Companies /Communication Services

Spotify Technology S.A.

NYSE: SPOT Internet Content & Information
$527.25
▼ $22.78 (−4.14%) today
Markets closed · 10:04pm ET

Q3 2025 Earnings

Reported Nov 4, 2025, 6:08am ET · SEC source
$3.28
Beat +53.41%
EPS · est. $2.14
$4.3B
Beat +0.94%
Revenue · est. $4.2B
−11.8%
Trailing market
SPOT vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Nov 4Nov 5report 6:08am ETearnings+0.5%+0.8%
−4%0+4%+8%Nov 4Nov 5earnings+0.5%+0.8%
SPOT +0.8%S&P 500 +0.5%
−4%0+4%+8%Nov 4Nov 5report 6:08am ETearnings+0.1%+0.8%
−4%0+4%+8%Nov 4Nov 5earnings+0.1%+0.8%
SPOT +0.8%NASDAQ +0.1%
−9%−6%−3%0Nov 3Nov 12report 6:08am ETearnings+1.3%−4.2%
−9%−6%−3%0Nov 3Nov 12earnings+1.3%−4.2%
SPOT −4.2%S&P 500 +1.3%
−9%−6%−3%0Nov 3Nov 12report 6:08am ETearnings+0.3%−4.2%
−9%−6%−3%0Nov 3Nov 12earnings+0.3%−4.2%
SPOT −4.2%NASDAQ +0.3%
−2.25%
Day of report
−1.52%
Next session
+1.59%
One week
−10.27%
30 days

S&P 500 over the same 30 days: +1.55%.

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 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

Forward Guidance & Outlook

For Q4 2025, Spotify expects: Total MAUs of 745 million (approximately 32 million net additions); Premium Subscribers of 289 million (approximately 8 million net additions); Total Revenue of €4.5 billion, assuming approximately 620 basis points of FX headwind based on a USD:Euro rate of 0.8523 as of September 30, 2025; Gross Margin of 32.9%, primarily driven by Y/Y favorability in the Ad-Supported segment; Operating Income of €620 million, incorporating €17 million in Social Charges based on a Q3 close share price of $698.

SPOT YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$2.0B$4.0B$4.0B$4.3BRevenue$1.2B$1.4BGross Profit$454.0M$582.0MOperating Income$300.0M$899.0MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

SPOT Revenue by Segment

Premium$3.8B+9.0%
Ad-Supported$446.0M−6.0%

SPOT Revenue by Geography

Rest of World
United States
United Kingdom
Luxembourg

Figures from SEC filings and company reports. Not investment advice.