In Spotify’s just-released earnings report (Q4 2025) we see good news on the top lines motivating a vigorous bounce in stock price.
A long view puts that surge in larger perspective.
(These perspectives will change during the day and over time, naturally.)
Whether the enthusiastic response is temporary or lasting, it’s easy to see the motivating metrics:
- Revenue rose 13% year-over-year
- On the profitability side, gross margin reached 33.1% on net income of 1.17 billion Euros (1.39B dollars).
- Earnings per share was 4.43 Euros ($5.26), far exceeding market expectation
The usage metrics likewise pointed upward:
Monthly active users reached 751 million, increasing 11% year-over-year.
Upselling was successful too: Premium subscribers grew to 290 million, a +10% rise.
This report marks the final earnings summary under Daniel Ek’s CEO leadership; he now shifts to Executive Chairman of the board, as RAIN reported HERE.
The company leveraged AI productively, benefitting from automated features such as “Prompted Playlists.”
Looking ahead, Spotify tells investors to expect Q1 2026 to deliver 759 monthly users and 293M subscribers.
