Spotify (SPOT) Reports Q2 Loss, Lags Revenue Estimates

Core Insights - Spotify reported a quarterly loss of $0.48 per share, significantly missing the Zacks Consensus Estimate of $2.13, and down from earnings of $1.43 per share a year ago, representing an earnings surprise of -122.54% [1] - The company generated revenues of $4.76 billion for the quarter ended June 2025, which was 3.47% below the Zacks Consensus Estimate, but up from $4.1 billion year-over-year [2] - Spotify's stock has increased by approximately 56.7% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] Earnings Outlook - The future performance of Spotify's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is $2.37 on revenues of $5.15 billion, and for the current fiscal year, it is $8.99 on revenues of $20.51 billion [7] Industry Context - The Internet - Software industry, to which Spotify belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]