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Sep 30
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Spotify Q3 2025 Earnings Report
Spotify reported strong performance in Q3 2025 with solid revenue growth, record free cash flow, and improved profitability.
Key Takeaways
Spotify delivered robust Q3 2025 results, exceeding expectations in revenue and free cash flow, with notable gains in operating income and user growth across all regions.
Total revenue reached €4.27 billion, driven by Premium subscriber growth.
Operating income rose to €582 million, supported by lower social charges and margin expansion.
Free cash flow hit a record €806 million for the quarter.
MAUs grew to 713 million and Premium Subscribers increased to 281 million.
Spotify
Spotify
Spotify Revenue by Segment
Revenue by Segment
Premium Revenue
CapyFin.comAd-Supported Revenue
CapyFin.com Forward Guidance
Spotify expects continued growth in Q4 2025, projecting increases in users, revenue, and operating income, supported by strength in the Ad-Supported segment.
Positive Outlook
- Total MAUs expected to reach 745 million.
- Premium Subscribers forecasted to grow to 289 million.
- Revenue guidance set at €4.5 billion.
- Gross margin expected to expand to 32.9%.
- Operating income projected at €620 million.
Challenges Ahead
- FX headwinds expected to reduce Y/Y growth by ~620 bps.
- Social Charges projected at €17 million due to share price.
- ARPU may remain under pressure from product/market mix.
- Podcast advertising softness may continue to impact ad revenues.
- Ongoing marketing and personnel costs may weigh on margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income