Spotify reported third quarter 2026 revenue of €4.97 billion, representing 16% year-over-year growth, while failing to meet the analyst consensus of €4.98 billion. Despite the slight revenue shortfall, the company demonstrated strong user momentum and margin expansion. Monthly Active Users (MAUs) increased 11% year-over-year to 788 million, and the company achieved a consolidated gross margin of 33.0% as it continues to optimize its podcast and audiobook cost structures.
Key Highlights
- Premium Subscribers grew 9% year-over-year to 306 million, exceeding analyst expectations of 305 million.
- Diluted EPS for the quarter was €2.48, coming in below the anticipated $2.81 estimate.
- Operating income reached €672 million, reflecting improved leverage in both the Premium and Ad-Supported segments.
- Free Cash Flow for the first nine months of 2026 reached €2.36 billion, a significant increase from €2.04 billion in the prior year period.