STOCKHOLM: Spotify announced robust financial results for the first quarter of 2025, showcasing significant growth in both premium users and revenue. The streaming giant reported its highest net increase in premium subscribers for a first quarter since 2020, highlighting strong operational performance.

The number of premium users surged by 12% year-over-year, reaching 268 million. Meanwhile, monthly active users increased by 10% from the previous year, totaling 678 million.

Spotify's total revenue rose by 15% compared to the prior year, amounting to 4.2 billion euros. The company's gross margin improved by 400 basis points to 31.6%.

Operating profit for the quarter reached 509 million euros, marking a significant improvement. Founder and CEO Daniel Ek noted the positive underlying data, emphasizing high user engagement and retention.

Ek attributed the company's success in part to its freemium model, which he said provides users with flexibility during uncertain times. He expressed confidence in Spotify's long-term growth trajectory and strategic direction.