Recent News
On November 4, 2025, Spotify announced a leadership evolution: Founder Daniel Ek will become Executive Chairman effective January 1, 2026, and Gustav Söderström and Alex Norström will assume co-CEO roles. On November 11, 2025, Spotify’s CFO scheduled a presentation at the Morgan Stanley European Technology, Media & Telecom Conference for November 13, 2025. In early December 2025, Spotify reported that “The Joe Rogan Experience” again ranked among the platform’s most-listened podcasts, and Spotify highlighted growth in video podcast viewership.
Technical Analysis
ADX / DI+ / DI-: ADX at 21.37 indicates an emerging trend rather than a strong directional regime. DI+ sits at 22.63 and shows an increasing trajectory, signaling buyer attempts to lift price; DI- at 31.23 shows a dip-and-reversal pattern, signaling renewed selling pressure. The coexistence of an emerging ADX with opposing DI signals points to a near-term directional contest that can produce oscillation around established support.
MACD: MACD at -14.10 sits above its signal line (-16.06), which constitutes a bullish crossover; the MACD trend, labeled peak-and-reversal, signals waning momentum despite that crossover. The juxtaposition implies any upside will rely on a re-acceleration of bullish momentum rather than on the crossover alone.
MRO: MRO at -5.17 with a dip-and-reversal trend indicates a modest model undershoot (price below target), implying potential upward pressure if momentum shifts; the magnitude suggests limited immediate impulse from MRO alone.
RSI: RSI at 39.45 with a peak-and-reversal trend places momentum below the midpoint, reflecting recent weakening without reaching oversold territory; RSI behavior supports a cautious bias until RSI reclaims higher levels.
Price vs. Moving Averages and Bands: Last close $566.23 sits below the 20-day average ($580.58), 50-day average ($626.91) and 200-day average ($650.42), indicating short- and medium-term price weakness versus longer-term averages. Price lies just above the Bollinger 1x lower band ($562.58) and the supertrend support ($563.29), suggesting nearby technical support that limits immediate downside absent a decisive breakdown.
Fundamental Analysis
Profitability: EBIT $835.0M and EBITDA $859.0M produce an EBIT margin of 19.55%. That margin improved QoQ by 13.63% and expanded YoY by 91.52%. Compared with the industry peer mean EBIT margin (26.25%) and industry peer median (21.77%), the company’s EBIT margin remains below the peer mean and slightly below the peer median.
Revenue and Growth Dynamics: Reported total revenue $4,272.0M with revenue growth of 1.88% for the period. Quarter-over-quarter revenue rose 25.17% while year-over-year revenue shows -60.37% per the provided YoY metric. QoQ improvements in revenue and margins indicate operating leverage in recent quarters, though YoY figures reflect variability in the growth profile.
Cash Flow and Liquidity: Operating cash flow $829.0M and free cash flow $806.0M yield a free cash flow yield of 0.57%, below the industry peer mean free cash flow yield of 0.95%. Cash and short-term investments total $9,062.0M and cash alone totals $5,456.0M; current ratio stands at 1.61 and cash ratio at 1.45, supporting short-term liquidity. Debt metrics remain moderate: total debt $2,246.0M, debt-to-assets 15.29%, debt-to-equity 28.87%, and debt-to-EBITDA about 2.61x, while interest coverage at 104.38 shows ample coverage of interest expense.
Earnings and Forward Indicators: Reported EPS $3.28 versus an estimate of $2.02 produced an EPS beat of $1.26, a 62.38% surprise. Forward EPS stands at $3.58 with forward PE ~313.07; the reported trailing PE sits at 208.25. Price-to-sales 32.95 and price-to-book 18.10 remain elevated. Price-target mean among analysts equals $614.48, above the last close, while the WMDST valuation labels the stock over-valued.
Efficiency and Returns: Asset turnover 30.35% compares favorably to the industry peer mean of 20.47%. Return on assets at 6.39% and return on equity at 11.56% both sit above their respective industry peer means (return on assets mean 3.94%, return on equity mean 8.70%), indicating efficient capital deployment relative to peers despite high valuation multiples.
