Spotify

Spotify runs an audio streaming service with users in many countries. Users listen to music, podcasts and audiobooks on a free tier with ads or on a paid Premium tier. In Q3 2026, it had 788 million monthly active users and 306 million Premium subscribers. Revenue was €4,969 million in the quarter, of which Premium gave €4,487 million and ads gave €482 million.

It pays most of its revenue to record labels, music publishers and other rights holders. The company is based in Luxembourg and reports in euros under IFRS. Its Co-Chief Executive Officers are Alex Norström and Gustav Söderström, and it had 7,284 employees at the end of Q3 2026. The shares trade on the New York Stock Exchange.

Spotify trades at a premium because investors pay for its scale and for profit margins that keep rising. The gross margin reached 33.0% in Q3 2026, up from 31.6% a year earlier, and free cash flow was €3.2 billion over the last 12 months. Premium subscribers grew 9% and Premium ARPU grew 7.5% at constant currency as price increases took effect.

For the premium to be earned, three things must be true. Spotify must reach its Q4 2026 guidance of 316 million subscribers, €5.2 billion of revenue and operating income of €820 million. Margins must keep rising in 2027 while operating expenses, which grew 19% in Q3 2026 without currency effects and social charges, grow more slowly than revenue.

Price increases must not raise churn, and deals with labels must keep music costs in line with revenue. The Q4 2026 report, expected in early February 2027, gives the next test and the first view of 2027. If growth slows or costs for AI, marketing and content rise faster than revenue, the premium can shrink within one to two years.

1. Feb 9, 2027 · est.Pending

   Q4 2026 results and first view of 2027316 million subscribers or more, operating income of €820 million or more and a gross margin near 33.8% pass; a miss on subscribers or margin fails.

Every passed and failed checkpoint across all picks

• October 22, 2026Spotify reported Q3 2026 results. Revenue rose 16% to €4,969 million, or 14% at constant currency. Gross margin was 33.0% and operating income was €672 million. Monthly active users rose 11% to 788 million, and Premium subscribers rose 9% to 306 million. Free cash flow was €735 million. For Q4 2026, Spotify guided to 316 million subscribers, revenue of €5.2 billion and operating income of €820 million. It said that it had bought back $1.1 billion of shares in 2026 through October 21.
• August 20, 2026Spotify's board increased the share repurchase program by $1.5 billion, to a total remaining authorization of about $2.223 billion.
• August 4, 2026Spotify reported Q2 2026 results. Revenue rose 14% to €4,777 million, and operating income rose 61% to €655 million. Premium subscribers reached 300 million after 7 million net additions.

Next earnings

Expected about February 9, 2027. The company has not confirmed the date.

• 20-FAnnual report for the period ended Dec 31, 2025Filed February 10, 2026 · ck0001639920-20251231
• 20-FAnnual report for the period ended Dec 31, 2024Filed February 5, 2025 · ck0001639920-20241231

Every filing on SEC EDGAR (CIK 1639920)

• Spotify depends on licenses from a few large record labels and publishers. If they ask for higher royalties or limit access to music, gross margin can fall.
• Apple, YouTube and Amazon offer similar music catalogs. If rivals cut prices or bundle music with other services, Spotify can lose subscribers or pricing power.
• Operating expenses grew about 26% in Q3 2026, led by marketing and cloud and AI spending. If this spending does not bring growth, margins can stop rising.
• Spotify reports in euros but earns in many currencies. Currency moves change reported growth; they added about 1.9 percentage points to revenue growth in Q3 2026.
• The founders hold beneficiary certificates that give them strong voting power, so other shareholders have limited influence.

Spotify has no financial debt. At September 30, 2026, cash and cash equivalents were €6,032 million and short-term investments were €3,856 million; with restricted cash, the total was €9.9 billion. Read more

Spotify does not pay a dividend.

Source: company filings and market data, read on November 9, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.