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$107.0B
Market Cap
47.1
P/E
1.42
PEG
128.0%
ROCE
31.9%
ROE
0.24
D/E
12.8%
OPM
-24.7%
% from 52W High
40
α RS
🔍 SPOT is showing a high-conviction setup because it matches 12 of 39 tracked screener presets, Sector RRG has Communication Services in the Leading quadrant with the trail still strengthening, and an ECS of 74.5 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 12/39 · Communication Services in Leading quadrant · ECS 74.5
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🌏 Global Investor Returns
Currency-adjusted total returns for SPOT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers online and offline streaming access to its catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly to end users and partners. The Ad-Supported segment provides limited on-demand online access to its catalog of music and online and offline access to its catalog of podcasts on computers, tablets, mobile devices, and other smart devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is headquartered in Stockholm, Sweden.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding SPOT
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 67.8K $32.9M 0.26% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
€4.8B
+15% YoY
Operating Income
€655M
+61% YoY
Operating Margin
13.7%
+4.0pp YoY
Net Income
€545M
Swing from -€86M
What Went Right
  • Subscribers reached 300 million, 1 million above guidance, with 7 million net adds.
  • Gross margin hit a record 33.4%, beating guidance by 30bps and up 193bps YoY.
  • Automated ad channels reached nearly 40% of ad-supported revenue, up from ~30% in Q1, and active advertisers grew 60% YoY.
  • Reserved ticketing drove ~100,000 tickets reserved, with some tours selling through 100% of allocations.
What to Watch
  • MAU net adds of 16 million were 1 million below forecast, and Q3 MAU guidance embeds deliberate friction in emerging-markets free service.
  • Ad-supported revenue grew only 3% YoY, with declines in the direct sales channel offsetting automated channel strength.
  • Q3 gross margin is guided down to 32.9% from 33.4% on new product investments, marketing, and an annual regulatory fee charge.
  • Operating expenses are temporarily elevated in Q2 and Q3 due to ~€200M incremental full-year marketing and AI spend.
Management Guidance
  • Q3 revenue of approximately €5 billion, or 14% growth.
  • Q3 operating income of €670 million.
  • Q3 gross margin of 32.9%.
  • Q3 MAU of 788 million; Q3 subscribers of 305 million.
  • Ads business expected to inflect toward double-digit growth in H2 2026.
  • Q4 operating expense growth expected to moderate; FY 2026 headcount remains flat.
Investor Lens
The thesis is stronger after this call: subscriber scale at 300M, record gross margin, and early traction in AI, ads automation, and Reserved support the 2030 targets. The slower MAU outlook reflects an intentional, monetization-first shift in emerging markets rather than competitive weakness. The key proofs ahead are the promised H2 ads inflection, continued add-on ARPU growth, and gross margin staying near record levels despite reinvestment.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: 300M subs and record 33.4% gross margin.
Revenue
Total revenue was €4.8 billion, up 15% YoY on a constant-currency basis, accelerating from 14% in Q1. Premium revenue grew ~16% YoY, while ad-supported revenue grew 3% YoY with automated channels nearing 40% of ad revenue.
Profitability
Operating income came in at €655 million, above guidance of €630 million, with operating margin of 13.7%. Net income swung to €545 million from a -€86 million loss in the prior-year quarter; diluted EPS was €2.61.
Margins
Gross margin reached a record 33.4%, up 193bps YoY and 30bps above guidance, helped by timing, scale, and a small one-time benefit from a Canadian digital services tax reversal. Operating margin expanded to 13.7% despite elevated marketing and AI-related expense.
Balance Sheet
Cash and cash equivalents were €5.9 billion, with total cash and short-term investments of €9.4 billion and no debt other than lease liabilities. Free cash flow was €797 million in Q2, up 14% YoY, and share buybacks totaled $662 million year-to-date through August 3.
Key Risks
Emerging-market product tweaks could slow MAU growth and free-tier engagement near term. Ad revenue remains subdued at 3% growth as direct sales decline, though management expects double-digit growth in H2. Q3 gross margin is guided lower to 32.9% due to investments and a regulatory fee charge.
Outlook
Q3 revenue is expected at approximately €5 billion (+14% YoY), with operating income of €670 million and gross margin of 32.9%. Management reiterated healthy full-year 2026 MAU and subscriber growth, stronger free cash flow, and moderating OpEx growth in Q4.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Revenue grew 15% year-over-year with record gross margin and Premium subscribers surpassing 300 million. Strong free cash flow and ongoing investments in AI, product innovation, and ad tech position the business for continued growth and margin expansion.
Q1 2026 Q1 2026 2026-04-28
Q1 2026 saw strong revenue and margin growth, with MAUs at 761 million and robust subscriber gains. AI-driven product innovation and a new fitness hub fueled engagement, while disciplined capital allocation and a strong cash position support continued investment and profitability.
Q4 2025 Q4 2025 2026-02-10
Q4 2025 saw record user growth, strong revenue and margin expansion, and robust free cash flow. Leadership transitioned smoothly, AI-driven innovation accelerated, and guidance points to continued margin and cash flow improvement in 2026.
Q3 2025 Q3 2025 2025-11-04
MAU surpassed 700 million, beating guidance, with strong engagement and subscriber growth. Revenue, gross margin, and operating income exceeded expectations, while new licensing deals and product innovations set up continued growth. Leadership transition to co-CEOs in January.
Q2 2025 Q2 2025 2025-07-29
Q2 2025 saw robust user and subscriber growth, with revenue up 15% year-on-year and gross margin expanding to 31.5%. Ads business lagged but automation and programmatic efforts are underway, while strong liquidity supports growth and a $2B share buyback.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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