Spotify reached the 300 million premium subscriber mark over the second quarter of 2026 -- but that wasn't enough to make the audio streamer's latest earnings report a hit with investors.

Shares dropped 4.9% to $462.74 ahead of Tuesday's opening bell. Futures tracking the S&P 500 were 0.3% higher.

Spotify added 7 million premium subscribers from a year ago over the second quarter, reaching the 300 million milestone for the first time ever. Its monthly active users rose 12% from a year ago to 777 million.

But those engagement stats weren't enough to outweigh disappointing results for the period. The Swedish company reported earnings of 2.61 euros a share, as revenue rose 14% from a year ago to EUR4.78 billion ($5.51 billion).

Analysts were expecting earnings of EUR2.76 a share on revenue of EUR4.79 billion, according to a FactSet poll.

Higher costs were one problem. Operating expenses jumped 3% from a year ago to EUR941 million, as Spotify poured more money into marketing and cloud and AI spending.

The company's guidance was also a little disappointing. For the current quarter, Spotify expects operating income of EUR670 million and revenue of EUR5 billion. Wall Street was looking for operating income of EUR678 million and revenue of EUR4.93 billion.