Deezer Upgrades 2026 Outlook Following Q3 Revenue Growth

Deezer reported its second consecutive quarter of revenue growth in Q3 2026, driven by its Direct business. The Paris-headquartered streaming platform also raised its full-year revenue and profitability outlook.

Revenue growth:

• Q3 revenue rose 1.8% year-on-year to €133.8 million (+1.0% at constant currency).

• Nine-month revenue increased 0.9% YoY to €402 million (+0.6% at constant currency).

Direct business growth:

• Direct revenue grew 7.0% (6.4% at constant currency) YoY to €94.1 million, driven by subscriber growth and improved retention.

• Direct subscribers increased 5.7% YoY to 5.8 million, including growth of 6.5% in France and 4.0% in the rest of the world.

Total subscribers decline:

• Deezer’s overall subscriber base fell 3.2% YoY to 8.7 million, as Partnerships subscribers dropped 17.1% to 2.9 million amid the expected wind-down of legacy distribution agreements.

Partnerships and Other revenue fall:

• Partnerships revenue fell 6.2% (7.5% at constant currency) YoY to €33.4 million, despite a 16.7% increase in average revenue per user (ARPU) to €3.70.

• Other revenue, comprising advertising and ancillary income, fell 19.5% (20.6% at constant currency) to €6.4 million, partly due to the termination of a content licensing agreement.

FY2026 outlook upgraded:

• Deezer now expects revenue to grow slightly year-on-year, versus its previous forecast of broadly stable revenue.

• Adjusted EBITDA is expected to exceed €10 million, up from previous guidance of positive adjusted EBITDA.

• The company also expects positive free cash flow for the third consecutive year.

What they said:

• Alexis Lanternier, CEO of Deezer: “We delivered revenue growth for a second consecutive quarter, supported by the continued expansion of our Direct business.  We are focused on building lasting connections between artists and fans, giving listeners more reasons to choose Deezer and stay with us.”