Spotify Technology (LTS:0SPT) EBIT: €2,863 Mil (TTM As of Mar. 2026)


LTS:0SPT Spotify Technology SA LTS:0SPT
70 GF Score
Price €402.00
GF Value €432.70
Valuation Fairly Valued
! 2 Warning Signs
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What is Spotify Technology EBIT?

Spotify Technology LTS:0SPT -1.11% 70 EBIT is €2,863 Mil as of Mar. 2026. GuruFocus rates LTS:0SPT with a GF Score™ of 70/100 and a GF Value™ of €432.70 (Fairly Valued). The stock has 2 warning signs investors should review.

Spotify Technology's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €944 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €2,863 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Spotify Technology's annualized ROC % for the quarter that ended in Mar. 2026 was 39.20%. Spotify Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 908.78%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Spotify Technology's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.87%.


Spotify Technology  (LTS:0SPT) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Spotify Technology's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2860 * ( 1 - 23.05% )/( (6845 + 4382)/ 2 )
=2200.77/5613.5
=39.20 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Spotify Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3776/( ( (422 + max(-3915, 0)) + (409 + max(-4027, 0)) )/ 2 )
=3776/( ( 422 + 409 )/ 2 )
=3776/415.5
=908.78 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(536 + 0 + 111) - (3759 + 711 + 92)
=-3915

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(463 + 0 + 136) - (3775 + 750 + 101)
=-4027

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Spotify Technology's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=2863/73952.337
=3.87 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Spotify Technology EBIT Related Terms


Spotify Technology EBIT Historical Data

* Premium members only.

The historical data trend for Spotify Technology's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Spotify Technology EBIT Chart

Spotify Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 289.00 -329.00 -467.00 1,377.00 2,255.00

Spotify Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 336.00 56.00 835.00 1,028.00 944.00

LTS:0SPT vs NBIS, BIDU, RDDT: EBIT Comparison

For the Internet Content & Information subindustry, Spotify Technology's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Spotify Technology EV-to-EBIT vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Spotify Technology's EV-to-EBIT falls into.


LTS:0SPT
70GF Score
Spotify Technology SA LTS:0SPT
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Spotify Technology EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,863 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €2,863 Mil mean?
Spotify Technology (LTS:0SPT) has a EBIT of €2,863 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Spotify Technology.
Is Spotify Technology's EBIT too high?
Spotify Technology's current EBIT is €2,863 Mil. Overall, Spotify Technology has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's EBIT compare to NBIS and BIDU?
Spotify Technology's EBIT of €2,863 Mil can be compared against companies in the Interactive Media industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Interactive Media company?
A good EBIT depends on the Interactive Media industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Spotify Technology. Spotify Technology's current EBIT is €2,863 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spotify Technology stock overvalued right now?
Based on GuruFocus' analysis, Spotify Technology (LTS:0SPT) is currently considered Fairly Valued. The stock's GF Value™ is €432.70, compared to a current price of €402.00 — trading 7.1% below its estimated fair value. The current EBIT is €2,863 Mil. Spotify Technology's overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Spotify Technology (LTS:0SPT), the current EBIT is €2,863 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Spotify Technology (LTS:0SPT) Overvalued in 2026?

Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued. The current stock price of €402.00 is trading 7.1% below its estimated GF Value™ of €432.70. GuruFocus considers Spotify Technology to be Fairly Valued.

Key valuation signals for LTS:0SPT:

  • EBIT: €2,863 Mil
  • GF Value™: €432.70 vs. price of €402.00 (7.1% below fair value)
  • GF Score™: 70/100 with 2 warning signs

No single metric tells the full story. See the LTS:0SPT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Spotify Technology Business Description

Address Regeringsgatan 19, Stockholm, SWE, 111 53
Spotify is the leading global music streaming service, with over 750 million monthly active users and nearly 300 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from subscribers, who pay a monthly fee to access a music library that includes most of the most popular songs ever recorded, including all from the major record labels. The firm also offers access to audiobooks and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog, but cannot customize a similar on-demand experience.
70GF Score

Get the complete analysis for LTS:0SPT

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€402.00
Price
€432.70
GF Value