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Spotify ( (SPOT) ) has provided an announcement.
Spotify reported strong fourth-quarter and full-year 2025 results on February 10, 2026, with all key performance indicators meeting or exceeding guidance and record user growth. Monthly active users rose 11% year-on-year to 751 million, including 290 million premium subscribers, while revenue grew 7% to €4.53 billion (13% in constant currency), driven by premium subscription gains and improving ad-supported performance.
Profitability improved markedly, with gross margin reaching a record 33.1% and operating income climbing 47% year-on-year to €701 million, aided in part by lower-than-forecast social charges tied to share price movements. Free cash flow totaled €834 million in the quarter and €2.9 billion for 2025, reinforcing a cash-rich balance sheet of €9.5 billion as Spotify invests in features like Wrapped, music videos, audiobooks, and AI-powered personalization, underscoring its strengthened competitive position heading into 2026.
The most recent analyst rating on (SPOT) stock is a Buy with a $720.00 price target. To see the full list of analyst forecasts on Spotify stock, see the SPOT Stock Forecast page.
Spark’s Take on SPOT Stock
According to Spark, TipRanks’ AI Analyst, SPOT is a Neutral.
Spotify’s overall stock score is driven by strong financial performance and positive earnings call highlights, including robust user growth and product innovation. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. Challenges in the advertising sector and managing churn from price increases are notable risks.
To see Spark’s full report on SPOT stock, click here.
More about Spotify
Spotify Technology S.A. is a global audio streaming service that operates in the music, podcast and audiobooks industry, offering both premium subscriptions and ad-supported access. Headquartered in Luxembourg, the company focuses on expanding its user base and deepening engagement through personalized discovery, AI-driven features and new formats such as video and audiobooks across international markets.
Average Trading Volume: 2,348,450
Technical Sentiment Signal: Sell
Current Market Cap: $87.01B
For an in-depth examination of SPOT stock, go to TipRanks’ Overview page.