Spotify Technology (SPOT) Company Report

Spotify is set to increase its U.S. subscription prices in early 2026, marking its first American price hike since mid-2024.
This move is driven by pressures from major record labels and occurs despite a 4% year-over-year decline in premium average revenue per user.
The company maintains a strong user base with over 713 million monthly active users and 281 million premium subscribers.
Financially, Spotify exhibits robust revenue growth with a 3-year rate of 12.1%, a net margin of 8.41%, and is trading at a premium valuation.
The price increase coincides with a leadership transition, as CEO Daniel Ek is preparing to step down and transition to executive chair early next year.

8 days ago

Spotify CFO Christian Luiga Discusses Growth and Profitability Outlook

SPOT

Guidance Update

Revenue Acceleration/Inflection

Share Buyback

Spotify's CFO Christian Luiga expressed confidence in achieving long-term ambitions, including 1 billion+ MAU and improved margins, noting nearly 300 million user and 100 million subscriber growth since 2022, with profitability expected in 2024 and 2025.
The company's recent price increases across over 150 countries have not materially impacted churn, demonstrating strong pricing power, and engagement is increasing across all verticals without cannibalization.
Spotify is leveraging AI for cost savings, such as developing its Apple TV product at less than a tenth of the original cost, and for enhancing personalization, including a partnership with OpenAI.
The advertising business is undergoing a transition to programmatic, with an inflection point anticipated in the second half of 2026, and is currently experiencing low single-digit growth.
With EUR 9.1 billion in gross liquidity, Spotify prioritizes organic growth and uses excess cash for share repurchases to offset dilution, highlighting significant growth potential as only 3% of the global population currently pays for the service.

Nov 13, 2025, 8:00 AM

Transcript

Spotify CFO Christian Luiga Outlines Strategic Priorities and Outlook

SPOT

CEO Change

Revenue Acceleration/Inflection

New Projects/Investments

Spotify's CFO, Christian Luiga, expressed confidence in achieving long-term ambitions, including over 1 billion MAU and 35-40% gross margins, noting user growth of nearly 300 million and 100 million new subscribers since 2022.
The company is undergoing a leadership transition with Daniel Ek moving to Executive Chairman and Alex and Gustav becoming co-CEOs, a change expected to maintain continuity given their previous co-president roles.
Spotify has successfully implemented price increases in over 150 countries without significant churn, demonstrating strong pricing power. Gross margins are projected to continue growing, with a seasonal dip expected in Q1 due to advertising trends.
Strategic growth drivers include increasing user engagement through new verticals like audiobooks and leveraging AI for cost efficiencies and enhanced personalization. The advertising business is transitioning to programmatic, with an inflection point anticipated in H2 2026.

Nov 13, 2025, 8:00 AM

Transcript

Spotify CFO Discusses Strategic Priorities and Financial Outlook

SPOT

CEO Change

Share Buyback

New Projects/Investments

CFO Christian Luiga expressed confidence in Spotify's progress towards its 2022 long-term ambitions, highlighting an increase of close to 300 million users and 100 million more subscribers since then, with continued growth and profitability expected.
Spotify has implemented price increases across more than 150 countries without seeing any material change in churn, demonstrating strong pricing power and a strategy to assess individual markets for future pricing decisions.
The company is expanding its offerings through new verticals like audiobooks, which are showing success, and plans to introduce more tiering initiatives in the next twelve months to drive growth and customer engagement.
Spotify's advertising business is undergoing a transition in 2025 towards programmatic advertising, with 2026 anticipated as an inflection point for accelerated growth in this segment.
With EUR 9.1 billion in gross liquidity at quarter-end, Spotify prioritizes organic and non-organic growth investments, and plans to use excess cash for share repurchases to offset dilution from stock option programs.

Nov 13, 2025, 8:00 AM

Transcript

Spotify CFO Discusses Strategic Priorities and Growth Outlook

SPOT

Management Change

New Projects/Investments

Revenue Acceleration/Inflection

CFO Christian Luiga expressed confidence in achieving Spotify's long-term ambitions, including 1+ billion MAU, 35%-40% gross margins, and 10%-20% EBIT margins, citing significant user and subscriber growth since 2022 and ongoing monetization efforts.
The company announced a management transition with Daniel Ek moving to Executive Chairman and Alex and Gustav becoming co-CEOs, which is seen as a continuation of the existing leadership structure with minimal business impact.
Spotify has demonstrated strong pricing power, with recent price increases across over 150 countries resulting in no material change in churn, and plans for more individualized market-specific pricing strategies going forward.
Strategic growth drivers include the successful expansion into new verticals like audiobooks (now in 14 countries) and the integration of AI to enhance personalization, drive engagement, and achieve cost efficiencies, such as developing the Apple TV app at less than a tenth of the original cost.
The advertising business is undergoing a transition to programmatic, with an inflection point expected in the second half of 2026, and the CFO highlighted the vast untapped market potential, noting that only 3% of the global population currently pays for Spotify.

