Spotify stock price soars, earnings surpass expectations, user growth remains strong

LootboxPhobia · 2026-02-10T16:15:35+00:00

Spotify's Q4 earnings report exceeded analyst expectations, with the stock price rising over 12%. Earnings per share were €4.43, revenue was €4.53 billion, and user growth was strong, with MAUs reaching 751 million. Continued growth is expected in 2026, with an improved financial position.

LootboxPhobia

2026-02-10 16:15:35

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Investing.com - Spotify Technology (NYSE:SPOT) stock surged more than 12% in pre-market trading on Tuesday after the streaming giant released its Q4 earnings, which significantly exceeded analyst expectations thanks to strong user growth and improved profitability.

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The audio streaming platform reported a Q4 earnings per share of €4.43, well above the analyst consensus of €2.85. Revenue was €4.53 billion, slightly higher than the consensus estimate of €4.52 billion, representing a 7% year-over-year increase (13% at constant currency). Monthly active users (MAUs) reached 751 million, surpassing analyst expectations of 745.24 million, up 11% year-over-year.

In its earnings report, the company stated: “We are pleased with our performance entering 2026 and believe we are well-positioned to grow and improve margins.” Spotify added a record 38 million MAUs this quarter, exceeding its own forecast of 32 million.

Paid subscription users increased 10% year-over-year to 290 million, with a net addition of 9 million this quarter. Gross margin rose to 33.1%, up 83 basis points year-over-year, while operating revenue grew 47% to €701 million, with a profit margin of 15.5%.

For Q1 2026, Spotify expects revenue of €4.5 billion, slightly below the analyst consensus of €4.57 billion. However, the company anticipates MAUs will reach 759 million, higher than the forecast of 752.45 million.

The company noted: “In 2025, we paid over $11 billion to the music industry — the largest annual payout to music creators in history,” emphasizing its ongoing investment in the creative ecosystem.

Free cash flow for the quarter was €834 million, bringing the total for 2025 to €2.9 billion, demonstrating Spotify’s strengthening financial position despite currency headwinds that slowed revenue growth by approximately 580 basis points.

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