Recent News
On January 15, 2026, Spotify announced U.S. subscription price increases across Premium tiers, with new pricing phased in for existing members beginning in February. In mid-January 2026 management changes came into focus as co-founder Daniel Ek moved from day-to-day CEO duties while co-CEOs assumed operational leadership. During January–February 2026 the company publicly emphasized tighter controls and policy development around AI-generated content and monetization strategies.
Technical Analysis
Directional indicators show bullish internals despite no clear trend: DI+ at 25.79 moved higher while DI− at 28.20 declined, signaling buy-side pressure even as ADX sits at 19.46 (below 20) and indicates a lack of a confirmed trend. That combination supports short-term upside potential without a strong, sustained directional conviction.
The MACD sits at −6.30 above its signal line at −14.37, creating a bullish MACD crossover; the MACD has been increasing, which indicates a return of positive momentum and supports further mean reversion toward moving-average levels.
MRO reads −25.76 and has been increasing toward zero, indicating the market price trades below the momentum/regression target and therefore retains measured upside potential back toward model-implied levels.
RSI at 42.09 and rising shows constructive momentum building from neutral territory rather than outright overbought conditions; that momentum aligns with the MACD crossover for a near-term recovery bias.
Price sits above the 20-day average ($478.45) and the 12-day EMA has shown a dip-and-reversal behavior, but the stock remains below the 50-day average ($514.45) and well below the 200-day average ($634.40). Bollinger bands place the 1x upper band near $500–$522, indicating current price action tests short-term resistance while still below longer-term averages. Trading volume currently measures well below short- and medium-term averages, suggesting any moves may require higher participation to sustain.
Fundamental Analysis
Revenue dynamics show mixed signals: quarter-over-quarter growth prints as 221.82% QoQ (reported value) while year-over-year revenue changed by −4.81%, indicating recent sequential acceleration against a slightly lower annual base. Gross margin stands at 33.08%, up modestly QoQ, supporting improved operating economics.
Operating and profitability metrics show material improvement. Operating margin measures 15.47% and EBIT margin registers 22.69%, which sits above the industry peer mean (22.05%) but below the industry peer median (24.91%). EBIT margin improved strongly QoQ (+16.08%) and YoY (+89.46%), reflecting both leverage and one-time tax/compensation effects embedded in reported results.
Earnings per share arrived at $4.43 versus an estimate of $2.78, representing an EPS surprise of $1.65 or roughly a 59.35% beat. Net income totaled $1,174,000,000 and free cash flow reached $834,000,000, producing a free cash flow yield of 0.74%—above the industry peer mean of 0.38% but still modest in absolute terms.
Balance-sheet and liquidity metrics remain solid. Cash and short-term investments total $9,467,000,000 and the cash ratio sits at 1.56 with a current ratio of 1.72. Leverage stays low: total debt equals $1,956,000,000, debt-to-equity at 0.23, and debt-to-EBITDA about 1.86, supporting financial flexibility for continued product investment and potential M&A.
Market multiples show a stretched valuation profile: P/E at 124.29 and P/S at 25.01, both elevated relative to typical media & entertainment comparators; price-to-book near 13.61 sits below the industry peer mean of 15.75. Forward P/E runs near 126.14. WMDST values the stock as over-valued, reflecting high multiples versus current cash-flow yields and the company’s large cash balance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-10 |
| NEXT REPORT DATE: | 2026-05-12 |
