Spotify Reports Strong User Growth and Earnings Beat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2026
0mins
Should l Buy SPOT?
Source: Benzinga
Spotify's stock fell 5.01% as it crossed below the 20-day SMA, despite positive market conditions with the Nasdaq-100 and S&P 500 both up.
The company reported a significant increase in monthly active users, reaching 751 million in Q4 2025, surpassing estimates. Additionally, Spotify's earnings per share of €4.43 exceeded expectations of €2.74, with revenue slightly above forecasts at €4.53 billion. This strong performance, particularly in ad-supported users, indicates robust demand and market leadership.
Despite the stock's decline, the strong user growth and financial performance suggest a solid foundation for future growth, with expectations of reaching 759 million users in 2025.
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Analyst Views on SPOT
Wall Street analysts forecast SPOT stock price to rise
21 Analyst Rating
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 544.880
Low
525.00
Averages
750.79
High
900.00
Current: 544.880
Low
525.00
Averages
750.79
High
900.00
About SPOT
Spotify Technology SA a Luxembourg-based company, which offers digital music-streaming services. The Company enables users to discover new releases, which includes the latest singles and albums; playlists, which includes ready-made playlists put together by music fans and experts, and over millions of songs so that users can play their favorites, discover new tracks and build a personalized collection. Its users can either select Spotify Free, which includes only shuffle play or Spotify Premium, which encompasses a range of features, such as shuffle play, advertisement free, unlimited skips, listen offline, play any track and audio. The Company operates through a number of subsidiaries, including Spotify LTD and is present in over 20 countries. Its service offers a music listening experience without commercial breaks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Transaction Uncertainty: While Paramount's offer is more attractive, the complexity and regulatory hurdles surrounding the deal remain, especially considering Paramount's smaller size may face fewer regulatory challenges, adding uncertainty to the transaction's success.
- Financial Flexibility: By not acquiring Warner Bros., Netflix retains greater financial flexibility, avoiding the heavy debt burden that could have deteriorated its financial health, thus providing more options for future investments and expansions.
- Changing Competitive Landscape: The merger of Paramount and Warner Bros. could create a new competitor, and while Netflix still holds an advantage in content acquisition, the future market competition will intensify, necessitating continued innovation from Netflix to maintain its market leadership.
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- Cash Flow Assurance: The acquisition includes a daily ticking fee of $0.25 per share and a $7 billion regulatory termination fee, adding complexity to the transaction but also providing cash flow assurances that enhance the deal's attractiveness to investors.
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