Spotify Earnings Surge on User Growth
Spotify earnings rose as record user growth and stronger paid subscribers lifted profit, prompting firmer quarterly operating guidance and trading flows.
KEY TAKEAWAYS
- MAUs hit 751 million after a record 38 million net adds, up 11.0% year over year.
- Premium subscribers totaled 290 million with 9 million net adds and 10.0% growth.
- Company raised first-quarter operating income guidance to €660 million, above a €652.3 million forecast.
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Spotify Technology SA (SPOT) said in its Feb. 10, 2026 earnings release that accelerating user growth and stronger paid subscriptions boosted fourth-quarter profitability and cash generation, prompting the company to raise its operating-income guidance for the first quarter.
User Growth and Subscriptions
Spotify reported monthly active users (MAUs) reached 751 million in the fourth quarter of 2025, driven by a record 38 million net additions and an 11.0% year-over-year increase. Paid subscriptions totaled 290 million, with 9 million net adds and 10.0% growth, roughly matching a Street estimate of 290.9 million.
For the first quarter of 2026, the company forecast 759 million MAUs and 293 million premium subscribers, expecting continued user growth despite recent price increases.
Profitability, Cash Flow, and Guidance
Operating income rose 47.0% year over year to €701 million, yielding a 15.5% margin. Gross margin expanded 83 basis points to 33.1%. Revenue reached €4.53 billion, up 7.0% year over year and 13.0% on a constant-currency basis, slightly above a €4.52 billion estimate.
Free cash flow was €834 million for the quarter and €2.9 billion for full-year 2025.
Spotify guided first-quarter revenue to €4.5 billion, below a €4.57 billion estimate, while projecting operating income of €660 million, above a €652.3 million forecast.
Leadership and Strategic Positioning
Daniel Ek transitioned to executive chairman in January 2026. Alex Norström and Gustav Söderström now serve as co-chief executives overseeing daily operations. The company described itself as a technology platform for audio and creator tools. Ek said, “Today, what we’ve really built is a technology platform for audio — and increasingly, for all the ways creators connect with audiences.”
