Spotify has increased the size of its share repurchase program by an additional USD $1.5 billion.
The company’s Board of Directors approved the increase, which Spotify confirmed in a press release on Thursday (August 20).
With $723 million left under the existing program, the increase raises Spotify‘s total authorization to approximately $2.223 billion.
The program “will run for as long as the shareholders’ authorization to the Board of Directors to repurchase ordinary shares remains in force (including by renewal),” Spotify said.
Spotify said the timing and number of shares it buys back would depend on factors including “the renewal of repurchase authorization by shareholders, price, general business and market conditions, and alternative investment opportunities.”
Repurchases can be made “from time to time using a variety of methods, including open market purchases,” in line with US Securities and Exchange Commission rules, the company said.
The program does not commit Spotify to buying any set number of shares and “may be suspended or discontinued at any time at the Company’s discretion.”
Spotify first launched its buyback program in 2021, when its board approved repurchases of up to $1.0 billion of ordinary shares, following approval from shareholders at a general meeting.
The company added a further $1.0 billion to that authorization in July 2025.
Spotify isn’t the only large-scale music industry player to be buying back its shares.
Universal Music Group launched its first-ever share buyback program, worth €500 million ($575m), in March, and doubled that authorization to €1 billion the following month.
It used €250 million of this expanded authorization in June to buy back shares directly from Bill Ackman‘s Pershing Square, as the fund exited the company after its $64 billion takeover bid was rejected.
UMG completed the original €500 million program in July, having spent €499.2 million buying back its own stock.
Then, in August, it kicked off an additional €250 million ($288m) tranche of the program.
UMG confirmed in April that it would sell half of its Spotify stake, a move expected to generate around $1.4 billion, to help fund its own share buyback program.
According to UMG‘s 2025 annual report, the company held 6,487,000 Spotify shares at the end of that year, equivalent to a 3.10% stake.
Spotify grew its Premium subscriber base by 7 million to 300 million paying users in Q2 2026, and now counts 777 million Monthly Active Users across 184 markets.
Spotify generated total revenue of EUR €4.777 billion ($5.56bn) in the quarter up 14% year-over-year, and posted quarterly operating income of €655 million ($762m).
The firm’s Premium monthly average revenue per user stood at €4.89 ($5.69), up 7.4% year-over-year at constant currency.
Spotify ended Q2 with €9.4 billion in cash, restricted cash, and short-term investments.Music Business Worldwide
Spotify has announced a significant increase to its share repurchase program, boosting it by an additional USD $1.5 billion. The decision was approved by the company’s Board of Directors and was made public via a press release on August 20. With the previous program still having $723 million available, this new increase raises Spotify’s total repurchase authorization to approximately $2.223 billion.
The company stated that the repurchase program will continue as long as it has shareholders’ authorization, which may be renewed in the future. The timing and quantity of shares repurchased will depend on several factors, including shareholder approval for the repurchase, market conditions, share prices, and alternative investment opportunities. Spotify indicated that share buybacks would be conducted in compliance with U.S. Securities and Exchange Commission rules, utilizing various methods such as open market purchases. Notably, the program does not obligate Spotify to buy a specific number of shares and can be paused or stopped at the company’s discretion.
Spotify’s share buyback journey began in 2021 when it first launched a program permitting up to $1 billion in ordinary share repurchases, following shareholder approval during a general meeting. In July 2025, the company enhanced this authorization by an additional $1 billion.
Spotify’s move to repurchase shares is part of a broader trend in the music industry, as other significant players like Universal Music Group (UMG) have also initiated share buyback programs. UMG launched its first-ever share buyback program worth €500 million (approximately $575 million) in March 2026 and subsequently doubled this authorization to €1 billion the following month. By June, UMG had utilized €250 million from its expanded authorization to repurchase shares directly from Bill Ackman’s Pershing Square, as the fund exited after its $64 billion takeover bid was rebuffed. By July, UMG completed its initial €500 million buyback program, spending nearly all of it, and in August, it initiated an additional €250 million tranche.
In a strategic move to fund its share buyback initiative, UMG confirmed in April that it would sell half of its stake in Spotify, which was expected to generate around $1.4 billion. According to UMG’s 2025 annual report, the company owned 6,487,000 Spotify shares at the end of that year, representing a 3.10% stake.
As for Spotify’s recent performance, the company reported a substantial growth in its Premium subscriber base, which increased by 7 million to reach 300 million paying users in Q2 2026. Overall, Spotify recorded 777 million Monthly Active Users across 184 markets. The company’s total revenue for the quarter amounted to €4.777 billion (approximately $5.56 billion), reflecting a 14% year-over-year increase, while its quarterly operating income was €655 million ($762 million). The average monthly revenue per Premium user stood at €4.89 ($5.69), marking a 7.4% year-over-year rise when adjusted for constant currency. As of the end of Q2, Spotify reported holding €9.4 billion in cash, restricted cash, and short-term investments.
In summary, Spotify’s decision to enhance its share repurchase program reflects a commitment to shareholder value. The growth in its Premium subscribers and overall revenue highlights the company’s strong market position in the competitive music streaming industry. With its robust financial standing, Spotify is poised to continue investing in its growth while also returning value to its shareholders through strategic share buybacks.