Valuation Summary: WMDST values the stock as over-valued. High multiples—trailing PE 208x, forward PE ~313x, PS 33x and PB ~18x—coupled with a free cash flow yield below the industry peer mean support that assessment. Margin expansion and strong liquidity provide fundamental support, but elevated valuation metrics require continued execution to justify current market pricing.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-04 |
| NEXT REPORT DATE: | 2026-02-03 |
| CASH FLOW | Begin Period Cash Flow | $ 5.2 B |
| Operating Cash Flow | $ 829.0 M | |
| Capital Expenditures | $ -23.00 M | |
| Change In Working Capital | $ 101.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 295.0 M | |
| End Period Cash Flow | $ 5.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.3 B | |
| Forward Revenue | $ 877.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 2.9 B | |
| Depreciation | $ 19.0 M | |
| Depreciation and Amortization | $ 24.0 M | |
| Research and Development | $ 309.0 M | |
| Total Operating Expenses | $ 3.7 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.4 B | |
| EBITDA | $ 859.0 M | |
| EBIT | $ 835.0 M | |
| Operating Income | $ 582.0 M | |
| Interest Income | $ 59.0 M | |
| Interest Expense | $ 8.0 M | |
| Net Interest Income | $ 56.0 M | |
| Income Before Tax | $ 827.0 M | |
| Tax Provision | $ -72.00 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 899.0 M | |
| Net Income From Continuing Operations | $ 899.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.02 | |
| EPS Actual | $ 3.28 | |
| EPS Difference | $ 1.26 | |
| EPS Surprise | 62.376 % | |
| Forward EPS | $ 3.58 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.7 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ 6.7 B | |
| Total Current Assets | $ 10.1 B | |
| Cash and Short-Term Investments | $ 9.1 B | |
| Cash | $ 5.5 B | |
| Net Receivables | $ 511.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 61.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 802.0 M | |
| Short-Term Debt | $ 1.7 B | |
| Total Current Liabilities | $ 6.2 B | |
| Net Debt | — | |
| Total Debt | $ 2.2 B | |
| Total Liabilities | $ 6.9 B | |
| EQUITY | ||
| Total Equity | $ 7.8 B | |
| Retained Earnings | $ -2.01 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 37.75 | |
| Shares Outstanding | 206.084 M | |
| Revenue Per-Share | $ 20.73 | |
| VALUATION | Market Capitalization | $ 140.8 B |
| Enterprise Value | $ 134.0 B | |
| Enterprise Multiple | 155.939 | |
| Enterprise Multiple QoQ | -90.472 % | |
| Enterprise Multiple YoY | -1.897 % | |
| Enterprise Multiple IPRWA | SPOT: 155.939 high: 99.745 median: 69.962 mean: 62.593 low: -118.636 |
|
| EV/R | 31.356 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.888 | |
| Asset To Liability | 2.126 | |
| Debt To Capital | 0.224 | |
| Debt To Assets | 0.153 | |
| Debt To Assets QoQ | -13.567 % | |
| Debt To Assets YoY | -9.655 % | |
| Debt To Assets IPRWA | high: 1.022 median: 0.263 mean: 0.252 SPOT: 0.153 low: 0.013 |
|
| Debt To Equity | 0.289 | |
| Debt To Equity QoQ | -19.672 % | |
| Debt To Equity YoY | -25.102 % | |
| Debt To Equity IPRWA | high: 7.122 mean: 0.681 median: 0.557 SPOT: 0.289 low: -4.611 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 18.096 | |
| Price To Book QoQ | -14.448 % | |
| Price To Book YoY | 13.668 % | |
| Price To Book IPRWA | high: 25.535 median: 19.682 SPOT: 18.096 mean: 16.913 low: -2.514 |
|
| Price To Earnings (P/E) | 208.25 | |
| Price To Earnings QoQ | -112.865 % | |
| Price To Earnings YoY | -17.269 % | |
| Price To Earnings IPRWA | high: 593.049 SPOT: 208.25 mean: 192.71 median: 188.737 low: -655.49 |
|
| PE/G Ratio | -0.236 | |
| Price To Sales (P/S) | 32.951 | |
| Price To Sales QoQ | -1.433 % | |
| Price To Sales YoY | 78.165 % | |
| Price To Sales IPRWA | SPOT: 32.951 high: 19.801 mean: 8.283 median: 8.271 low: 1.121 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 313.071 | |
| Forward PE/G | -0.355 | |
| Forward P/S | 258.125 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 738.324 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.303 | |
| Asset Turnover Ratio QoQ | -5.361 % | |
