Spotify Technology (SPOT) investor relations material

Executive summary

• Achieved record-high MAU net additions in Q4 2025, ending the year with over 750 million users globally and 38 million net new MAUs, both above guidance.

• Transitioned to new leadership, with Daniel Ek as Executive Chairman and co-CEOs Alex Norström and Gustav Söderström.

• Revenue grew 13% year-over-year on a constant currency basis, with strong Premium and Ad-Supported growth.

• Gross margin reached a record 33.1%, up 83 bps year-over-year, and operating income was €701 million, driven by lower Social Charges and margin strength.

• Largest ever Wrapped campaign engaged over 300 million users, with expanded video and audiobooks offerings.

Financial highlights

• Q4 2025 total revenue was €4.53 billion, up 13% year-over-year (constant currency), with premium revenue up 14% and advertising revenue up 4%.

• Gross profit was €1.50 billion, with gross margin at 33.1%, up over 80 basis points year-over-year.

• Operating income reached €701 million, exceeding forecast by €81 million, with a 15.5% margin and free cash flow at €834 million for the quarter.

• Full-year 2025 revenue grew 13%, gross profit 20%, and operating income over 50%, with a 13% full-year margin and record €2.9 billion free cash flow.

• Net income attributable to owners was €1.17 billion for Q4 2025.

Outlook and guidance

• Q1 2026 forecast: 759 million MAU (+8 million sequentially), 293 million subscribers (+3 million net adds), and €4.5 billion in revenue (+15% year-over-year).

• ARPA growth expected in the 5%-6% range; gross margin forecasted at 32.8% and operating income at €660 million for Q1.

• Guidance assumes a 670 bps FX headwind to revenue growth year-over-year.

• Both gross and operating margins expected to improve in 2026, with free cash flow projected to meaningfully exceed 2025 levels.