01:35 PM EDT, 07/29/2025 (MT Newswires) -- Spotify Technology ( SPOT ) on Tuesday issued a third-quarter revenue outlook below Wall Street's expectations after posting an unexpected loss for the prior three-month period amid weak advertising sales.

For the ongoing quarter, the audio streaming company is projecting revenue of 4.2 billion euros ($4.85 billion). Analysts polled by FactSet are looking for 4.47 billion euros. The guidance factors in currency exchange headwind of about 490 basis points to year-on-year topline growth, the company said.

Chief Executive Daniel Ek said he was "unhappy" with the company ads business. Ad revenue fell 1% annually in the second quarter.

"We've simply been moving too slowly, and it's taken longer than expected to see the improvements we initiated to take hold," Ek said on a conference call, according to a FactSet transcript. "It's really an execution challenge, not a problem with the strategy.

"We're working quickly to ensure we're on the right path."

Spotify ( SPOT ) expects to add roughly 14 million net new monthly active users, or MAUs, in the third quarter, bringing the total to 710 million. Premium subscribers are anticipated to increase by about 5 million to 281 million. The expected gains are a step down from 18 million MAU additions and an 8 million increase in its subscriber count in the second quarter.

The Street is looking for 705.8 million MAUs and 279.1 million premium subscribers at the end of the third quarter.

Spotify ( SPOT ) swung to a second-quarter loss of 0.42 euro per share from earnings of 1.33 euros a year earlier. Analysts expected EPS of 1.95 euros. Revenue grew 10% to 4.19 billion euros, below the Street's view of 4.26 billion euros.

Premium revenue jumped 12% to 3.74 billion euros. MAUs reached 696 million, higher than the 689.9 million expected by analysts, while premium subscribers advanced to 276 million, exceeding the 273.7 million consensus.

"Overall, it was a solid quarter, especially when you look at our strong user growth across both subs and MAU," Ek told analysts. "This quarter also marked a huge milestone for us as we hit over 100 million subscribers in Europe, our largest region, and it was our second highest (second quarter) for MAU net additions."

Spotify's ( SPOT ) board on Monday approved a $1 billion increase to the company's existing share repurchase program, doubling the total authorized amount. Of the current $1 billion program, $104 million had been utilized, the company said.

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