Spotify hits a record 751M monthly users thanks to Wrapped, new free features

Spotify reported record user growth in the fourth quarter, with its annual “Wrapped” campaign and expanded free-tier features helping drive engagement to new highs.

The Swedish streaming platform added 38 million users during the quarter, bringing its total monthly active users to 751 million—an 11% increase from the same period last year. Paid subscriptions also climbed, rising 10% to reach 290 million subscribers.

Spotify credited much of the momentum to its year-end “Wrapped” campaign, which compiles personalised listening statistics and highlights for users. The company said more than 300 million people engaged with Wrapped, generating 630 million social media shares across 56 languages.

Financially, Spotify reported revenue of €4.53 billion (approximately $5.39 billion), up 7% year over year. Subscription revenue rose 8%, contributing significantly to overall growth. However, revenue from its ad-supported business declined 4% to €518 million (about $616.6 million). Gross margin improved by 83 basis points to reach a record 33.1%, reflecting stronger ad sales in podcasts and music — a key profitability metric closely monitored by investors.

The results come as new co-CEOs Gustav Söderström and Alex Norström assume leadership, succeeding co-founder Daniel Ek. They now oversee a company that has significantly expanded beyond its original focus.

Initially launched as a pure music-streaming service, Spotify has broadened its offerings to include podcasts, audiobooks, and even physical bookstores. The platform has introduced in-app music videos and video podcasts, while strengthening user retention through social features such as group chats and the ability to share current listening activity. Users can also book concert tickets and explore detailed stories behind songs directly within the app.

The company has continued investing in AI-driven tools, including an AI DJ and AI-generated playlists. It has also introduced options that allow users to exclude specific tracks from recommendations, giving listeners greater control over their experience.

Improving profitability has been a central priority for Spotify in recent years. To support this objective, the company raised subscription prices in markets including the United States and Europe. At the same time, it enhanced its free, ad-supported tier to better compete with rivals such as YouTube Music and Amazon Music, enabling users to search for and select specific songs rather than relying solely on shuffle-based playback.

Looking ahead, Spotify expects to reach 759 million monthly active users and 293 million paid subscribers in the current quarter.