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SPOT

Spotify Technology S.A.

SPOT

Spotify Technology S.A. • NYSE
$598.87 ▲ 1.04% (+6.18)
Market Cap $122.59 B
52w High $785.00
52w Low $443.21
Dividend Yield 0%
P/E 76.88
Volume 810.05K
Outstanding Shares 204.70M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $4.272B ▲ $769M ▼ $899M ▲ 21.044% ▲ $4.36 ▲ $990.761M ▲
Q2-2025 $4.193B ▲ $914M ▲ $-86M ▼ -2.051% ▼ $-0.42 ▼ $82M ▼
Q1-2025 $4.19B ▼ $817M ▼ $225M ▼ 5.37% ▼ $1.1 ▼ $363M ▼
Q4-2024 $4.37B ▲ $909.583M ▲ $378.048M ▲ 8.652% ▲ $1.81 ▲ $556.257M ▲
Q3-2024 $3.988B $786M $300M 7.523% $1.49 $437M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $9.091B ▲ $14.689B ▲ $6.91B ▲ $7.779B ▲
Q2-2025 $8.361B ▲ $13.492B ▲ $6.852B ▲ $6.64B ▲
Q1-2025 $7.897B ▲ $12.661B ▲ $6.427B ▼ $6.234B ▲
Q4-2024 $7.448B ▲ $12.005B ▲ $6.48B ▲ $5.525B ▲
Q3-2024 $6.075B $10.544B $5.915B $4.629B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $896.927M ▲ $846.593M ▲ $-448.829M ▼ $-100M ▼ $301.012M ▲ $823.429M ▲
Q2-2025 $-86M ▼ $709M ▲ $-404M ▼ $11M ▼ $142M ▼ $699M ▲
Q1-2025 $225M ▼ $539M ▼ $-314M ▲ $126M ▼ $238M ▲ $533M ▼
Q4-2024 $367M ▲ $883M ▲ $-1.198B ▼ $244M ▲ $93M ▼ $877M ▲
Q3-2024 $300M $715M $-82M $99M $634M $711M

Five-Year Company Overview

Income Statement

Income Statement Spotify has shifted from years of small operating losses to clearly profitable operations, while still growing revenue at a solid pace. Gross profit has expanded faster than sales, which suggests better pricing power, mix shift toward higher-margin areas (like podcasts/ads), and tighter cost control. Operating and net income have moved from red to comfortably positive, indicating meaningful operating leverage as the platform scales. The main watchpoint is whether this improved profitability is sustainable in a highly competitive, royalty-heavy business where content and talent costs can rise quickly.

Balance Sheet

Balance Sheet The balance sheet looks much stronger than a few years ago, with total assets and especially cash holdings rising significantly. Debt remains manageable relative to the company’s size and cash position, and equity has built up as profits have turned positive. This means Spotify now has a more solid financial cushion to fund content deals, product development, and potential downturns. The key risk is that future aggressive investments or acquisitions could erode this improved balance if not carefully managed.

Cash Flow

Cash Flow Cash generation has improved markedly: operating cash flow has grown from nearly break-even to robustly positive, and free cash flow closely tracks that improvement. Capital spending needs are relatively light for a global platform business, which helps convert earnings into cash. This healthier cash profile gives Spotify flexibility to invest in content, technology, and new audio categories without relying heavily on borrowing or new equity. The main question going forward is whether cash flow remains this strong as the company experiments with new products and potentially higher content spend.

Competitive Edge

Competitive Edge Spotify holds a leading global position in music and audio streaming, supported by a very large user base and strong brand recognition. Its recommendation engine and personalized playlists create a “stickiness” that keeps users engaged and makes it harder for rivals to lure them away. The freemium model, broad device compatibility, social features, and expansion into podcasts and audiobooks deepen user relationships and increase time spent on the platform. However, it still faces powerful ecosystem competitors like Apple and Amazon, which can bundle music and audio with hardware or other services, putting pressure on margins and user acquisition costs.

Innovation and R&D

Innovation and R&D Innovation is a core strength: Spotify has invested heavily in machine learning, AI personalization, and a scalable back-end that supports a highly tailored user experience. New features like AI-powered DJs, smart playlists, and programmatic ad tools aim to boost engagement and improve monetization, particularly on the advertising side. The push into podcasts, audiobooks, and creator tools shows a clear strategy to become a broad audio platform rather than just a music app, potentially lifting margins if owned or exclusive content scales well. The risk is that some of these bets—especially in podcasts and audiobooks—are still proving out economically and could take longer or cost more than expected to deliver strong returns.

Summary

Overall, Spotify has moved from a growth-at-any-cost profile toward a more balanced model that combines solid revenue growth with real profitability and strong cash generation. The financial statements show clear operating leverage and a healthier balance sheet, giving the company more strategic flexibility. Its competitive moat rests on data, personalization, brand, and a growing ecosystem of audio content and creator tools, though it operates in a market dominated by very deep-pocketed competitors. The central questions for the future are whether Spotify can keep improving margins despite high content and royalty costs, and how successfully it can monetize new audio formats and AI-driven experiences without overextending financially.

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