Spotify Q4 EPS Jumps to €4.43, MAUs Rise 38M to 751M
Spotify delivered Q4 2025 adjusted EPS of €4.43 versus €2.85 estimate on €4.53B revenue, boosted by its 'Wrapped' campaign and enhanced free tier. Recorded monthly active users soared 38M to 751M, driving operating income up 47% to €701M and spurring a 14% premarket share rally.
1. Fourth-Quarter Financial Results
Spotify posted adjusted EPS of €4.43 for Q4 2025, well above the €2.85 consensus, on revenue of €4.53 billion. The beat was propelled by elevated listener engagement during its annual 'Wrapped' campaign and the rollout of an enhanced free-tier offering.
2. User Growth and Engagement
Monthly active users climbed 11% year-over-year to 751 million, with a record 38 million net additions. Premium subscribers reached 290 million, while introduction of new features and free-tier enhancements drove social sharing and user retention.
3. Profitability and Margins
Operating income increased 47% year-over-year to €701 million, lifting the operating margin to 15.5%. Gross margin improved by 83 basis points to 33.1%, with ad-supported margin expanding 441 basis points to 19.5%.
4. Outlook and Guidance
For Q1 2026, Spotify forecasts €4.50 billion in revenue, slightly below analyst forecasts, but expects operating income of €660 million. The company also implemented a $1 subscription price increase in the U.S., supporting margin expansion.