Spotify hit 777 million total users and 300 million paid premium subscribers in the past quarter, company executives shared in an earnings release on Tuesday, along with an AI-driven increase in expenses.

Spotify said higher marketing and development costs would hurt its profit in the current quarter as the Swedish music-streaming giant bets heavily on features

The milestone is historic. The margin underneath it is the number to watch.

Spotify forecast third-quarter profit and monthly active users below Wall Street estimates on Tuesday, underscoring the streaming service's challenges in maintaining growth despite expanding its offerings of AI-based features to fend off competition.

The tool will let fans create covers and remixes of songs from participating Merlin members’ artists and songwriters.

Spotify Android performance issues are causing severe app lag and playback stops, pushing frustrated subscribers toward rival services.

Spotify grew its global Premium Subscriber base to 300 million paying users in Q2 (the three months to the end of June). That’s according to the company’s latest financial results (for Q2 2026 ), published on Tuesday (August 4).