Spotify Shares Plunge After Surprise Q2 Loss Despite User Growth

Spotify's stock tumbled 11.5% as the streaming giant reported an unexpected quarterly loss of €0.42 per share, defying analyst expectations of a €2.02 profit. This marks the company's fourth consecutive earnings miss and its first loss in 18 months.

While monthly active users grew 11% year-over-year and operating profits surged 53% to €406 million, Spotify failed to meet its own revenue forecast of €4.3 billion, delivering only €4.2 billion. Operating income came in 25% below guidance at €539 million.

The company's conservative Q3 outlook—projecting flat revenue of €4.2 billion—suggests a strategic pivot toward underpromising after repeated forecasting failures. This earnings disappointment underscores the market's intolerance for missed targets, even amid otherwise strong growth metrics.