| Asset Turnover Ratio YoY | -21.244 % | |
| Asset Turnover Ratio IPRWA | high: 0.675 SPOT: 0.303 mean: 0.205 median: 0.191 low: 0.052 |
|
| Receivables Turnover | 8.376 | |
| Receivables Turnover Ratio QoQ | 3.882 % | |
| Receivables Turnover Ratio YoY | 13.633 % | |
| Receivables Turnover Ratio IPRWA | SPOT: 8.376 high: 7.043 mean: 5.942 median: 5.21 low: 1.288 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 10.894 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.595 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 68.402 mean: -7.511 SPOT: -14.595 median: -19.144 low: -91.156 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.119 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -1.211 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 7.8 B | |
| Net Invested Capital | $ 9.5 B | |
| Invested Capital | $ 9.5 B | |
| Net Tangible Assets | $ 6.7 B | |
| Net Working Capital | $ 3.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.452 | |
| Current Ratio | 1.612 | |
| Current Ratio QoQ | 9.417 % | |
| Current Ratio YoY | -5.487 % | |
| Current Ratio IPRWA | high: 2.739 SPOT: 1.612 mean: 1.397 median: 1.168 low: 0.309 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.615 | |
| Cost Of Debt | 0.273 % | |
| Interest Coverage Ratio | 104.375 | |
| Interest Coverage Ratio QoQ | 1391.071 % | |
| Interest Coverage Ratio YoY | 130.805 % | |
| Interest Coverage Ratio IPRWA | SPOT: 104.375 high: 18.738 mean: 17.172 median: 10.09 low: -9.125 |
|
| Operating Cash Flow Ratio | 0.147 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 25.488 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 9.09 % | |
| Revenue Growth | 1.884 % | |
| Revenue Growth QoQ | 2516.667 % | |
| Revenue Growth YoY | -60.37 % | |
| Revenue Growth IPRWA | high: 22.255 % mean: 4.218 % SPOT: 1.884 % median: 1.429 % low: -14.52 % |
|
| Earnings Growth | -880.952 % | |
| Earnings Growth QoQ | 532.631 % | |
| Earnings Growth YoY | -9863.405 % | |
| Earnings Growth IPRWA | high: 128.571 % mean: -7.233 % median: -18.359 % low: -125.0 % SPOT: -880.952 % |
|
| MARGINS | ||
| Gross Margin | 31.625 % | |
| Gross Margin QoQ | 0.457 % | |
| Gross Margin YoY | 1.711 % | |
| Gross Margin IPRWA | high: 86.351 % mean: 45.201 % median: 44.647 % SPOT: 31.625 % low: 10.643 % |
|
| EBIT Margin | 19.546 % | |
| EBIT Margin QoQ | 1363.024 % | |
| EBIT Margin YoY | 91.515 % | |
| EBIT Margin IPRWA | high: 32.152 % mean: 26.25 % median: 21.774 % SPOT: 19.546 % low: -24.848 % |
|
| Return On Sales (ROS) | 13.624 % | |
| Return On Sales QoQ | 40.7 % | |
| Return On Sales YoY | 33.49 % | |
| Return On Sales IPRWA | high: 28.22 % median: 28.016 % mean: 25.547 % SPOT: 13.624 % low: -24.352 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 806.0 M | |
| Free Cash Flow Yield | 0.573 % | |
| Free Cash Flow Yield QoQ | 14.83 % | |
| Free Cash Flow Yield YoY | -40.56 % | |
| Free Cash Flow Yield IPRWA | high: 5.262 % mean: 0.952 % SPOT: 0.573 % median: 0.521 % low: -14.855 % |
|
| Free Cash Growth | 15.308 % | |
| Free Cash Growth QoQ | -50.848 % | |
| Free Cash Growth YoY | -66.059 % | |
| Free Cash Growth IPRWA | high: 973.24 % mean: 51.586 % median: 17.337 % SPOT: 15.308 % low: -740.0 % |
|
| Free Cash To Net Income | 0.897 | |
| Cash Flow Margin | 21.536 % | |
| Cash Flow To Earnings | 1.023 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 6.386 % | |
| Return On Assets QoQ | -1070.517 % | |
| Return On Assets YoY | 120.283 % | |
| Return On Assets IPRWA | SPOT: 6.386 % high: 4.715 % mean: 3.94 % median: 2.024 % low: -10.786 % |
|
| Return On Capital Employed (ROCE) | 9.882 % | |
| Return On Equity (ROE) | 0.116 | |
| Return On Equity QoQ | -990.37 % | |
| Return On Equity YoY | 78.486 % | |
| Return On Equity IPRWA | high: 0.229 SPOT: 0.116 mean: 0.087 median: 0.026 low: -0.066 |
|
| DuPont ROE | 12.481 % | |
| Return On Invested Capital (ROIC) | 6.929 % | |
| Return On Invested Capital QoQ | 1240.232 % | |
| Return On Invested Capital YoY | -196.99 % | |
| Return On Invested Capital IPRWA | SPOT: 6.929 % high: 6.734 % mean: 5.829 % median: 2.594 % low: -5.58 % |
|