📉 Spotify Shares Drop 10% After Q2 2025 Earnings Miss

[cryptohog]

Spotify stock fell over 10% on Tuesday after the company released its Q2 2025 financial results, which missed analyst expectations.
🧾 Here’s what happened:

Revenue: €4.19 billion

    €3.74B from Premium subscriptions

    €453M from ad-supported streams

    That’s +10% year-over-year

Net loss: €86 million (€0.42 per share)

    Compared to €274M profit a year ago

    Analysts expected a €1.98 per share profit, per WSJ

Why the dip?

Increased spending on staff and marketing

A €115M charge from “social contributions”

Missed profitability targets, despite strong user growth

User Growth Remains Strong

696 million monthly active users (+11% YoY)

276 million Premium subscribers (+12% YoY)

Audio Beyond Music

Growth driven by podcasts and audiobooks

    Audiobook listening hours in the US, UK, and Australia are up 35%

    Video podcasts are growing 20x faster than audio podcasts

Market Reaction

By 18:00 EST, Spotify shares dropped 10.31% to $628.70

Still, the stock is up over 50% in 2025, per WSJ

️ Daniel Ek, co-founder and CEO of Spotify, has yet to issue detailed commentary, but analysts suggest rising operational costs are dampening Spotify’s strong growth narrative.

[Maxwell]

Strong user growth is impressive, but rising costs and missed profitability targets are dragging Spotify down. It’s a reminder that growth alone isn’t enough without a clear path to sustained profits.

[rafihasan]

Podcast and audiobook growth shows Spotify is diversifying well beyond music, but those investments come at a cost. The key question is how quickly they can turn that spending into consistent earnings.

[Nahiar806]

A 10 percent stock drop after beating user numbers feels harsh, but investors clearly want to see profitability. Spotify’s challenge now is balancing expansion with tighter cost control.