SPOT Communication Services

Spotify Technology S.A.

$600.09+1.02%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Communication Services
Industry: Internet Content & Information
Country: Sweden
Market cap: 123.4B USD
Enterprise value: 100.2B USD
Full-time employees: 7,000

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: its share price swings more than most peers’ (beta 1.59 vs a peer median of 0.65)bigger price swings (beta 1.59 vs peers 0.65)
About average: risk (debt, liquidity and share-price swings)risk

Ranks #160 of 454 communication services companies (top 36%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense EUR 835M vs EUR 439M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years Spotify Technology recorded EUR 835M of stock-based pay expense and spent EUR 439M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Spotify Technology recorded EUR 835M of stock-based pay expense and spent EUR 439M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Operating margin at a 6-year high. 13% in 2025, the best of the last 6 years.
Spotify Technology kept 13% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Financials may be out of date. Latest financial period ended 10 months ago.
The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from EUR 7.9B in 2020 to EUR 17.2B in 2025.
Spotify Technology's fiscal-year revenue rose in each of the five years to 2025, from EUR 7.9B to EUR 17.2B.

StockQuotient Score

58/ 100

Oct 5 59 → Nov 4 58 (-1)

Valuation

Is the price right?

25/100

Weak

3/3 inputs reported · High confidence

Since last year: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ FCF yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield2.0%

SEC filings (IFRS mapped) · 12 months to Dec 2025 · EUR→USD at the current rateReported value30% base weight · Z-score -0.32Sector median: 0.0294 · MAD: 0.0294

EBITDA yield2.6%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 months · EUR→USD convertedReported value50% base weight · Z-score -0.92Sector median: 0.0857 · MAD: 0.0649

Free cash flow yield2.6%

SEC filings (IFRS mapped) · 12 months to Dec 2025 · EUR→USD at the current rate · operating cash flow − capital spendingReported value20% base weight · Z-score -0.81Sector median: 0.0740 · MAD: 0.0593

Other data (not scored)

Book yield7.6%

SEC filings (IFRS mapped) · latest balance sheet · EUR→USD at the current rateReported valueInformational · 0% composite weightSector median: 0.4780 · MAD: 0.3375

Growth

Is it growing?

82/100

Strong

3/3 inputs reported · High confidence

Since last year: ▲ Stronger

12-month revenue up 9.7%

Why

Stronger than most peers on:

▲ EPS growth
▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth92.5%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 2.68Sector median: 0.0878 · MAD: 0.3126

3-year revenue growth13.6%

SEC filings (IFRS mapped) · 3 years to Dec 2025Reported value33% base weight · Z-score 1.55Sector median: 0.0303 · MAD: 0.0683

Revenue growth9.7%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.92Sector median: 0.0299 · MAD: 0.0720

Profitability

Does it earn well?

93/100

Strong

3/3 inputs reported · High confidence

Since last year: ▲ Stronger

Operating margin rose 4.1 points to 12.8%

Why

Stronger than most peers on:

▲ ROA
▲ ROIC
▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin12.8%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.58Sector median: 0.0818 · MAD: 0.0789

Return on assets14.7%

SEC filings (IFRS mapped) · 12 months to Dec 2025Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.70Sector median: 0.0272 · MAD: 0.0318

Return on invested capital38.3%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 4.58Sector median: 0.0598 · MAD: 0.0706

Other data (not scored)

Gross margin32.0%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.4656 · MAD: 0.1827

Return on equity26.6%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.0529 · MAD: 0.1007

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last year: No major change

Why

Mixed versus peers:

▲ Debt / equity
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.59

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -3.24Sector median: 0.6525 · MAD: 0.2880

Current ratio1.72×

SEC filings (IFRS mapped) · latest balance sheetReported value33% base weight · Z-score 0.49Sector median: 1.3848 · MAD: 0.6948

Debt / equity0.18×

SEC filings (IFRS mapped) · latest balance sheetReported value33% base weight · Z-score 0.58Sector median: 0.3697 · MAD: 0.3335

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Spotify Technology

Is Spotify Technology getting weaker?: Its latest SEC filing (Feb 10, 2026) got stronger: operating margin rose 4.1 points to 12.8%. Its overall score is unchanged at 58/100 since Oct 28, 2026.
How is Spotify Technology valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 25/100 against 512 communication services peers. Free cash flow yield 2.6% vs a peer median of 7.4% (weaker than 77% of peers).Free cash flow yield 2.6% vs peers 7.4% (weaker than 77% of peers).
Is Spotify Technology growing?: Yes, faster than most of its peers. Growth scores 82/100 against 512 communication services peers. Earnings per share growth 92.5% vs a peer median of 8.8% (stronger than 83% of peers).Earnings per share growth 92.5% vs peers 8.8% (stronger than 83% of peers).
How profitable is Spotify Technology?: More profitable than most of its peers. Profitability scores 93/100 against 512 communication services peers. Return on assets 14.7% vs a peer median of 2.7% (stronger than 95% of peers).Return on assets 14.7% vs peers 2.7% (stronger than 95% of peers).
How risky is Spotify Technology?: Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Debt / equity 0.18× vs a peer median of 0.37× (stronger than 66% of peers).Debt / equity 0.18× vs peers 0.37× (stronger than 66% of peers). Beta 1.59 vs a peer median of 0.65 (weaker than 94% of peers).Beta 1.59 vs peers 0.65 (weaker than 94% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Year ended Dec 31, 2025 · filed Feb 10, 2026 · compared with the year ended Dec 31, 2024

Got stronger

Operating margin rose 4.1 points to 12.8%

	Previous year	Latest year	Change
Revenue (12 months)	15.7B EUR	17.2B EUR	+9.7%
Net income (12 months)	1.1B EUR	2.2B EUR	+94.4%
Operating margin	8.7%	12.8%	+4.1 pts
Free cash flow (12 months)	2.3B EUR	2.9B EUR	+25.7%
Debt	1.5B EUR	1.5B EUR	−5.3%
Cash	4.8B EUR	5.3B EUR	+10.0%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one year at a time.

