The earnings call reflected strong user and subscriber growth, significant engagement improvements, and successful content expansion, particularly in video. However, challenges in the advertising business and unexpected operating income miss due to social charges and currency impacts presented notable concerns.

Company Guidance -

Q3 2025

During Spotify's second quarter 2025 earnings call, the company reported notable metrics and guidance for future growth. The quarter saw a substantial increase in user growth, with subscribers increasing by more than 30% compared to the first half of 2024, and the company achieving over 100 million subscribers in Europe. Spotify's monthly active users (MAU) reached 696 million, exceeding guidance by 7 million, and subscriber count grew to 276 million, surpassing expectations by 3 million. Despite the robust growth in user engagement, Spotify's advertising business underperformed, with a currency-neutral growth of only 5% year-over-year, prompting a strategic recalibration to accelerate its contribution. Gross margin stood at 31.5%, aligning with guidance, and operating income, although below guidance by EUR 133 million, was influenced by unforeseen social charges. Looking ahead, Spotify anticipates a slight underperformance in Q3 compared to expectations, but remains optimistic about reaching 710 million MAU and 281 million subscribers, while maintaining a stable EUR 4.2 billion revenue forecast, despite currency headwinds. The company reaffirmed its commitment to long-term strategic initiatives, emphasizing lifetime value over short-term gains, and highlighted plans for capital allocation including a $2 billion share repurchase authorization.

Record Subscriber Growth

Spotify's subscriber growth exceeded expectations, with 8 million net subscribers added, bringing the total to 276 million, up 12% year-on-year and 3 million ahead of guidance.

User Engagement Strength

User engagement continues to improve, with 696 million MAU, exceeding guidance by 7 million. This reflects the success of content expansion and product enhancements.

Video Content Growth

Video podcasts are growing 20x faster than audio-only consumption, with 350 million users streaming video podcasts, a 65% increase year-over-year.

Positive Gross Margin Expansion

Gross margin expanded by approximately 230 basis points year-on-year, driven by premium revenue growth and improved advertising margins.

Expansion of AI and Personalization

Spotify has significantly improved user engagement with AI-driven features like DJ and AI playlists, leading to a nearly 45% increase in DJ streams globally.

Spotify (SPOT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SPOT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 28, 2025	2025 (Q3)	2.25 / -	1.678	―	―	―
Jul 29, 2025	2025 (Q2)	2.26 / -0.49	1.539	-131.58% (-2.03)
Apr 29, 2025	2025 (Q1)	2.54 / 1.24	1.123	10.31% (+0.12)
Feb 04, 2025	2024 (Q4)	2.30 / 2.04	-0.417	588.89% (+2.45)
Nov 12, 2024	2024 (Q3)	1.95 / 1.68	0.382	339.39% (+1.30)
Jul 23, 2024	2024 (Q2)	1.22 / 1.54	-1.794	185.81% (+3.33)
Apr 23, 2024	2024 (Q1)	0.72 / 1.12	-1.342	183.62% (+2.47)
Feb 06, 2024	2023 (Q4)	-0.43 / -0.42	-1.62	74.29% (+1.20)
Oct 24, 2023	2023 (Q3)	-0.26 / 0.38	-1.146	133.33% (+1.53)
Jul 25, 2023	2023 (Q2)	-0.73 / -1.79	-0.984	-82.35% (-0.81)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

SPOT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 29, 2025	$700.98	$620.01	-11.55%
Apr 29, 2025	$597.73	$576.94	-3.48%
Feb 04, 2025	$549.08	$621.77	+13.24%
Nov 12, 2024	$410.19	$419.39	+2.24%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.