TLDR
- Spotify stock jumped 15% Tuesday after reporting Q4 earnings of 4.43 euros per share, crushing analyst expectations of 2.74 euros.
- The streaming platform added users to reach 751 million monthly active listeners, beating forecasts of 744.7 million.
- Premium subscribers hit 290 million despite price hikes to $12.99 monthly in the U.S. and €11.99 in other markets.
- Spotify Wrapped 2025 drew 300 million users and generated 630 million social media shares, marking the feature’s best year.
- Q1 revenue guidance of 4.5 billion euros missed Wall Street’s 4.58 billion estimate due to foreign exchange pressures.
Spotify stock surged 15% Tuesday after the streaming company delivered a strong earnings beat and showed robust user growth. Shares climbed to $489.72 in what marked the largest single-day gain in company history.
The company posted Q4 earnings of 4.43 euros per share, crushing analyst estimates of 2.74 euros. Revenue reached 4.53 billion euros, topping the 4.52 billion euro consensus.
Monthly active users grew 11% year-over-year to 751 million. The number beat FactSet’s projection of 744.7 million users.
Premium subscribers increased 10% to 290 million. The growth continued despite Spotify raising prices across multiple markets throughout 2024 and early 2025.
Price Increases Don’t Slow Momentum
Spotify raised U.S. premium subscription prices to $12.99 per month from $11.99 in January. The company also increased prices in August 2025 across South Asia, the Middle East, Africa, Europe, and Latin America to €11.99 from €10.99.
Co-CEO Alex Norström said the quarter saw the most user additions ever recorded. He pointed to growth in Latin America and Europe, plus improvements to the mobile free tier.
Ad-supported users totaled 476 million, beating StreetAccount’s estimate of 468.9 million.
Net income reached 1.17 billion euros, or 4.43 euros per share. That compared to 367 million euros, or 1.76 euros per share, in the prior-year period.
Wrapped Feature Hits Record Numbers
The year-end Spotify Wrapped feature set new records in 2025. Over 300 million users engaged with their personalized listening summaries.
The campaign generated more than 630 million social media shares. Spotify called it the most successful Wrapped rollout to date.
The platform expanded content beyond music during Q4. Audiobooks launched in Denmark, Finland, Sweden, Monaco, and Iceland.
Premium members get 15 hours of audiobook listening monthly. Spotify also announced U.S. and U.K. users can buy physical books through the app via Bookshop.org starting this spring.
The company rolled out music videos for premium subscribers and added more AI tools in the quarter. Norström said major publishers credited Spotify with driving double-digit audiobook growth.
Gross profit margin hit 33.1%, beating Wall Street’s 32.9% forecast.
For Q1, Spotify expects monthly active users to reach 759 million, above the FactSet estimate of 752.4 million. Premium subscribers are projected at 293 million.
Revenue guidance for the current quarter came in at 4.5 billion euros. The forecast missed analyst estimates of 4.58 billion euros due to a 670 basis point foreign exchange headwind.
Spotify expects Q1 gross margin of 32.8% versus Wall Street’s 32.1% projection. The stock had fallen 21% over the previous 12 months before Tuesday’s rally as investors worried about slowing revenue growth.
