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Dec 31, 2025
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Spotify Q4 2025 Earnings Report
Spotify delivered strong profitability and record free cash flow alongside solid user growth in Q4 2025.
Key Takeaways
Spotify generated €4.53B in revenue in Q4 2025, driven by continued Premium subscriber growth and improved margins. Operating income rose sharply to €701M and net income reached €1.17B, while free cash flow remained robust at €834M.
Revenue reached €4.53B in Q4 2025, up 7% year over year.
Operating income improved to €701M, reflecting margin expansion.
Free cash flow totaled €834M, supporting a strong liquidity position.
Monthly active users grew to 751M, with Premium subscribers reaching 290M.
Revenue by Segment
Forward Guidance
For Q1 2026, Spotify expects continued user growth, stable revenue, and solid profitability despite foreign exchange headwinds.
Positive Outlook
- Total revenue guidance of approximately €4.5B for Q1 2026.
- Premium subscribers expected to reach around 293M.
- Total MAUs expected to grow to approximately 759M.
- Operating income guided to approximately €660M.
- Gross margin expected to remain above 32%.
Challenges Ahead
- Foreign exchange expected to create a meaningful revenue headwind.
- Gross margin expected to decline sequentially from Q4 levels.
- Advertising pricing softness may persist in some markets.
- Higher marketing and personnel costs expected in Q1.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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