| CASH FLOW | Begin Period Cash Flow | $ 5.5 B |
| Operating Cash Flow | $ 856.0 M | |
| Capital Expenditures | $ -22.00 M | |
| Change In Working Capital | $ 24.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -198.00 M | |
| End Period Cash Flow | $ 5.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 4.5 B | |
| Forward Revenue | $ 954.2 M | |
| COSTS | ||
| Cost Of Revenue | $ 3.0 B | |
| Depreciation | $ 20.0 M | |
| Depreciation and Amortization | $ 25.0 M | |
| Research and Development | $ 290.0 M | |
| Total Operating Expenses | $ 3.8 B | |
| PROFITABILITY | ||
| Gross Profit | $ 1.5 B | |
| EBITDA | $ 1.1 B | |
| EBIT | $ 1.0 B | |
| Operating Income | $ 701.0 M | |
| Interest Income | $ 58.0 M | |
| Interest Expense | $ 7.0 M | |
| Net Interest Income | $ 57.0 M | |
| Income Before Tax | $ 1.0 B | |
| Tax Provision | $ -153.00 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 1.2 B | |
| Net Income From Continuing Operations | $ 1.2 B | |
| EARNINGS | ||
| EPS Estimate | $ 2.78 | |
| EPS Actual | $ 4.43 | |
| EPS Difference | $ 1.65 | |
| EPS Surprise | 59.353 % | |
| Forward EPS | $ 4.80 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 15.0 B | |
| Intangible Assets | $ 1.1 B | |
| Net Tangible Assets | $ 7.2 B | |
| Total Current Assets | $ 10.5 B | |
| Cash and Short-Term Investments | $ 9.5 B | |
| Cash | $ 5.3 B | |
| Net Receivables | $ 536.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 61.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 783.0 M | |
| Short-Term Debt | $ 1.5 B | |
| Total Current Liabilities | $ 6.1 B | |
| Net Debt | — | |
| Total Debt | $ 2.0 B | |
| Total Liabilities | $ 6.7 B | |
| EQUITY | ||
| Total Equity | $ 8.3 B | |
| Retained Earnings | $ -832.00 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 40.46 | |
| Shares Outstanding | 205.833 M | |
| Revenue Per-Share | $ 22.01 | |
| VALUATION | Market Capitalization | $ 113.3 B |
| Enterprise Value | $ 105.8 B | |
| Enterprise Multiple | 100.495 | |
| Enterprise Multiple QoQ | -35.555 % | |
| Enterprise Multiple YoY | -39.709 % | |
| Enterprise Multiple IPRWA | high: 602.949 SPOT: 100.495 mean: 93.235 median: 54.791 low: 45.615 |
|
| EV/R | 23.355 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.803 | |
| Asset To Liability | 2.246 | |
| Debt To Capital | 0.19 | |
| Debt To Assets | 0.13 | |
| Debt To Assets QoQ | -14.801 % | |
| Debt To Assets YoY | -21.844 % | |
| Debt To Assets IPRWA | high: 1.015 mean: 0.278 median: 0.26 SPOT: 0.13 low: 0.008 |
|
| Debt To Equity | 0.235 | |
| Debt To Equity QoQ | -18.664 % | |
| Debt To Equity YoY | -35.158 % | |
| Debt To Equity IPRWA | high: 6.397 mean: 0.747 median: 0.543 SPOT: 0.235 low: -4.294 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 13.607 | |
| Price To Book QoQ | -24.806 % | |
| Price To Book YoY | -20.967 % | |
| Price To Book IPRWA | high: 21.787 median: 15.962 mean: 15.746 SPOT: 13.607 low: -0.461 |
|
| Price To Earnings (P/E) | 124.29 | |
| Price To Earnings QoQ | -40.317 % | |
| Price To Earnings YoY | -53.123 % | |
| Price To Earnings IPRWA | high: 190.063 mean: 153.282 median: 149.447 SPOT: 124.29 low: -245.884 |
|
| PE/G Ratio | 3.545 | |
| Price To Sales (P/S) | 25.013 | |
| Price To Sales QoQ | -24.092 % | |
| Price To Sales YoY | 11.544 % | |
| Price To Sales IPRWA | SPOT: 25.013 high: 15.283 mean: 7.553 median: 5.44 low: 0.642 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 126.142 | |
| Forward PE/G | 3.598 | |
| Forward P/S | 116.59 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.812 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.305 | |
| Asset Turnover Ratio QoQ | 0.531 % | |
| Asset Turnover Ratio YoY | -18.883 % | |
| Asset Turnover Ratio IPRWA | high: 0.671 SPOT: 0.305 mean: 0.224 median: 0.218 low: 0.049 |
|
| Receivables Turnover | 8.655 | |
| Receivables Turnover Ratio QoQ | 3.328 % | |
| Receivables Turnover Ratio YoY | 9.873 % | |
