Spotify Technology S.A.

Spotify Technology S.A.

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Market Cap$102.44B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Spotify Technology S.A.Spotify Technology S.A.32.3-34%5.70.2

Earnings Call Q1 2026

April 28, 2026 - AI Summary

Q1 momentum was strong across growth, profitability, and cash generation - MAUs: +10M to 761M, +12% YoY CC, slightly above guidance (+2M). - Subscribers: +3M net adds to 293M (in line with guidance). - Revenue: €4.5B, +14% YoY (accelerating vs 13% in Q4); Premium revenue ~+15% YoY, driven by subscriber growth + ARPU +5.7% YoY. - Ads revenue: ~+3% YoY, with continued channel mix shifts. - Margin & operating profit: Gross margin 33% (≈ +20 bps vs guidance, +133 bps YoY). Operating margin 15.8% (operating income €715M, €55M above guidance), driven largely by other operating income favorability (social charges tied to share price). - Cash flow: Free cash flow €824M, stronger than typical Q1 due to timing.
Q2 outlook implies continued growth and slightly higher margin, with some investment noise - MAUs: forecast 778M (+17M vs Q1). - Subscribers: forecast 299M (net +6M in Q2), modestly below the prior-year quarter outperformance (prior-year benefited from items like iOS adjustment). - Revenue: forecast ~€4.8B (~+15% YoY). - ARPU: guided +7% to +7.5% YoY, supported by “recently announced pricing action,” partially offset by laps of Benelux pricing actions from last year. - Gross margin: forecast 33.1% (~+160 bps YoY). - Operating income: guided €630M (lower vs Q1 guidance beat, reflecting timing of marketing, and R&D for strategic AI initiatives).
Primary strategy: AI-led personalization + more user control to drive engagement, retention, and LTV - Management reiterated a retention framework: more days in month, more devices, and more content types (3 levers believed to compound into lifetime value). - Highlighted AI product progress: - IDJ adoption: 94M subscribers, closing on 100M; billions of hours engagement. - Song DNA: 52M users in ~4 weeks (fast adoption signal). - Taste Profile (beta): user can view/edit how Spotify models their listening across music/podcasts/audiobooks. - Prompted Playlists expanded beyond music into podcasts. - More “interactive/multiplayer” momentum (e.g., Jam >100M monthly listening hours, usage doubled YoY). - Claim: AI is increasing shipping speed and/or lowering cost per feature (though compute inference costs increased, contributing to OpEx).

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$628.04

Target Price by Analysts

28.8% upsideSpotify Technology S.A. Target Price DetailsTarget Price
$477.77

Current Fair Value

2% downside

Overvalued by 2% based on the discounted cash flow analysis.

Share Statistics

Market cap$102.44 Billion
Enterprise Value$98.41 Billion
Dividend Yield$- (-)
Earnings per Share$10.77
Beta1.55
Outstanding Shares205,716,853

Return

Return on Equity33.78%ROE
Return on Assets20.61%
Return on Invested Capital28.46%

Valuation & Multiples

P/E Ratio32.28P/E Ratio
PEG14.3PEG
Price to Sales5.74Price to Sales
Price to Book Ratio12.83Price to Book Ratio
Enterprise Value to Revenue5.6
Enterprise Value to EBIT40.92
Enterprise Value to Net Income36
Total Debt to Enterprise0.01
Debt to Equity0.15Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 5, 2026
EPS Estimate
$3.68
Average shareholder expectation
Revenue Estimate
-
Average shareholder expectation

Next Earnings Call

Expected Date
July 28, 2026
EPS Estimate
$3.31
Average shareholder expectation
Revenue Estimate
$5.57 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8014▲ 0.66%
Total Calls7,128,516▲ 8.24%
Total Puts5,712,916▲ 9.13%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %65.17%▼ 0.85%
Total Invested$65.01B▼ 17.38%
Investors Holding1,350▼ 40.00%

ESG Score

No data

About Spotify Technology S.A.

CEO: Daniel Ek

Relevant Senate Committees

Joint Committee on Taxation

This committee's expertise in tax legislation and official 'revenue estimates' directly influences corporate tax structures and policy, which are crucial for a global company like Spotify, affecting its financial planning and profitability.

Finance

As the primary committee for taxation and trade, its decisions on corporate tax policy, international tax structures, and potential tariffs can directly and significantly impact Spotify's profitability, global operations, and valuation.

Judiciary

This committee's oversight of antitrust laws, intellectual property (copyright for music and podcasts), and M&A reviews is highly relevant and directly impacts Spotify's business model, content licensing, and potential growth strategies.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, 'Big Tech' (privacy, data security, net neutrality), and telecommunications, all of which are critical regulatory areas directly impacting Spotify's core business model and operations.