Q3 25 EPS
$3.28
BEAT +53.41%
Est. $2.14
Q3 25 Revenue
$4.27B
BEAT +0.94%
Est. $4.23B
vs S&P Since Q3 25
-36.8%
TRAILING MARKET
SPOT -28.2% vs S&P +8.6%
Market Reaction
Did SPOT Beat Earnings? Q3 2025 Results
Spotify posted a blowout third quarter, with earnings per share of $3.28 beating the $2.14 consensus by 53.41% and revenue of $4.27 billion edging past the $4.23 billion estimate while growing 7.1% year-over-year. The standout driver behind the profi… Read more Spotify posted a blowout third quarter, with earnings per share of $3.28 beating the $2.14 consensus by 53.41% and revenue of $4.27 billion edging past the $4.23 billion estimate while growing 7.1% year-over-year. The standout driver behind the profit beat was operating income of $582 million, well above the company's own $485 million guidance and reflecting a 13.6% operating margin, up from 11.4% a year ago, with favorable Social Charges, gross margin strength, and disciplined marketing and personnel costs all contributing. Monthly active users crossed 700 million to reach 713 million, while premium subscribers climbed 12% to 281 million, and gross margin expanded to 31.6%, aided by a sharp improvement in the Ad-Supported segment. Free cash flow reached $806 million, and Spotify ended the quarter with $9.10 billion in cash and investments. Looking ahead, the company guided Q4 revenue to $4.50 billion, with operating income of $620 million and MAUs of 745 million, even as it flagged approximately 620 basis points of foreign exchange headwinds to reported growth.
Key Takeaways
- • Premium subscriber growth of 12% Y/Y to 281 million driving Premium revenue
- • Gross margin expansion of 53 bps Y/Y to 31.6%, led by Ad-Supported segment improvement of 525 bps
- • Social Charges came in €41 million below forecast at (€16) million due to share price movements
- • Lower marketing and personnel costs relative to expectations
- • MAUs surpassed 700 million, growing 11% Y/Y to 713 million
SPOT YoY Financials
Q3 2025 vs Q3 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% |