Spotify hit the mark on all its key targets in the third quarter of 2026, as the streaming-audio giant packed on 6 million subscribers in the period — to reach 306 million — and saw healthier growth in ad revenue.
\n\nOn the free, ad-supported side, Spotify added a net 11 million monthly active users to stand at 788 million as of the end of September.
\n\nFor Q3, the company reported overall revenue of €4.97 billion, up 16%, “reflecting relatively consistent premium growth and improved ad-supported performance,” it said in announcing the results.
\n\nGross margin of 33.0% slightly exceeded guidance (32.9%) while operating income of €672 million was better than expected “due to lower-than-forecast marketing and personnel-related costs,” the company said. Free cash flow totaled €735 million in Q3, down from €806 million in the year-earlier period.
\n\n“This was a quarter where we did what we said. We’ve built a strong business that keeps compounding, we invest when we see a path for growth, our costs are moderating, and there is more runway ahead,” said Spotify co-CEO Alex Norström in prepared remarks. “Every time we expand what’s on Spotify, we bring in new listeners and give existing ones more reasons to…
Original source: https://variety.com/