Q1 25 EPS
$1.07
MISS 54.02%
Est. $2.33
Q1 25 Revenue
$4.19B
MISS 0.24%
Est. $4.20B
vs S&P Since Q1 25
-51.5%
TRAILING MARKET
SPOT -20.1% vs S&P +31.5%
Market Reaction
Did SPOT Beat Earnings? Q1 2025 Results
Spotify Technology posted a mixed first quarter for 2025, delivering solid top-line growth while falling well short of profit expectations as non-cash financial charges weighed heavily on the bottom line. The streaming giant reported earnings per sha… Read more Spotify Technology posted a mixed first quarter for 2025, delivering solid top-line growth while falling well short of profit expectations as non-cash financial charges weighed heavily on the bottom line. The streaming giant reported earnings per share of $1.07, missing the consensus estimate of $2.33 by 54.02%, even as revenue climbed 15.2% year-over-year to $4.19 billion, just a hair below the $4.20 billion analysts had forecast. The primary culprit behind the EPS shortfall was a surge in finance costs to $252 million, driven by $180 million in fair value losses on Spotify's exchangeable notes and $58 million in foreign exchange losses, which compressed net income despite a notably stronger operating performance. On the operational side, the story was considerably brighter: gross margin expanded to 32% from 28% a year ago, operating income tripled to $509 million, and free cash flow more than doubled to $534 million, supported by Premium Subscriber growth of 12% to 268 million and monthly active users reaching 678 million.
Key Takeaways
- • Premium Subscriber growth of 12% YoY to 268 million
- • MAU growth of 10% YoY to 678 million
- • Premium ARPU increase of 4% to €4.73 driven by price increases
- • Consolidated gross margin expansion from 28% to 32%
- • Premium gross margin expansion from 30% to 33%
- • Ad-Supported gross margin expansion from 6% to 15%
- • Lower share-based compensation expense (€42M vs €69M)
- • Growth in music impressions sold in programmatic and self-serve channels
SPOT YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
SPOT Revenue by Segment
With YoY comparisons, source: SEC Filings
SPOT Revenue by Geography
With YoY comparisons, source: SEC Filings
SPOT Earnings Trends
SPOT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SPOT EPS Trend
Earnings per share: estimate vs actual
SPOT Revenue Trend
Quarterly revenue: estimate vs actual
SPOT Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.95 | $3.45 | +16.93% | $4.53B | +0.24% |
| Q4 25 BEAT FY | $2.85 | $4.43 | +55.57% | $4.53B | +0.20% |
| FY Full Year | — | $10.51 | — | $17.19B | — |
| Q3 25 BEAT | $2.14 | $3.28 | +53.41% | $4.27B | +0.94% |
| Q2 25 MISS | $2.05 | $-0.42 | -120.45% | $4.19B | -1.80% |
| Q1 25 MISS | $2.33 | $1.07 | -54.02% | $4.19B | -0.24% |
| Q1 24 BEAT | $0.69 | $0.97 | +40.58% | $3.64B | -5.44% |