Spotify reaches 306 million paid subscribers, shares rise more than 3%
Key Facts
Spotify's paid subscriber count reached 306 million in the third quarter of 2026, according to the company's investor relations data, as it announced results on October 22. The figure exceeded the company's target of 305 million paid subscribers for the period, announced in its previous shareholder disclosure filed with the U.S. Securities and Exchange Commission. The platform's total user base reached 788 million, including paid subscribers, according to its investor relations page. The company's services span 184 markets, according to the same page, as it expands its audio offerings. Spotify shares rose more than 3% in volatile premarket trading on the day of the results announcement, Reuters reported.
Spotify posted third-quarter revenue of 4.97 billion euros, according to Reuters, falling short of analysts' average forecast for the period. Estimates compiled by the London Stock Exchange Group pointed to revenue of about 4.98 billion euros, slightly above the reported figure. Revenue also missed management's previous guidance of 5.0 billion euros in the company's shareholder disclosure. Operating profit reached 672 million euros in the third quarter, according to figures reported by the news agency. That was broadly in line with analysts' average estimate of about 671.8 million euros compiled by Visible Alpha. It exceeded Spotify's previous guidance of 670 million euros, however, with the company beating its operating profit target despite missing its revenue target.
The results follow a second quarter in which paid subscriptions reached 300 million, according to Spotify's statement for that period. The company posted revenue of about 4.8 billion euros at the time, up 14% from the same period a year earlier. On a constant-currency basis, annual revenue growth in that quarter was 15%, according to the same statement. The second-quarter gross margin reached 33.4%, according to figures announced by the company. It also generated operating profit of 655 million euros in the previous quarter, a level surpassed by the third-quarter results, alongside increases in revenue and paid subscribers.
On products, Spotify said in a May announcement that its DJ feature had personalised the listening experience for 94 million paid subscription users. The company expanded the feature's availability to more than 75 markets worldwide, according to the same announcement. The feature allows users to request changes to a listening session by voice or text as part of the platform's listening personalisation tools. In a separate announcement on October 7, the company said: "From now through the end of 2026, we are expanding audiobook availability from 22 markets to more than 180 markets." Listeners in the new markets will have access to a catalogue of more than 350,000 audiobook titles, according to details of the announced plan. The offering includes books in more than 120 languages as part of the geographical expansion the company intends to complete before the end of the year. Eligible subscribers on paid plans receive 12 hours of audiobook listening per month as part of their subscription, under the terms announced by Spotify.
For the fourth quarter of 2026, Spotify expects operating profit of 820 million euros, according to guidance reported by Reuters alongside the results announcement. The target exceeds analysts' average forecast of about 813.4 million euros compiled by the London Stock Exchange Group for the same period. The company also expects paid subscribers to reach 316 million in the fourth quarter, continuing to expand its subscription base. That target is above analysts' estimates of 314.7 million paid subscribers, according to the news agency. Spotify expects monthly active users to reach 818 million in the final quarter of the year. The user target falls short of Visible Alpha's estimate of 819 million, while the operating profit and paid subscription targets exceed analysts' expectations for the coming period.