NYSE$SPOT

Spotify Technologies SA · Q2 2025 earnings

Q2 2025 earnings · · Before market open · Investor relations

Briefing

Spotify reported solid user and revenue growth in Q2 2025, despite posting a net loss due to higher Social Charges.

Spotify added more users and subscribers than expected and delivered record free cash flow. However, net income turned negative as share-based compensation increased due to stock appreciation.

  • Total revenue reached €4.193 billion, up from €3.807 billion a year ago
  • Free cash flow hit a record €700 million for the quarter
  • Monthly Active Users grew to 696 million, exceeding guidance
  • Net loss of €86 million driven by higher-than-expected Social Charges tied to share price

Headline financials

Total Revenue

$4.91B

Previous: $4.1B+19.9%
EPS (adj)

-$0.49

Previous: $1.43-134.3%
Monthly active users

696.0M

No prior period
Premium subscribers

276.0M

No prior period
Ad-supported MAUs

433.0M

No prior period
Premium ARPU

$5.36

No prior period
Net Income

-$101M

Previous: $295M-134.2%
Operating Income

$476M

Previous: $286M+66.2%
Gross Profit

$1.55B

Previous: $1.19B+30.1%

Revenue & EPS history

Spotify · Revenue · Quarterly

$4.91B

Q2 2025+19.9%vs Q2 2024
Beat estimate in 5 of 12 quarters(42%)
ActualEstimate

Forward guidance

Spotify expects continued user growth in Q3 2025, along with stable gross margin and improved operating income, but warns of FX headwinds and additional regulatory and social charge costs.

Tailwinds

  • MAUs expected to reach 710 million
  • Premium subscribers expected to grow to 281 million
  • Operating income forecast at €485 million
  • Gross margin projected to hold at 31.1%
  • Solid subscriber momentum across all regions

Headwinds

  • Forecast assumes ~490 bps FX headwind
  • €25 million in expected Social Charges
  • Regulatory charge in Premium to impact gross margin by ~40 bps
  • Ad-supported revenue faces pricing softness
  • Share price volatility may continue to impact costs unpredictably

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-0.8%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+0.7%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+18.1%

Q4 2022

Best reaction

-21.5%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-12.4%-11.0%+4.0%
Q1 2026-12.3%-11.0%+4.0%
Q3 2025-2.1%-4.2%-12.9%
Q2 2025-11.5%-10.5%-1.9%
Q1 2025-3.5%+7.7%+6.5%
Q4 2024+13.2%+13.5%-1.0%
Q3 2024+13.9%+11.7%+17.0%
Q2 2024+13.9%+8.9%+15.8%
Q1 2024+3.3%+6.4%+10.4%
Q4 2023+7.9%+7.8%+21.1%
Q3 2023+4.7%+3.1%+17.2%
Q2 2023-8.9%-9.2%-17.1%
Q1 2023+1.3%+1.6%+12.3%
Q4 2022+18.1%+21.2%+18.5%
Q3 2022-10.8%-11.9%-17.3%
Q2 2022+10.2%+10.9%+5.1%
Q1 2022-7.0%-1.4%+2.3%
Q4 2021-21.5%-15.8%-33.6%
Q3 2021+14.6%+19.3%-0.5%
Q2 2021-4.9%-3.6%-4.6%
Q1 2021-10.5%-15.4%-17.5%
Q4 2020-8.8%-6.2%-20.3%
Q3 2020-13.1%-14.3%+0.5%
Q2 2020-2.0%-4.8%+4.6%
Q1 2020+8.4%+4.0%+29.4%
Q4 2019+0.0%-3.9%-5.9%
Q3 2019+12.7%+21.7%+18.4%
Q2 2019+0.3%-3.4%-13.0%
Q1 2019-1.8%-1.5%-9.1%
Q4 2018-5.9%-1.1%+0.6%
Q3 2018-7.1%-4.7%-8.9%
Q2 2018-0.9%-2.7%+2.3%
Q1 2018-2.7%-9.0%-3.4%
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016

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