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Spotify’s Fitness Video Bet Could Become A Powerful ARPU Expansion Lever!

Spotify Technology S.A. reported a solid start to 2026, reflecting steady user growth, improved engagement, and ongoing margin expansion alongside strategic investments in AI and advertising technologies. The company surpassed 760 million monthly active users (MAU), marking a 12% year-over-year increase, and added 3 million net subscribers to reach 293 million paid subscribers, consistent with its guidance. Revenue totaled €4.5 billion for the quarter, growing 14% year-over-year and showing acceleration compared to the previous quarter, driven in part by a 5.7% increase in average revenue per user (ARPU). Gross margin expanded by approximately 133 basis points year-over-year to 33%, with the company delivering its second highest gross margin on record. Spotify’s leadership highlighted progress in evolving its platform through personalization and new AI-powered features, including the popular Spotify DJ and the recently introduced SongDNA, which attracted 52 million users in just four weeks.