Muhammad Selim Kolkata | Anadolu | Getty Images
spotifyshares soared 15% as the music streaming platform added more users and strengthened its capabilities in new markets.
Here’s how LSEG’s estimates compare to the company’s performance.
Earnings per share: 4.43 euros vs. 2.74 euros expected Revenue: 4.53 billion euros vs. 4.52 billion euros expected
Fourth-quarter revenue increased 7% year-over-year.
The Swedish company said its monthly active users rose 11% year-over-year to 751 million, exceeding the 744.7 million expected by analysts surveyed by FactSet. The number of paid members increased by 10% from the previous year to 290 million.
Spotify attributes the large user increase to growth in Latin America, Europe, and other regions, as well as improvements to its mobile free tier. Co-CEO Alex Norstrom said the company added the most users ever during the quarter.
The streamer’s 476 million ad-supported users also exceeded expectations, beating StreetAccount’s forecast of 468.9 million.
The company also launched audiobooks in new markets in the fourth quarter, rolled out music videos for premium users, and introduced more artificial intelligence tools.
Spotify also increased prices for premium users in the U.S., Estonia, and Latvia this month. The company previously increased U.S. subscription prices in 2024 and 2023.
The music platform announced that 2025’s Spotify Wrapped, which analyzed users’ listening time and most popular songs at the end of the year, was its most successful to date. Spotify says more than 300 million users have used the feature and it has garnered more than 630 million shares on social media.
Net income increased to 1.17 billion euros ($1.39 billion), or 4.43 euros per share, from 367 million euros (1.76 euros per share) in the same period last year.
Looking ahead, Spotify expects monthly active users to increase by 8 million to 759 million this quarter, beating FactSet’s estimate of 752.4 million. Total premium subscribers are expected to reach 293 million.
Spotify expects a 670 basis point year-over-year headwind from currency exchange rates, with revenue totaling 4.5 billion euros. It fell short of the expected 4.58 billion euros.
