Spotify Q2 Earnings: Record Gross Margin, 300M Subscribers, and Upbeat Q3 Guidance
SPOT is trading near its 52-week low of $405 (14% above the low).
Summary
Spotify posted Q2 revenue of €4.8B, a record gross margin of 33.4%, and operating income of €655M, all beating guidance. Premium subscribers hit 300M, and Q3 guidance calls for €5.0B in revenue and €670M in operating income.
Updates
· Dow Jones Newswires — EPS of €2.61 missed the €2.76 estimate and revenue of €4.78B missed €4.79B. Q3 operating income guidance of €670M fell short of the €678M consensus. Shares dropped 6.2% pre-market.
Key Events · Earnings and Guidance · SPOT
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Q2 Revenue and Profit Beat
Total revenue of €4.8B grew 14% Y/Y (15% constant currency), with operating income of €655M exceeding guidance of €630M. Gross margin hit a record 33.4%, up 193 bps Y/Y.
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Subscriber Milestone
Premium subscribers reached 300 million, up 9% Y/Y, with 7 million net adds in Q2. MAUs grew 12% Y/Y to 777 million.
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Q3 Guidance Above Consensus
Q3 revenue guidance of €5.0B implies accelerating growth, with operating income of €670M. MAUs expected at 788M and Premium subscribers at 305M.
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Strong Free Cash Flow and Buybacks
Free cash flow was €797M in Q2, bringing LTM FCF to €3.3B. The company repurchased $662M in shares YTD, up 30% from 2025 levels.
Analysis · SPOT · Technology
A strong second quarter saw Spotify reach 300 million Premium subscribers and a record 33.4% gross margin. Revenue climbed 14% to €4.8 billion, while operating income of €655 million surpassed guidance. Looking ahead, the company guided third-quarter revenue to €5.0 billion—above consensus—with operating income of €670 million. Free cash flow remained robust at €797 million for the quarter, and the buyback program continued with $662 million repurchased year-to-date. These results reinforce a narrative of accelerating growth and expanding profitability, even as the company reinvests in marketing and AI.
How filings like this one have moved
In the 30 days to Oct 3, 2026, 36.5% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.60%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SPOT was trading at $461.80 on NYSE in the Technology sector, with a market capitalization of approximately $100.1B. The 52-week trading range was $405.00 to $748.30. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.