Spotify TechnologyMEX:SPOT N -1.82%80 Gross Margin % is 32.98% as of Mar. 2026, which is 29% above its 10-year median of 25.61. GuruFocus rates MEX:SPOT N with a GF Score™ of 80/100 and a GF Value™ of MXN8,709.51 (Fairly Valued). The stock has 2 warning signs investors should review. Among 497 Interactive Media companies, Spotify Technology ranks worse than 80.28% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Spotify Technology had a gross margin of 32.98% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Spotify Technology Gross Margin % Related Terms
Spotify Technology Gross Margin % Historical Data
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The historical data trend for Spotify Technology's Gross Margin % 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.
MEX:SPOT N vs NBIS, BIDU, RDDT: Gross Margin % Comparison
For the Internet Content & Information subindustry, Spotify Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Spotify Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Spotify Technology's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Spotify Technology (MEX:SPOT N) has a Gross Margin % of 32.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Spotify Technology and its competitors. This is 29% above median its historical median of 25.61. Over the past decade, Spotify Technology's Gross Margin % has ranged from 13.58 to 32.32. According to the industry distribution chart, Spotify Technology ranks #399 out of 497 companies in the Interactive Media industry, placing it in the top 80.3%.
Is Spotify Technology's Gross Margin % too high?
Spotify Technology's current Gross Margin % of 32.98% is 29% above median its 10-year median of 25.61. Over the past 10 years, this metric has ranged from a low of 13.58 to a high of 32.32. The Interactive Media industry median Gross Margin % is 62.58. Spotify Technology's value of 32.98% is 47.3% below this industry median. Based on the distribution chart, Spotify Technology ranks #399 out of 497 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Spotify Technology has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's Gross Margin % compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #399 out of 497 companies for Gross Margin %. This places Spotify Technology in the lower half of its industry. The industry median Gross Margin % is 62.58. Spotify Technology's value of 32.98% is 47.3% below this benchmark. Historically, Spotify Technology's own Gross Margin % has ranged from 13.58 to 32.32 over the past decade. While the company's 10-year median is 25.61 vs. the industry median of 62.58, Spotify Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Spotify Technology's current Gross Margin % of 32.98% is 47.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Spotify Technology and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current Gross Margin % is 32.98%, which is 29% above median its own 10-year median of 25.61. 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 (MEX:SPOT N) is currently considered Fairly Valued. The stock's GF Value™ is MXN8,709.51, compared to a current price of MXN7,843.09 — trading 9.9% below its estimated fair value. The current Gross Margin % is 32.98%, which is 29% above median its 10-year median of 25.61 and 47.3% below the Interactive Media industry median of 62.58. Spotify Technology's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Spotify Technology (MEX:SPOT N), the current Gross Margin % is 32.98% 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 (MEX:SPOT N) Overvalued in 2026?
Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued.
The current stock price of MXN7,843.09 is trading 9.9% below its estimated GF Value™ of MXN8,709.51.
GuruFocus considers Spotify Technology to be Fairly Valued.
Key valuation signals for MEX:SPOT N:
Gross Margin %: 32.98% (29% above median its 10-year median of 25.61)
GF Value™: MXN8,709.51 vs. price of MXN7,843.09 (9.9% below fair value)
Industry Position: 47.3% below the Interactive Media median (#399 of 497)
No single metric tells the full story. See the MEX:SPOT N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
80GF Score
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