The second quarter of 2025 brought mixed earnings for the global music industry. While some companies saw solid growth, investor confidence remained shaky due to cautious forecasts and rising costs.
Overall, the U.S. economy grew 3% in Q2, but a weak jobs report on August 1 raised concerns about long-term stability. Music companies reflected this uncertain climate, posting varied financial results.
Spotify
Spotify beat expectations for subscriber and monthly user growth. However, its stock fell 11.6% after the July 29 report due to weak guidance for the third quarter and lower operating income, affected by currency changes and taxes. Despite strong user numbers, investors were not fully reassured.
Universal Music Group (UMG)
UMG reported 4.5% revenue growth, reaching $3.38 billion. Music subscriptions rose 8.5%, and music publishing jumped 14.5%, helped by Chord Music Partners. But physical music sales and merchandise revenue declined. UMG’s stock dropped 5.2% after the report, with concerns about profit margins and cash flow.
Deezer
Deezer’s revenue stayed flat at €267.1 million ($298.1 million), and total subscribers fell 7.6% to 9.2 million. Subscriptions from B2B deals dropped 21%. Despite the losses, Deezer cut costs and improved its adjusted earnings. The company expects to finish 2025 with positive cash flow and EBITDA.
SiriusXM
SiriusXM saw a 2% drop in revenue, bringing in $2.14 billion. Slower subscriber growth, legal costs, and higher operating expenses were key factors. To attract more users, the company is introducing a $7 subscription plan. CEO Jennifer Witz called the ad market “challenging” but believes their strategy will pay off.
While some companies posted gains, investors showed caution, focusing on long-term profit risks and slower growth signals. More music industry earnings reports are expected in the coming weeks.
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