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Spotify Technology Crosses 300 Million Subscribers — Can Margins Keep Climbing?

Spotify Technology S.A. reported solid results in the second quarter of 2026, demonstrating continued growth across key metrics and launching initiatives aimed at long-term value creation. The company’s revenue rose 15% year-over-year on a constant currency basis, accelerating slightly from the 14% growth reported in the previous quarter. Premium subscriber count exceeded guidance by 1 million, crossing 300 million subscribers globally for the first time, alongside healthy 12% annual growth in monthly active users (MAU) to 777 million. Engagement metrics also improved, with an increase in active days per subscriber. Gross margin expanded to a record 33.4%, supported by operating margin improvement to 13.7%, driven by disciplined operating expense management and efficiency enhancements. Free cash flow grew 14% year-over-year to EUR 797 million. The company’s balance sheet remains strong, with EUR 9.4 billion in cash and no debt aside from lease liabilities, while share repurchases continued, with 2.