Deezer Returns to Profit as Direct Growth Offsets Subscriber Decline

Paris-based streaming company Deezer returned to profit in H1 2026 as stronger direct subscriptions offset declines in its partnerships business.

Profit turnaround:

• H1 net profit reached €6.7m (USD $7.6 million), reversing a €7.6m ($8.6 million) net loss a year earlier, while operating income turned positive at €6.5m ($7.4 million).

• Total revenue rose 0.4% YoY to €268.2m ($305 million), with Adjusted EBITDA increasing to €8.5m ($9.7 million).

Ups and downs:

• Revenue from the Direct business – subscriptions sold directly to customers – climbed 6.7% YoY to €185.2m ($210.6 million), with subscribers up 8.7% YoY to 5.8 million.

• This subscriber growth was led by France (+8.4%) and Rest of World (+9.2%).

• However, revenue from the Partnerships business – which distributes its service through telcos and other brands – fell 7.6% YoY to €70.7 million ($80.4 million), and subscribers dropped 20.2% YoY to 3.1 million, largely due to the wind-down of Deezer’s Mercado Libre partnership in Brazil.

• Direct growth couldn’t offset Partnership losses, and as a result, total subscribers declined 3.5% YoY to 8.9 million.

What they said:

• Alexis Lanternier, CEO of Deezer: “The first half of the year demonstrates that our strategy is delivering. Our Direct business continues to grow, profitability has become sustainable, and our strong financial position allows us to invest confidently in future growth. In Partnerships, revenue stabilized sequentially in Q2 after several quarters of decline, as new commercial initiatives gained traction and the Mercado Libre headwind is fading.”

• He adds: “We also continued to strengthen Deezer‘s leadership in AI music, advancing fairness and transparency for the music ecosystem, while creating selective new monetization opportunities. Looking ahead, we remain focused on disciplined execution. Our financial strength gives us the flexibility to increase selective investments in the second half while remaining fully on track to deliver our FY26 guidance.”