helped by sponsorships in Spotify’s owned-and-licensed portfolio, while automated channels remained the largest contributors to overall advertising growth. Advertising grew, but it was not a major Q2 growth engine compared with Premium.
From January 1, 2026, Spotify moved certain revenue-generating activities from the Ad-Supported segment to Premium and recast prior-period figures. Segment comparisons should therefore use Spotify’s recast presentation rather than older, unreclassified numbers.
Rank #2
- No returns and no refunds on gift cards. Good for use on the US Google Play Store only. Terms apply - see below.
- Google Play gift codes can be used on the Google Play Store, the official app store for Android, to purchase apps, games, and more.
- New finds, old favorites, one card. Choose a unique gift card design featuring your favorite games or apps. This card can also be used for anything else on Google Play. There’s something for everyone, so find what’s yours. Go Play.
- Easy to use: With a Google Play gift code, you never have to worry about expiration dates or fees.
- Endless games to explore: Find and play old and new favorites – from mind-bending puzzles to epic quests and more.
Profitability and cash generation
Gross margin reached 33.4%, which Spotify described as an all-time high, versus 31.5% in Q2 2025. Operating margin was 13.7%, compared with 9.7% a year earlier, and operating income rose 61% to €655 million.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Spotify linked gross-margin improvement to Premium revenue growing faster than music costs net of marketplace programs, audiobook and video-podcast cost effects, and favorable podcast and tax impacts in Ad-Supported. Operating expenses increased 3% year over year as reported; excluding currency effects and social charges, they increased 19%, primarily because of marketing, cloud and AI investment.
Social charges create meaningful quarter-to-quarter noise. Q2 included only €1 million, €9 million below forecast, partly because of share-price movements. That benefit should not automatically be treated as recurring operating leverage.
Rank #3
- For all things Apple - products, accessories, apps, games, music, movies, TV shows, iCloud+, and more.
- Perfect for App Store purchases and subscriptions—get apps, games, music, movies, TV shows, and more.
- The perfect gift to say happy birthday, thank you, congratulations, and more.
- Available in $15 - 500, Card delivered via email or SMS
- Use it for purchases at any Apple Store location, on the Apple Store app, apple.com, the App Store, iTunes, Apple Music, Apple TV, Apple News+, Apple Books, Apple Arcade, iCloud+, Fitness+, Apple One, and other Apple properties in US only
Spotify generated €797 million of Q2 free cash flow and €3.3 billion on a trailing-12-month basis. Free cash flow is a non-IFRS measure, defined by Spotify using specified adjustments, and should be considered alongside IFRS cash-flow figures. Net cash flow from operating activities was €816 million, while capital expenditures were €21 million. The company ended the quarter with €9.4 billion in cash, cash equivalents, restricted cash and short-term investments.
Spotify reported approximately €662 million of share repurchases year to date through August 3, 2026. Nearly 2.2 million shares had been repurchased since buybacks resumed in 2025, equivalent to approximately 1% of shares outstanding. Buybacks are capital allocation, separate from the operating performance shown above.
The Tool Desk
Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Users and subscribers
MAUs increased by 16 million during Q2 to 777 million, one million below Spotify’s 17-million target. Premium subscribers rose by 7 million to 300 million, one million ahead of the company’s six-million net-addition guidance. Ad-supported MAUs reached 494 million, up from 483 million in Q1. Spotify reported growth across all regions.
Rank #4
- Visa Virtual eGift Cards are designed for online use only. Gift Cards are subject to Terms and Conditions: a.co/5bw3qXJ
- When you access your Visa Virtual eGift Card for the first time, you’ll need to register your name, address, phone number, and email address via activationspot.com. These details should also be used as your billing address for online purchases, as many merchants require address verification for purchase authorization.
- This Visa Virtual eGift Card is non-reloadable. No cash or ATM access. Visa Virtual eGift Cards are emailed active.
