Spotify has made a stunning leap in user engagement, adding a remarkable 38 million monthly users in the closing months of last year, largely driven by the excitement surrounding its popular Wrapped feature. This surge has propelled the Swedish streaming giant beyond analysts’ forecasts, signalling a robust demand for audio content and a solid performance during a transitional period for the company.
A New Era for Spotify Leadership
In a significant shift, Spotify’s founder, Daniel Ek, has transitioned from his role as chief executive officer to that of executive chairman. This change comes as Alex Norstrom and Gustav Soderstrom take the reins as co-CEOs, marking a new chapter in Spotify’s journey. Despite this leadership shift, the company has maintained its momentum, showcasing its resilience and adaptability in the competitive streaming landscape.
Impressive Financial Results
Spotify’s financial results for the final quarter of 2025 reflect a solid performance, with revenues climbing 7% year-on-year to reach €4.53 billion (£3.95 billion). This figure also represents a 6% increase from the previous quarter. The company attributes this growth to heightened user activity, with the total number of monthly active users skyrocketing to 751 million—an impressive increase of 76 million compared to the same period last year.
The excitement surrounding the annual Spotify Wrapped feature has played a crucial role in this growth. In 2025, Wrapped engaged over 300 million users, leading to more than 630 million shares across social media platforms. This level of interaction underscores the importance of Wrapped in driving user engagement and retention.
Premium Subscriptions on the Rise
In addition to the influx of new users, Spotify also reported a 10% year-on-year increase in premium subscribers, bringing the total to 290 million. This growth in paid subscribers highlights Spotify’s ability to convert free users into paying customers, a critical aspect of its business model.
Daniel Ek commented on the company’s evolving identity, stating, “Today, what we’ve really built is a technology platform for audio – and increasingly, for all the ways creators connect with audiences. And this identity will matter even more going forward.” He emphasised that upcoming technological advancements, including artificial intelligence and new interactive interfaces, are set to redefine how audiences experience audio and media.
Why it Matters
Spotify’s phenomenal growth reflects not only its successful marketing strategies but also the broader trends in content consumption. As listeners increasingly seek personalised audio experiences, Spotify’s ability to innovate and adapt to user preferences will be crucial. The company’s commitment to enhancing how creators connect with audiences positions it favourably in the ever-evolving media landscape, ensuring it remains a dominant player in the streaming industry.
