The Swedish audio streaming giant reported an 11% year-over-year increase in monthly active users during its latest quarter to 751 million, exceeding expectations.
Spotify shares rose more than 19% on Tuesday after the audio streaming platform reported better-than-expected earnings, which included a record increase in monthly active users, citing its best-ever “Spotify Wrapped.”
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Spotify shares rose 19.1% to around $494 shortly after opening trading on Tuesday, marking the biggest intraday gain in the stock’s history.
Spotify advertisement on Tuesday quarterly revenue of 4.53 billion euros ($5.39 billion) and earnings per share of 4.43 euros ($5.27), beating Wall Street estimates of 4.52 billion euros ($5.38 billion) and 2.75 euros per share ($3.27), according to FactSet.
The Swedish audio streaming giant reported an 11% year-over-year increase in monthly active users during its latest quarter to 751 million, beating expectations of 744.7 million after an increase of 38 million, the most Spotify has ever added in a quarter, according to co-CEO Alex Norström.
That surge is attributed to “Spotify Wrapped,” the company said, which became its most successful year-end feature yet after more than 300 million users interacted with it and garnered more than 630 million shares on social media.
Analysts at Cantor Fitzgerald, Bank of America and Bernstein raised their price target on Spotify shares, citing the company’s strong revenue performance and success amid broader market volatility.
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Almost 28%. That was how far Spotify stock had fallen in the year leading up to Tuesday’s rally, falling from $575 at the start of the year to $414.84 on Monday.
Apple Music, meanwhile, had “the best year in its history” in 2025
Last month, Apple reported that Apple Music reached all-time highs in audience and new subscribers, although the company did not provide numbers for subscribers or monthly active users. Apple Music had its best year in 2025, according to Apple, which reported last time 60 million paying subscribers for the audio streaming service in 2019. This is only the second time Apple has revealed Apple Music’s subscriber total, after announce 11 million in February 2016.
Key background
Spotify, founded in 2006 by Daniel Ek and Martin Lorentzon, has appreciated rapidly in recent years after falling to a market capitalization of about $15 billion in 2022. The company, valued at more than $120.3 billion last year, has expanded into audiobooks and podcasts, and Ek stated in 2024 that users should “expect to see many more versions.” of Spotify in the future” as the company competes with Apple Music. Spotify reported its first full year of profitability in 2024 following its second round of subscription price hikes in the US and with a 12% increase in monthly active users in the strongest fourth quarter in the company’s history.
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Ek had an estimated net worth of $6.4 billion as of Tuesday, ranking him the 627th richest person in the world. Ek stepped down as CEO of Spotify in September and became executive chairman. The company stated that Ek will “more accurately reflect the structure of a European presidency,” as he will determine capital allocation, “plan Spotify’s long-term future, and continue to provide support and guidance to its management team.”
This article was originally published in Forbes US
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date: 2026-02-11 04:11:00