Financials

Fiscal years from SEC annual filings · change vs the prior year · amounts in EUR, as reported

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	26.8%	25.0%	25.6%	30.1%	32.0%	▲ 1.8 pts
Operating margin	1.0%	-5.6%	-3.4%	8.7%	12.8%	▲ 4.1 pts
Net margin	-0.4%	-3.7%	-4.0%	7.3%	12.9%	▲ 5.6 pts
Return on assets (ROA)	-0.5%	-5.6%	-6.4%	9.5%	14.7%	▲ 5.3 pts
Return on equity (ROE)	-1.6%	-17.9%	-21.1%	20.6%	26.6%	▲ 6.0 pts
Free cash flow margin	2.9%	0.2%	5.1%	14.6%	16.7%	▲ 2.1 pts
Current ratio	1.36×	1.24×	1.29×	1.88×	1.72×	▼ 8.4%
Debt to equity	0.57×	0.47×	0.48×	0.28×	0.18×	▼ 37%
Interest coverage	1.03×	-4.99×	-2.03×	3.88×	8.26×	▲ 113%

SPOT price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: its share price swings more than most peers’ (beta 1.59 vs a peer median of 0.65)bigger price swings (beta 1.59 vs peers 0.65)

About average: risk (debt, liquidity and share-price swings)risk

Ranks #160 of 454 communication services companies (top 36%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense EUR 835M vs EUR 439M spent repurchasing shares over the 3 fiscal years to 2025.

Over three fiscal years Spotify Technology recorded EUR 835M of stock-based pay expense and spent EUR 439M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Spotify Technology recorded EUR 835M of stock-based pay expense and spent EUR 439M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Operating margin at a 6-year high. 13% in 2025, the best of the last 6 years.

Spotify Technology kept 13% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

Financials may be out of date. Latest financial period ended 10 months ago.

The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from EUR 7.9B in 2020 to EUR 17.2B in 2025.

Spotify Technology's fiscal-year revenue rose in each of the five years to 2025, from EUR 7.9B to EUR 17.2B.

Questions investors ask about Spotify Technology

Is Spotify Technology getting weaker?

Its latest SEC filing (Feb 10, 2026) got stronger: operating margin rose 4.1 points to 12.8%. Its overall score is unchanged at 58/100 since Oct 28, 2026.

How is Spotify Technology valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 25/100 against 512 communication services peers. Free cash flow yield 2.6% vs a peer median of 7.4% (weaker than 77% of peers).Free cash flow yield 2.6% vs peers 7.4% (weaker than 77% of peers).

Is Spotify Technology growing?

Yes, faster than most of its peers. Growth scores 82/100 against 512 communication services peers. Earnings per share growth 92.5% vs a peer median of 8.8% (stronger than 83% of peers).Earnings per share growth 92.5% vs peers 8.8% (stronger than 83% of peers).

How profitable is Spotify Technology?

More profitable than most of its peers. Profitability scores 93/100 against 512 communication services peers. Return on assets 14.7% vs a peer median of 2.7% (stronger than 95% of peers).Return on assets 14.7% vs peers 2.7% (stronger than 95% of peers).

How risky is Spotify Technology?

Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Debt / equity 0.18× vs a peer median of 0.37× (stronger than 66% of peers).Debt / equity 0.18× vs peers 0.37× (stronger than 66% of peers). Beta 1.59 vs a peer median of 0.65 (weaker than 94% of peers).Beta 1.59 vs peers 0.65 (weaker than 94% of peers). A relative measure, not a bankruptcy probability.

Previous year

Latest year

Change

Revenue (12 months)

15.7B EUR

17.2B EUR

+9.7%

Net income (12 months)

1.1B EUR

2.2B EUR

+94.4%

Operating margin

8.7%

12.8%

+4.1 pts

Free cash flow (12 months)

2.3B EUR

2.9B EUR

+25.7%

Debt

1.5B EUR

1.5B EUR

−5.3%

Cash

4.8B EUR

5.3B EUR

+10.0%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

26.8%

25.0%

25.6%

30.1%

32.0%

▲ 1.8 pts

Operating margin

1.0%

-5.6%

-3.4%

8.7%

12.8%

▲ 4.1 pts

Net margin

-0.4%

-3.7%

-4.0%

7.3%

12.9%

▲ 5.6 pts

Return on assets (ROA)

-0.5%

-5.6%

-6.4%

9.5%

14.7%

▲ 5.3 pts

Return on equity (ROE)

-1.6%

-17.9%

-21.1%

20.6%

26.6%

▲ 6.0 pts

Free cash flow margin

2.9%

0.2%

5.1%

14.6%

16.7%

▲ 2.1 pts

Current ratio

1.36×

1.24×

1.29×

1.88×

1.72×

▼ 8.4%

Debt to equity

0.57×

0.47×

0.48×

0.28×

0.18×

▼ 37%

Interest coverage

1.03×

-4.99×

-2.03×

3.88×

8.26×

▲ 113%