Overview
- Q3 results beat forecasts with revenue at €4.27–€4.3 billion, gross margin at 31.6%, operating income at €582 million, and adjusted EPS at €3.28.
- User growth remained strong as monthly active users reached 713 million and premium subscribers hit 281 million, with record free cash flow of €806 million.
- Q4 guidance calls for €620 million in operating income above consensus, €4.5 billion in revenue below estimates, 745 million MAUs, and 289 million premium subscribers.
- Ad-supported revenue declined about 6% to €446 million despite ad-supported MAUs rising to 446 million, underscoring monetization challenges.
- Product updates and partnerships included a lossless audio option, expanding audiobooks with listeners up 36%, and an integration that links Spotify accounts to ChatGPT for recommendations, as the co-CEO transition takes effect Jan. 1, 2026.