SPOTSpotify Technology S.A.
Earnings Recap
• Reported GAAP EPS of $3.50 up 218.18% YoY • Reported revenue of $4.53B up 8.19% YoY • Spotify expects Q2 2026 Total MAUs to reach 778 million, Total Premium Subscribers to be 299 million, and Total Revenue to reach 4.8 billion. Gross Margin is projected at 33.1% and Operating Income at 630 million.
Bullish
Spotify achieved strong user growth with 761 million MAUs and 293 million Premium Subscribers. The company also reported record Gross Margin and Operating Income, alongside a Q1 record Free Cash Flow of 824 million.
Bearish
Spotify experienced a 5% year-over-year decline in Ad-Supported Revenue and a 102 basis point drop in Ad-Supported Gross Margin. Unfavorable currency movements and volatile Social Charges also impacted Spotify's financial performance.