Deezer Posts Positive Net Income for the First Time in Its History
For the first time in its history, Deezer reports a positive net income of 8.5 million euros in 2025. This symbolic breakthrough, however, masks a less glorious reality: the music platform has kept its revenue stable at 534 million euros, only improving due to a drastic reduction in operational expenses. The achieved profitability relies more on financial discipline than on organic growth dynamics.
Financial Turnaround in 2025
The 2025 results mark a financial turning point for the company. Adjusted EBITDA jumped to 9.7 million euros, from a loss of 4 million in 2024, an improvement of 13.7 million euros. Net income turned positive at 8.5 million euros, reversing a net loss of 26 million a year earlier. This transformation is based on two pillars: a slight improvement in adjusted gross margin (from 24.7% to 25.4%) and, more importantly, a 12 million euro reduction in operational expenses. Free cash flow also improved, moving from 6.6 million to 10.1 million euros. Net cash reached 57.4 million euros, providing a comfortable financial cushion.
Stagnant Revenue Despite Regained Profitability
Despite regained profitability, consolidated revenue remains stagnant: 534 million euros in 2025 compared to 541.7 million in 2024, a decline of 0.3% at constant exchange rates. This stagnation hides a contrasted dynamic by segment. The Direct segment grew by 2.8% (at constant exchange rates), driven by an 8.6% increase in subscribers in France, and a 7.7% growth in the rest of the world. However, the Partnerships segment collapsed by 10.3% due to residual effects from the partnership with Mercado Libre. Ancillary revenues (advertising, Sonos Radio) exploded by 20.4%, revealing still underexploited sources of profit. In summary, Deezer has managed to become profitable by reducing costs, not by increasing revenues.
Moderate Ambitions for 2026
For 2026, Deezer announces moderate ambitions. The group expects to maintain its 2025 revenue "while balancing a new phase of selective investments in its key markets and maintaining financial discipline." Adjusted EBITDA and free cash flow are expected to remain positive. The stated priorities rest on three pillars: accelerating the growth of Direct subscribers in France through brand differentiation, building a profitable B2B segment with white-label models, and exploiting the monetization of its AI-generated music detection technology. This approach reveals a company aware of its limitations: rather than aiming for aggressive expansion, Deezer seeks to consolidate and diversify its revenue sources by leveraging its technological advantages (ACPS with 85% of partners integrated, AI detection monetizing 85% of fraudulent streams).
