Spotify Technology (SPOT) investor relations material

Strategic Vision and Growth Outlook

• Targets 1 billion users and $100 billion in revenue by 2030, aiming for a mid-teens revenue CAGR and gross margin of 35%-40%.

• Expanding beyond music into podcasts, audiobooks, video, and fitness, with new monetization models and add-ons for super users.

• AI and personalization are central, leveraging proprietary data and trillions of daily taste signals to drive engagement, retention, and monetization.

• Plans to introduce multiple premium tiers and add-ons, segmenting the user base to capture higher ARPU from niche audiences.

• Capital allocation will prioritize organic growth, strategic acquisitions, and returning excess capital to shareholders via share repurchases.

User and Subscriber Growth

• Active users reached 761M globally, with nearly 300M subscribers, double the size of any other music service.

• On track toward 1 billion users, with significant growth in developing markets, especially Asia, Middle East, and Africa.

• Over 100M users spend more than 28 days per month on the platform, indicating high engagement.

• Global conversion rate to paid subscriptions is 40%, with paid penetration in the US and Canada rising from 32% in 2016 to 60% in 2026.

• India is now one of the largest markets by MAU, with a 7x increase in subscribers since the last Investor Day and a long-term path to 150M+ subscribers.

Financial Performance and Guidance

• Achieved 18% revenue CAGR and 32% gross margin in 2025, surpassing previous targets.

• Free cash flow reached nearly EUR 3 billion in 2025, with operating margin shifting from -6% to almost 13%.

• Marketplace gross profit quadrupled since 2021; both music and non-music verticals now operate above 30% margin.

• Podcasting moved from negative margins to profitability, with a path to 40% long-term margin.

• OPEX growth has remained flat since 2022, with a 23% reduction in headcount driving operating leverage.