Q4 2025 Spotify Technology SA Earnings Call Transcript
Key Points
- Spotify Technology SA (SPOT) achieved its highest quarter ever for Monthly Active Users (MAU) net additions, now serving over 0.75 billion people globally.
- The Wrapped campaign saw record-breaking engagement, with over 300 million users participating, marking a 20% increase from the previous year.
- Spotify Technology SA (SPOT) paid out more than $11 billion to music rights holders in 2025, setting a global record for the highest annual payment from a single source.
- Video podcast consumption on Spotify increased by more than 90% since the launch of the Spotify Partner Program, with over 530,000 video podcast shows now available.
- Spotify Technology SA (SPOT) reported a strong financial performance with total revenue growing 13% year-on-year to EUR4.5 billion, and a gross margin expansion of over 80 basis points.
- The advertising business grew only 4%, which was flat compared to the previous quarter, indicating challenges in accelerating ad revenue growth.
- Despite the positive outlook, the company faces potential headwinds from unfavorable currency movements, resulting in an incremental EUR35 million revenue headwind.
- There is ongoing concern about the impact of AI on the music industry, with questions about how AI-generated content might affect Spotify Technology SA (SPOT)'s business model.
- The company acknowledges the challenge of managing the rapid pace of AI advancements, which could disrupt existing engineering and product practices.
- Spotify Technology SA (SPOT) is facing scrutiny over its approach to AI music, with questions about its policy on AI-generated content and how it plans to differentiate its offerings in a competitive landscape.
Good day, and welcome to Spotify's fourth-quarter 2025 earnings call and webcast. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Bryan Goldberg, Head of Investor Relations. Thank you.
Thanks, operator, and welcome to Spotify's fourth-quarter 2025 earnings conference call. Joining us today will be our Founder and Executive Chairman, Daniel Ek; our Co-CEOs, Alex Norstrom and Gustav Soderstrom; and our CFO, Christian Luiga. 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 Spotify Earnings Q4 '25.
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 [email protected], and we'll add in your question.
Before we begin, let me
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