Spotify Technology SA is projecting a robust fourth-quarter performance, surpassing analyst expectations, thanks to a combination of accelerated user growth, subscription price increases, and cost-cutting measures.
The Swedish streaming giant announced on November 4, 2025, that it expects operating income of €548 million ($566.2 million) for the upcoming quarter Yahoo Finance. This marks a significant milestone following its first-ever annual profit, achieved through strategic reductions in marketing and personnel expenses Yahoo Finance.
Key Drivers Behind the Forecast
User Growth: Spotify continues to expand its global user base, with strong engagement across both free and premium tiers.
Price Hikes: The company raised prices for its premium individual subscription, boosting revenue without major subscriber churn U.S. News Yahoo Finance.
Cost Optimization: Spotify has trimmed spending on marketing and scaled back investments in podcasting and audio content, improving margins Yahoo Finance.
Shares of Spotify rose 5.3% in premarket trading following the announcement, reflecting investor confidence in the company’s strategic direction U.S. News.
This earnings forecast is also the first since Spotify announced a leadership transition: CEO Daniel Ek will become executive chairman in January 2026, as the company adopts a co-CEO structure Yahoo Finance.
Spotify’s performance comes amid fierce competition from Apple Music and Amazon Music, but its focus on high-quality streaming features—such as the newly launched lossless audio option—has helped differentiate its offerings Yahoo Finance.
Sources:
U.S. News U.S. News & World Report
Yahoo Finance Yahoo Finance UK
Yahoo Finance Yahoo Finance
