"Spotify Technology (NYSE:SPOT) surged 14% after delivering Q4 2025 earnings that validated its transformation from cash-burning disruptor to profitable streaming giant, as investors rewarded the company's ability to expand margins while growing users, a combination that eluded the platform for years as it battled music licensing costs and competition from Apple and Amazon. Even skeptical Reddit traders shifted sentiment from 58.4 to 62.0 as the company demonstrated it can grow users while expanding margins."
"Spotify crushed earnings expectations by 60% with $5.16 in earnings per share versus $3.21 expected, but the real story is how it added 38 million monthly active users in Q4 while expanding operating margins to record levels, solving the puzzle that plagued streaming economics for years, as it turns out, you can grow the audience AND make money at the same time."
Spotify surged 14% after Q4 2025 earnings that showed simultaneous user growth and margin expansion. The company reported $5.16 EPS versus $3.21 expected and added 38 million monthly active users in Q4. Total monthly active users reached 751 million with 290 million premium subscribers. Operating income reached €701 million (~$835 million) and operating margin hit 15.47%, the highest quarterly profitability in company history. Free cash flow rose from €21 million in 2022 to €2.9 billion in 2025. Spotify paid $11 billion to music rights holders in 2025 and initiated a €422 million share buyback program.
Read at 24/7 Wall St.
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