Description

Spotify’s Audiophile-Level Upgrade Changes Everything—Is the Platform Becoming the Next Multimedia Giant?

Spotify’s third-quarter performance in 2025 shows a mix of strengths and challenges, setting the stage for its future trajectory. The company achieved a significant milestone by surpassing 700 million monthly active users (MAUs), highlighting strong user growth and engagement across music, podcasts, video, and audiobooks. This marks a notable achievement, exceeding the company’s guidance and reflecting positively on Spotify’s multi-format strategy. Additionally, Spotify’s subscriber growth remained robust, with subscribers reaching 281 million, a 12% year-over-year increase. Financially, Spotify reported revenue of €4.3 billion, growing 12% on a constant currency basis, with premium revenue as a key contributor due to subscriber growth. Gross margin improved to 31.6%, slightly ahead of guidance, with favorable content costs contributing to this performance. Operating income was €582 million, where variances in marketing expenses and personnel contributed to exceeding forecasts. The company generated free cash flow of €806 million.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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