- Funds do not expire but your Visa Virtual eGift Card has a ‘valid thru’ date (9 years from date of purchase). If funds remain after this date has passed, please call the Toll Free number found on your Visa Virtual eGift Card for a replacement card. A one-time purchase fee applies at the time of checkout.
- This item is not eligible for refund, resale, or return. Available for sale within the United States only. Not available to residents of Puerto Rico, Hawaii, New Mexico, South Dakota, West Virginia and the US Virgin Islands.
The combination matters: paid additions exceeded plan even though total MAU additions fell short. That is consistent with improving conversion or monetization, although Spotify did not present a direct conversion-rate measure. Price increases also contributed to ARPU, so investors should watch retention and churn as higher prices work through the base.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Spotify’s Q3 2026 outlook
Management issued the following guidance on August 4, 2026:
| Metric | Q3 2026 guidance | Implied change from Q2 |
|---|---|---|
| MAUs | 788 million | Approximately +11 million |
| Premium subscribers | 305 million | Approximately +5 million |
| Total revenue | €5.0 billion | Higher sequentially |
| Gross margin | 32.9% | Below Q2’s 33.4% |
| Operating income | €670 million | Above Q2’s €655 million |
The outlook assumes an approximately 200-basis-point year-over-year foreign-exchange tailwind based on rates at the end of Q2, and about €9 million of social charges based on Spotify’s Q2 closing share price. It is forward-looking guidance, not a promise; currency, demand, competition, retention, content costs, licensing, regulation, privacy, cybersecurity and macroeconomic conditions can change the outcome.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Best Value
- No returns and no refunds on gift cards. Good for use on the US Google Play Store only. Terms apply - see below.
- Google Play gift cards can be used on the Google Play Store, the official app store for Android, to purchase apps, games, and more.
- To redeem, peel or gently scratch label and enter code in the Play Store app or play.google.com.
- Easy to use: With a Google Play gift card, you never have to worry about expiration dates or fees.
- Endless games to explore: Find and play old and new favorites – from mind-bending puzzles to epic quests and more.
Products that could shape future earnings
Audiobooks and narrated articles
Spotify announced Audiobooks+ add-on tiers, with Family and Student plans expected later in 2026. It also introduced narrated articles from publishers including Rolling Stone, The Atlantic, Vogue, Variety, Billboard and Wired in markets where audiobooks are available. The Q2 materials do not establish a material current-quarter revenue contribution from these products.
AI-powered listening and creation
Personal Podcasts lets listeners generate and schedule AI-powered audio episodes tailored to their interests and listening habits. Studio by Spotify Labs is described as a standalone desktop application for creating personalized audio experiences. These are strategic product initiatives, not reported Q2 revenue drivers.
Fan commerce and concert access
Spotify launched Reserved in the United States, offering selected fans early access to concert tickets. Spotify said nearly 100,000 tickets had been reserved across multiple tours since launch with Live Nation.
Spotify DJ
The DJ feature expanded into French, German, Italian and Brazilian Portuguese. Spotify said DJ had reached nearly 100 million Premium users since its 2023 launch.
What investors should monitor next
- Whether MAU additions stabilize, accelerate or continue to slow against Q3’s approximately 11-million target.
- Whether Premium price increases lift ARPU without materially worsening churn.
- Whether ad-supported revenue begins to grow faster than the 1% reported Q2 rate.
- Whether gross margin stays near or above 33% after Q3’s guided decline to 32.9%.
- Whether audiobook, AI, podcast, video and fan-commerce investments produce incremental monetization.
- Whether marketing, cloud and AI spending limits operating leverage.
- How foreign-exchange movements affect reported versus constant-currency growth.
- Whether share repurchases continue and how they affect share count.
- Whether licensing economics and dependence on third-party music rights holders constrain margins.
For primary materials, use Spotify’s investor-relations financial archive, investor-events page, and the investor homepage. Formal filings are available through SEC EDGAR.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
