Record number of new users, 200% profit growth! "Online music giant" Spotify "successfully raises prices"

```

The price increase strategy paid off, and Spotify delivered a performance that surprised the market.

On Tuesday, February 10th, global streaming music giant Spotify released its fourth quarter financial report for the period ending December 31st. The data shows that the company’s revenue for the quarter was 4.5 billion euros, a 7% year-over-year increase.

Spotify's net profit in the fourth quarter reached 1.17 billion euros, more than double the 367 million euros from the same period last year. Earnings per share recorded 4.43 euros, far exceeding the analyst average estimate of 2.71 euros according to FactSet.

Spotify achieved explosive growth in profitability through its price increase strategy, while its user base was not harmed and even reached a new high.

As of the end of December, its monthly active users reached 751 million, with 38 million new users added in the quarter—a historic record. Paid subscribers increased by 9 million to 290 million. Both of these key indicators exceeded the company’s internal forecasts.

This performance shows that listeners now accept higher subscription prices. Notably, in its largest market—the U.S.—the latest price hike (from $11.99 to $12.99) only came into effect last month and hasn't yet been reflected in this financial report, hinting that future revenue still has room to grow.

Boosted by the positive financial results, Spotify's share price surged about 15% at the close of trading in New York on Tuesday. Despite a disappointing stock performance over the past year—dropping nearly 30%, while the S&P 500 rose 18%—the stock’s rally after the earnings report indicates a return of market confidence.

CEO: 2026 is “the year of raising ambition”

In recent years, Spotify has implemented price hikes globally to seek profitability, and major record companies have also been pressuring the platform, believing music subscription fees lag behind inflation and are lower than those of video services. The current data on subscriber growth proves the effectiveness of this strategy.

CEO Alex Norström said: “It’s incredible to think that we now serve over three-quarters of a billion people worldwide.”

He called 2025 “the year of accelerating execution” and set 2026 as “the year of raising ambition.”

This is the first quarter under the stewardship of Alex Norström and Gustav Söderström as the new co-CEOs. Co-founder Daniel Ek transitioned to Executive Chairman in January.

Risk disclosure and disclaimerThe market has risks, and investment should be cautious. This article does not constitute personal investment advice, nor does it take into account the individual user’s specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments made accordingly are at your own risk. ```