Deezer’s First Half Revenue Grows on More Direct Subscribers

Paris-based music streamer Deezer reported Tuesday (July 28) that revenue edged up slightly, as the company gained subscribers in France and other markets, offsetting a decline in subscribers from its business partnerships.

Revenue of 268.2 million euros ($305 million) and adjusted gross profit of 65.8 million euros ($75 million) both improved by 0.4% in the first six months of 2026 compared to the first half of 2025, for a bottom line net income of 6.7 million euros ($7.6 million). A year ago, the company reported a net loss of 7.6 million euros ($8.5 million).

While Deezer lost a net total of 300,000 subscribers, it benefited from adding nearly half a million direct subscribers in France and other markets, for a total of 8.9 million subscribers. Subscribers who sign up with Deezer directly not only generate more revenue for the company than subscribers who sign up through telecom service providers like Orange or TIM, with whom Deezer has business partnerships. The growth of direct subscribers has also helped offset the termination of Deezer’s deal with Latin American e-commerce giant Mercado Libre.

“Our direct business continues to grow, profitability has become sustainable, and our strong financial position allows us to invest confidently in future growth,” Deezer CEO Alexis Lanternier said in a statement. “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.”

Revenue from direct subscribers rose by nearly 7% to 185.2 million euros ($210.9 million), as partnerships revenue of 70.7 million euros ($80.1 million) was down 7.6% from the first six months of 2025. Partnerships revenue was flat compared to the second half of 2025. Subscribers through Deezer’s partnerships totaled 3.1 million in the first half of 2026, nearly 800,000 less than in the first half of 2025.

Despite the 20% decline in subscribers from partnerships, Deezer said average revenue per user (ARPU) from its partnerships rose by nearly 19% to 3.7 euros ($4.21) a month. ARPU from direct subscribers held flat at 5.4 euros ($6.15), nearly even with 5.5 euros ($6.26) a year ago.

In July, Deezer signed a new partnership with Winamp, which will result in Winamp launching a streaming subscription offering using a white-labeled version of Deezer’s technology and catalog. Earlier this year, Deezer said it renewed 10 major distribution agreements, including with TIM and Sonos, and several new distribution agreements with companies including Taiwan’s EDF Entertainment and Brazilian streaming platform Chippu.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) improved to 8.5 million euros ($9.7 million) from 2.1 million euros ($2.4 million) a year ago. As a percentage of Deezer’s revenue, adjusted EBITDA improved by 2.4 percentage points to 3.2%.

The company’s total cash increased 34% to nearly 100 million euros ($114 million) and cut its financial debt by nearly 40% to 4.9 million euros ($5.6 million).