Spotify reported a second-quarter net loss of €86 million after posting a profit a year earlier, despite double-digit growth in both users and revenue. Monthly active users climbed 11 % to 696 million and paying subscribers rose 12 % to 276 million, helped in part by the company’s court victory over Apple that allows in-app links to outside payment options. Revenue increased 10 % to €4.2 billion, while gross margin expanded 2.3 percentage points to 31.5 %. Management attributed the swing back to red ink largely to €116 million in higher “social charges” — payroll taxes that rise with the share price — as well as higher payroll and marketing costs. Advertising remained weak, slipping 1 % from a year earlier; executives called the quarter a “low point” for the ad business. The underperformance prompted additional changes in the ads unit, including the departure of long-time global advertising head Lee Brown, who is joining DoorDash. Chief Executive Officer Daniel Ek said the company has been “moving too slowly” in advertising but defended a measured approach to subscription price increases, arguing that customer retention is more valuable than rapid hikes. For the current quarter Spotify forecast operating income of about €485 million on revenue of €4.2 billion, both below analyst expectations. The shares fell roughly 11 % after the results were released, paring back part of the stock’s 53 % gain year-to-date.