Q3 2025 Spotify Technology SA Earnings Call Transcript
Key Points
- Spotify Technology SA (SPOT) surpassed 700 million monthly active users, exceeding their guidance.
- The company reported strong growth in revenue, gross margin, and operating income.
- Spotify's multi-format strategy, including music, podcasts, video, and audiobooks, is driving user engagement and retention.
- The global rollout of an enhanced free experience significantly contributed to user growth and engagement.
- Spotify finalized groundbreaking direct license deals, enhancing value for artists, songwriters, rights holders, and the company.
- The advertising business showed only mid-single-digit growth on a constant currency basis, indicating slower progress than expected.
- There is pressure on gross margins, particularly on the premium side, due to shifts in content cost allocation.
- Spotify's ad-supported revenue growth has decelerated, with a focus on programmatic sales taking longer to yield significant results.
- The company anticipates a sequential step down in gross margin in the first quarter of 2026 due to advertising seasonality.
- Price increases in over 150 markets are expected to result in a small amount of churn, impacting subscriber growth.
Good morning, and welcome, everyone, to the Spotify third-quarter 2025 earnings call. Today's conference is being recorded. (Operator Instructions)
At this time, I would like to turn the conference over to Bryan Goldberg, Head of Investor Relations. Please go ahead.
Thanks, operator, and welcome to Spotify's third-quarter 2025 earnings conference call. Joining us today will be Daniel Ek, our CEO; Alex Norstrom, our Co-President and Chief Business Officer; Gustav Soderstrom, our Co-President and Chief Product and Technology Officer; and Christian Luiga, our CFO. We'll start with opening comments from the team and afterwards, we'll be happy to answer your questions.
Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ325. Analysts can ask questions directly into Slido, and all participants can then vote on the questions they find the most relevant.
If for some reason, you don't have access to Slido, you can e-mail Investor Relations at
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
