Spotify Technology (XSWX:SPOT) 1-Year ROIIC % : -42.98% (As of Mar. 2026)


XSWX:SPOT Spotify Technology SA XSWX:SPOT
77 GF Score
Price CHF385.50
GF Value CHF388.20
! 2 Warning Signs
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What is Spotify Technology 1-Year ROIIC %?

Spotify Technology XSWX:SPOT +0.78% 77 1-Year ROIIC % is -42.98 as of Mar. 2026. GuruFocus rates XSWX:SPOT with a GF Score™ of 77/100 and a GF Value™ of CHF388.20. The stock has 2 warning signs investors should review. Among 544 Interactive Media companies, Spotify Technology ranks worse than 76.65% on this metric.

1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year. Spotify Technology's 1-Year ROIIC % for the quarter that ended in Mar. 2026 was -42.98%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Spotify Technology's 1-Year ROIIC % or its related term are showing as below:

XSWX:SPOT's 1-Year ROIIC % is ranked worse than
76.65% of 544 companies
in the Interactive Media industry
Industry Median: 2.045 vs XSWX:SPOT: -42.98

Spotify Technology  (XSWX:SPOT) 1-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Spotify Technology 1-Year ROIIC % Related Terms


Spotify Technology 1-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Spotify Technology's 1-Year ROIIC % 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 1-Year ROIIC % Chart

Spotify Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
1-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -15.10 -259.42 1,128.20 276.03 20.16

Spotify Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
1-Year ROIIC % 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 66.72 22.37 16.81 20.16 -42.98

XSWX:SPOT vs NBIS, BIDU, RDDT: 1-Year ROIIC % Comparison

For the Internet Content & Information subindustry, Spotify Technology's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % 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 1-Year ROIIC % vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's 1-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Spotify Technology's 1-Year ROIIC % falls into.


XSWX:SPOT
77GF Score
Spotify Technology SA XSWX:SPOT
1-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Spotify Technology 1-Year ROIIC % Calculation

Spotify Technology's 1-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:

1-Year ROIIC %=1-Year Incremental Net Operating Profit After Taxes (NOPAT)**/1-Year Incremental Invested Capital
=( 1698.7156 (Mar. 2026) - 1238.8001 (Mar. 2025) )/( 3988.38 (Mar. 2026) - 5975.046 (Mar. 2025) )
=459.9155/-1986.666
=-23.15%***

* 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.

** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 1-Year ROIIC % →
What does a 1-Year ROIIC % of -42.98 mean?
Spotify Technology (XSWX:SPOT) has a 1-Year ROIIC % of -42.98 as of Mar. 2026. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Spotify Technology and its competitors. According to the industry distribution chart, Spotify Technology ranks #417 out of 544 companies in the Interactive Media industry, placing it in the top 76.7%.
Is Spotify Technology's 1-Year ROIIC % too high?
Spotify Technology's current 1-Year ROIIC % is -42.98. Based on the distribution chart, Spotify Technology ranks #417 out of 544 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Spotify Technology has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Spotify Technology's 1-Year ROIIC % compare to NBIS and BIDU?
According to the Interactive Media industry distribution chart, Spotify Technology ranks #417 out of 544 companies for 1-Year ROIIC %. This places Spotify Technology in the lower half of its industry. The industry median 1-Year ROIIC % is 2.05. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year ROIIC % for an Interactive Media company?
The median 1-Year ROIIC % among Interactive Media companies is 2.05, based on 544 companies in the industry. Companies in the top quartile (top 25%) have a 1-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 1-Year ROIIC % 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 1-Year ROIIC % mean?
A high 1-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 1-Year ROIIC % measures the change in earnings as a percentage of change in investment over 1-year. View historical data on Spotify Technology and its competitors. For the Interactive Media industry, the median 1-Year ROIIC % is 2.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spotify Technology's current 1-Year ROIIC % is -42.98. 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?
Spotify Technology (XSWX:SPOT) has a current 1-Year ROIIC % of -42.98. The stock's GF Value™ is CHF388.20, compared to a current price of CHF385.50 — trading 0.7% below its estimated fair value. The current 1-Year ROIIC % is -42.98. Spotify Technology's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year ROIIC % calculated?
1-Year ROIIC % is calculated from a company's financial statements. For Spotify Technology (XSWX:SPOT), the current 1-Year ROIIC % is -42.98 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 (XSWX:SPOT) Overvalued in 2026?

Based on GuruFocus' analysis, Spotify Technology stock appears to be undervalued. The current stock price of CHF385.50 is trading 0.7% below its estimated GF Value™ of CHF388.20.

Key valuation signals for XSWX:SPOT:

  • 1-Year ROIIC %: -42.98
  • GF Value™: CHF388.20 vs. price of CHF385.50 (0.7% below fair value)
  • GF Score™: 77/100 with 2 warning signs

No single metric tells the full story. See the XSWX:SPOT 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.
77GF Score

Get the complete analysis for XSWX:SPOT

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

CHF385.50
Price
CHF388.20
GF Value