Spotify Technology (SPOT) Q3 2026 earnings summary

Executive summary

• Q3 revenue was €4,969M, up 16% reported and 14% at constant currency; MAUs reached 788M and Premium subscribers 306M, 1M above guidance.

• Gross margin was 33.0%, up 136 bps YoY; operating income was €672M and free cash flow was €735M.

• Premium growth and improving advertising momentum supported results; trailing-12-month free cash flow was €3.2B.

• Q4 guidance calls for continued growth, while operating-expense growth is expected to moderate from Q3 and into 2027.

Financial highlights

• Revenue was €4,969M, up 16% reported and 14% at constant currency; gross profit was €1,639M, up 21% YoY.

• Operating income was €672M, up 15% reported and 12% at constant currency; operating margin was 13.5%.

• Net income attributable to owners was €518M versus €899M YoY; diluted EPS was €2.48 versus €3.28, reflecting lower finance income and higher tax expense.

• Operating cash flow was €740M and free cash flow €735M; capital expenditures were €6M, down €17M YoY.

• Nine-month revenue was €14,279M, operating income €2,688M, and free cash flow €2,356M.

Outlook and guidance

• Q4 guidance: 818M MAUs, implying ~30M net adds; 316M Premium subscribers, implying ~10M net adds.

• Revenue guidance is €5.2B, with a ~230 bps YoY FX tailwind based on Q3 closing rates; gross margin is guided to 33.8% and operating income to €820M.

• Q4 ARPU growth is forecast at 4.5%-5% YoY, driven by pricing and Audiobooks+ add-ons, partly offset by lapping pricing actions across more than 150 markets.

• Q4 gross-margin guidance implies ~70 bps YoY expansion; full-year 2026 expansion is expected at ~130 bps versus 2025.

• Advertising is expected to progress toward double-digit growth in Q4; OpEx growth is expected to moderate in Q4 and into 2027.