Spotify has crossed the 300 million premium subscriber mark for the first time. The company reported the milestone in its Q2 2026 earnings on August 4, adding 7 million net new subscribers during the quarter from 293 million in Q1.
Total monthly active users reached 777 million, up 12% year-over-year and 16 million higher than the previous quarter. Premium subscriber growth beat the company’s own guidance by 1 million.
Financially, Spotify posted total revenue of €4.78 billion ($5.56 billion), a 14% increase year-over-year. Premium revenue accounted for €4.33 billion ($5.04 billion) of that total, up 16% from the same period last year. Ad-supported revenue came in at €446 million ($519 million), growing 3% year-over-year.
The company’s profitability showed even stronger gains. Operating income reached €655 million ($762 million), up 61% year-over-year. Net income stood at €545 million ($634 million), compared to a loss of €86 million in the same quarter of 2025. Gross margin hit an all-time high of 33.4%, and free cash flow reached €797 million ($927 million).
“We have a scale that few companies in history have reached, a business that is healthy and compounding,” said Co-CEO Alex Norström. Co-CEO Gustav Söderström added that Spotify is “still in the very early stages of what is possible.”
Premium monthly average revenue per user rose to €4.89 ($5.69), a 7.4% year-over-year increase driven primarily by price hikes across multiple regions. Europe accounts for 36% of the premium subscriber base, followed by North America at 25%, Latin America at 24%, and the rest of the world at 15%.
Spotify also credited its 20th anniversary campaign with driving nearly 100 million user engagements within the first six days of launch. The campaign produced the platform’s “biggest single day of subscriber intake ever.”
Beyond music, Spotify has expanded into fitness content, narrated magazine articles, concert ticket sales through a Live Nation partnership, and physical books. The company also pushed deeper into AI with personalized podcast generation, audiobook creation tools through an ElevenLabs partnership, and a conversational AI assistant for content curation.
For Q3 2026, Spotify projects 788 million monthly active users, 305 million premium subscribers, total revenue of €5.0 billion, and operating income of €670 million.