Nov 13, 2025, 8:00 AM

Transcript

Spotify Technology S.A. to Vote on New Board Members and Co-CEO Appointments

SPOT

Board Change

Management Change

Proxy Vote Outcomes

Spotify Technology S.A. will hold an Extraordinary General Meeting on December 10, 2025, to vote on the election of two additional members to its Board of Directors.
The nominees, Mr. Alex Norström and Mr. Gustav Söderström, are currently Co-Presidents and are set to become co-Chief Executive Officers effective January 1, 2026.
Their proposed terms as directors would also begin on January 1, 2026, and conclude at the general meeting approving the annual accounts for the financial year ending on December 31, 2025.
The Board of Directors recommends a "FOR" vote for the election of both nominees.

Nov 5, 2025, 9:21 PM

6-K

Spotify Technology S.A. Reports Q3 2025 Financial Results

SPOT

Earnings

Revenue Acceleration/Inflection

Spotify Technology S.A. reported total revenue of €4,272 million for the three months ended September 30, 2025, with net income attributable to owners of the parent reaching €899 million.
The company saw continued user growth, with Monthly Active Users (MAUs) increasing by 11% to 713 million and Premium Subscribers growing by 12% to 281 million as of September 30, 2025.
Despite a 4% decrease in Premium Average Revenue Per User (ARPU) to €4.53, primarily due to unfavorable foreign exchange rates and changes in product and market mix, Premium revenue still increased by 9% to €3,826 million.
Spotify's liquidity remains strong, with cash and cash equivalents and short-term investments totaling €9,062 million as of September 30, 2025, and Free Cash Flow for the nine months ended September 30, 2025, reaching €2,040 million.

Nov 4, 2025, 9:46 PM

6-K

Datavault AI Partners with NFHITS and Music Dash on Blockchain Music Monetization

SPOT

New Projects/Investments

Product Launch

Revenue Acceleration/Inflection

Datavault AI (Nasdaq: DVLT) has initiated a collaboration with NFHITS to pioneer a Web 3.0, blockchain-based music and content distribution network.
This partnership aims to establish a fair, transparent, and automated monetization system for artists and creators, leveraging AI and blockchain technology.
Datavault AI will integrate its VerifyU and ADIO technologies into NFHITS' framework to authenticate artist rights, protect royalties, and reduce digital piracy, while also creating new revenue opportunities such as digital collectibles.
The combined distribution network, which includes platforms like Apple Music, Spotify, TikTok, and Tidal, seeks to empower artists with exclusive distribution and intellectual property protection.

Nov 4, 2025, 9:40 PM

Press Release

Spotify Announces Strong Q3 2025 Results and Q4 2025 Guidance

SPOT

Earnings

Guidance Update

Share Buyback

Spotify reported Q3 2025 Total Revenue of €4,272 million, marking a 7% year-over-year increase (or 12% on a constant currency basis), with Operating Income reaching €582 million, a 28% year-over-year growth.
The company achieved a Gross Margin of 31.6% and generated a record Q3 Free Cash Flow of €806 million.
Monthly Active Users (MAUs) grew 11% year-over-year to 713 million, and Premium Subscribers increased 12% year-over-year to 281 million.
For Q4 2025, Spotify provided guidance including Total Revenue of €4.5 billion, a Gross Margin of 32.9%, and Operating Income of €620 million.
Spotify repurchased $77 million in shares during Q3 and maintained a strong balance sheet with €9.1 billion in cash and cash equivalents.

Nov 4, 2025, 1:00 PM

Presentation

Spotify Reports Strong Q3 2025 Results, Issues Q4 Guidance, and Announces CEO Transition

SPOT

Earnings

Guidance Update

Management Change

Spotify reported a strong Q3 2025, exceeding guidance with 713 million monthly active users (MAU) and achieving €4.3 billion in total revenue, a 31.6% gross margin, and €582 million in operating income.
The company issued Q4 2025 guidance, projecting 745 million MAU, 289 million subscribers, €4.5 billion in total revenue, a 32.9% gross margin, and €620 million in operating income.
CEO Daniel Ek will transition to Executive Chairman on January 1, with Alex Norström and Gustav Söderström stepping into roles as co-CEOs.
Key strategic developments include the global rollout of an enhanced free experience driving MAU growth, the launch of lossless audio for Premium users, and new direct license deals securing broader video rights. Spotify also repurchased $77 million in shares in Q3 2025.

Nov 4, 2025, 1:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Spotify Technology.