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Spotify reports 16% revenue growth to €4.97B but misses quarterly estimates

Spotify posted third-quarter revenue of €4,969 million and diluted earnings per share of €2.48, falling short of analyst expectations despite strong subscriber additions.

Spotify logo with green emblem and wordmark on a black background
Image: @wallstengine

Spotify Technology SA reported third-quarter revenue of €4,969 million ($5.719 billion), marking a 16% increase year over year but missing expectations of €4.98 billion ($5.730 billion), according to reports from Wall St Engine and TrendSpider. Diluted earnings per share reached €2.48 ($2.85), down 24% year over year in euro terms and below analyst forecasts of €2.81 ($3.11). Operating income rose 15% to €672 million, slightly under the projected €680 million, while net income totaled €518 million against a €589 million estimate.[1][2][3][5]

User growth remained a bright spot. Total monthly active users climbed 11% year over year to 788 million, matching estimates and up 1% from the prior quarter, according to Bloomberg reporting via Techmeme. Premium subscribers expanded 9% year over year to 306 million, adding 6 million net subscribers compared to expectations of 5 million, with Barron's reporting the tally surpassed Spotify's previous guidance. Premium segment revenue rose 17% to €4,487 million, while ad-supported revenue grew 10% to €482 million.[1][2][3][4][5]

For the fourth quarter, Spotify guided revenue of €5.2 billion versus a €5.23 billion estimate, and projected operating income of €820 million, slightly ahead of an €813 million estimate. The company expects to reach 818 million monthly active users and 316 million premium subscribers. Alongside results, Spotify noted the U.S. rollout of Taste Profile for Premium users, the introduction of Creator Memberships for podcasts, and $1.1 billion in year-to-date share repurchases through October 21st.[3]

Key facts

  • Spotify reported Q3 revenue of €4,969 million ($5.719 billion), up 16% year over year but below estimates of €4.98 billion ($5.730 billion).
  • Diluted EPS came in at €2.48 ($2.85), falling short of expectations of €2.81 ($3.11).
  • Operating income rose 15% year over year to €672 million, missing the €680 million consensus.
  • Monthly active users reached 788 million, up 11% year over year and 1% quarter over quarter, meeting expectations.
  • Premium subscribers grew 9% year over year to 306 million, beating prior company forecasts with 6 million net additions against 5 million expected.
  • Q3 gross margin expanded 136 basis points to 33.0%, while free cash flow declined 9% year over year to €735 million.
  • Spotify guided Q4 revenue to €5.2 billion versus €5.23 billion expected, and operating income to €820 million versus €813 million expected.

Sources · 5 sources

  1. TR

    TrendSpider@TrendSpiderPost on X ·

    $SPOT Q3 EARNINGS EPS: $2.85 vs $3.11 est ❌ Sales: $5.719B vs $5.730B est ❌ Subscriber Net Additions +6M vs +5M est ✅ https://t.co/G0WfOsyIxI

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  2. TE

    TechmemeArticle ·

    Spotify reports Q3 revenue up 16% YoY to €4.97B, below €4.98B est., subscribers up 9% to 306M, MAUs up 11% to 788M, meeting est., and €672M operating income (Ashley Carman/Bloomberg) Ashley Carman / Bloomberg : Spotify reports Q3 revenue up 16% YoY to €4.97B, below €4.98B est., subscribers up 9% to 306M, MAUs up 11% to 788M, meeting est., and €672M operating income — Spotify Technology SA reported monthly active users grew 1% in the third quarter, over the prior quarter …

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  3. WS

    Wall St Engine@wallstenginePost on X ·

    SPOTIFY $SPOT Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: €4,969M (Est. €4.98B) 🔴; +16% YoY 🔹 Diluted EPS: €2.48 (Est. €2.81) 🔴; -24% YoY 🔹 Gross Margin: 33.0%; +136 bps YoY 🔹 Oper Income: €672M (Est. €680M) 🔴; +15% YoY Q4’26 Guide: 🔹 Revenue: €5.2B (Est. €5.23B) 🟡 🔹 Operating Income: €820M (Est. €813M) 🟢 🔹 Gross Margin: 33.8% 🔹 MAUs: 818M 🔹 Premium Subscribers: 316M Segment Revenue: 🔹 Premium: €4,487M; +17% YoY 🔹 Ad-Supported: €482M; +10% YoY Other Q3 Metrics: 🔹 MAUs: 788M; +11% YoY 🔹 Premium Subscribers: 306M; +9% YoY 🔹 Net Income: €518M (Est. €589M) 🔴 🔹 Free Cash Flow: €735M; -9% YoY 🔹 Premium ARPU: €4.95; +9.3% YoY 🔹 Ad-Supported MAUs: 499M; +12% YoY 🔹 Operating Margin: 13.5% Key Updates: 🔹 Social Charges: €13M above forecast at €22M in current period Operating Expenses 🔹 Share repurchases: $1.1B year-to-date through October 21st 🔹 Taste Profile launched to Premium Subscribers in the U.S. 🔹 Launched Creator Memberships for eligible podcast creators

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  4. BA

    Barron's@barronsonlinePost on X ·

    Spotify reported more premium subscribers than it had previously forecast as revenue at the streaming platform jumped 16%. https://t.co/w4cLSqxRFJ

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  5. TE

    Techmeme@TechmemePost on X ·

    Spotify reports Q3 revenue up 16% YoY to €4.97B, below €4.98B est., subscribers up 9% to 306M, MAUs up 11% to 788M, meeting est., and €672M operating income (@ashleyrcarman / Bloomberg) (Visit Techmeme dot com for the link and full context!)

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