| Receivables Turnover Ratio IPRWA | high: 19.989 SPOT: 8.655 median: 6.478 mean: 5.924 low: 1.249 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 10.543 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -14.214 | |
| Cash Conversion Cycle Days QoQ | -2.606 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 52.471 mean: 22.454 median: -1.857 SPOT: -14.214 low: -63.924 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.027 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -1.1 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.3 B | |
| Net Invested Capital | $ 9.8 B | |
| Invested Capital | $ 9.8 B | |
| Net Tangible Assets | $ 7.2 B | |
| Net Working Capital | $ 4.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.556 | |
| Current Ratio | 1.725 | |
| Current Ratio QoQ | 7.006 % | |
| Current Ratio YoY | -8.392 % | |
| Current Ratio IPRWA | SPOT: 1.725 high: 1.317 median: 1.186 mean: 1.149 low: 0.322 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.858 | |
| Cost Of Debt | 0.263 % | |
| Interest Coverage Ratio | 146.857 | |
| Interest Coverage Ratio QoQ | 40.701 % | |
| Interest Coverage Ratio YoY | 160.18 % | |
| Interest Coverage Ratio IPRWA | SPOT: 146.857 high: 12.808 median: 12.808 mean: 11.442 low: -11.957 |
|
| Operating Cash Flow Ratio | 0.19 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 24.757 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.219 % | |
| Revenue Growth | 6.063 % | |
| Revenue Growth QoQ | 221.815 % | |
| Revenue Growth YoY | -4.805 % | |
| Revenue Growth IPRWA | high: 35.599 % SPOT: 6.063 % median: 4.695 % mean: 2.869 % low: -25.716 % |
|
| Earnings Growth | 35.061 % | |
| Earnings Growth QoQ | -103.98 % | |
| Earnings Growth YoY | 63.997 % | |
| Earnings Growth IPRWA | high: 231.25 % SPOT: 35.061 % median: -5.128 % mean: -17.053 % low: -300.0 % |
|
| MARGINS | ||
| Gross Margin | 33.083 % | |
| Gross Margin QoQ | 4.61 % | |
| Gross Margin YoY | 2.586 % | |
| Gross Margin IPRWA | high: 68.097 % median: 45.874 % mean: 44.199 % SPOT: 33.083 % low: 7.235 % |
|
| EBIT Margin | 22.688 % | |
| EBIT Margin QoQ | 16.075 % | |
| EBIT Margin YoY | 89.461 % | |
| EBIT Margin IPRWA | high: 24.912 % median: 24.912 % SPOT: 22.688 % mean: 22.049 % low: -1.621 % |
|
| Return On Sales (ROS) | 15.471 % | |
| Return On Sales QoQ | 13.557 % | |
| Return On Sales YoY | 29.194 % | |
| Return On Sales IPRWA | high: 24.535 % median: 24.535 % mean: 21.691 % SPOT: 15.471 % low: -2.269 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 834.0 M | |
| Free Cash Flow Yield | 0.736 % | |
| Free Cash Flow Yield QoQ | 28.447 % | |
| Free Cash Flow Yield YoY | -20.174 % | |
| Free Cash Flow Yield IPRWA | high: 4.96 % SPOT: 0.736 % median: 0.441 % mean: 0.384 % low: -7.544 % |
|
| Free Cash Growth | 3.474 % | |
| Free Cash Growth QoQ | -77.306 % | |
| Free Cash Growth YoY | -85.12 % | |
| Free Cash Growth IPRWA | high: 143.75 % SPOT: 3.474 % mean: -21.163 % median: -29.625 % low: -153.391 % |
|
| Free Cash To Net Income | 0.71 | |
| Cash Flow Margin | 25.491 % | |
| Cash Flow To Earnings | 0.984 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 7.905 % | |
| Return On Assets QoQ | 23.786 % | |
| Return On Assets YoY | 142.932 % | |
| Return On Assets IPRWA | SPOT: 7.905 % high: 4.376 % median: 4.376 % mean: 3.803 % low: -1.589 % |
|
| Return On Capital Employed (ROCE) | 11.512 % | |
| Return On Equity (ROE) | 0.141 | |
| Return On Equity QoQ | 21.961 % | |
| Return On Equity YoY | 112.178 % | |
| Return On Equity IPRWA | high: 0.244 SPOT: 0.141 mean: 0.093 median: 0.091 low: -0.022 |
|
| DuPont ROE | 14.577 % | |
| Return On Invested Capital (ROIC) | 8.298 % | |
| Return On Invested Capital QoQ | 19.758 % | |
| Return On Invested Capital YoY | -220.98 % | |
| Return On Invested Capital IPRWA | SPOT: 8.298 % high: 6.386 % median: 6.386 % mean: 5.646 % low: -2.08 % |
|