TLDR
- Spotify’s Q3 2025 profit rose 200% to €899M, beating analyst expectations.
- Revenue climbed 7.1% year-over-year to €4.27B.
- Margins rebounded to 31.6%, exceeding guidance.
- Monthly active users reached 713M, surpassing forecasts.
- CEO Daniel Ek to step down as co-CEOs take charge in 2026.
Spotify Technology S.A. (NYSE: SPOT) stock traded at $625.01, down over 5% after market open and 2.89% in pre-market after releasing its third-quarter 2025 earnings.
Spotify Technology S.A., SPOT
The streaming giant reported robust growth in revenue and profit, outperforming Wall Street estimates while outlining a leadership transition at year-end.
Profit Surges as Margins Rebound
Spotify posted a profit of €899 million, or €3.28 per share, up from €300 million (€1.45 per share) in the same quarter last year. Analysts had expected €2.14 per share, marking a substantial earnings beat. Revenue rose 7.1% year-over-year to €4.27 billion, surpassing expectations of €4.23 billion.
Spotify Q3 2025 results:
—Total revenue: +7% to €4.3B
—Gross profit: +9% to €1.35B
—Operating income: +28% to €582M
—FCF: +13% to €806M
—Total MAUs: +11% to 713M
—Op. margin: 13.6% [+230bps YoY]$SPOT: +4% Pre-Market pic.twitter.com/IMVPd7MGNA— The Transcript (@TheTranscript_) November 4, 2025
Gross margins strengthened to 31.6%, up from 31.5% in Q2 and above the company’s guidance. The rebound was driven by higher ad revenue and cost control, signaling a successful turnaround following a weaker second quarter.
User Growth and Market Expansion
Spotify’s monthly active users (MAUs) climbed to 713 million, exceeding projections of 711 million. Premium subscribers grew to 281 million, while ad-supported users increased to 446 million, both reflecting healthy engagement.
The company continues to benefit from price increases, product diversification, and AI-powered recommendations, which have enhanced monetization across regions. Spotify’s stock has gained nearly 70% over the past year, supported by these strategic shifts.
Leadership Transition Ahead
Founder and CEO Daniel Ek will step down at the end of 2025, transitioning to executive chairman effective January 1, 2026. Gustav Söderström and Alex Norström will assume co-CEO roles, formalizing a leadership structure that has been in practice since 2023.
Wall Street has viewed the move as a step toward stability and operational continuity. Ek emphasized in the earnings call that the company remains “well-positioned to deliver growth and improving margins in 2025.”
Outlook for Q4 and Beyond
Spotify forecasts Q4 revenue of €4.5 billion, slightly below analyst expectations of €4.57 billion due to currency pressures. The company projects MAUs to reach 745 million and premium subscribers to total 289 million.
Gross margin is expected to rise to 32.9%, while operating income is projected at €620 million, ahead of consensus. Analysts expect a U.S. price increase in late 2025 or early 2026, potentially bolstering margins next year.
Spotify’s recent partnership with Netflix (NFLX) to stream select video podcasts such as The Bill Simmons Podcast and The Rewatchables is expected to expand its reach and diversify content revenue.
Performance Snapshot
As of November 3, 2025, Spotify’s stock has returned 43.97% year-to-date and 67.51% over the past year, outperforming the S&P 500’s 16.5% YTD return. Over three years, Spotify shares have surged 798.06%, reflecting investor confidence in its growth trajectory and profitability roadmap.
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