UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 20-F ___________________________________________________________ ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCH ...

>> "BLOOMBERG TECH" IS LIVE FROM COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: COMING UP, SPOTIFY ADDED A RECORD NUMBER OF USERS LAST QUARTER THANKS TO ITS END OF YEAR WRAPPED CAMPAIGN. CAROLINE: PARAMOUNT ENHANCES ITS BID FOR WARNER BROS.DISCOVERY, OFFERING BILLING TO COVER DEBT REFINANCING AND TAKING FEES. ED: RUNWAY CEO CRISTOBAL VALENZUELA TALKS ABOUT THE NEW FUNDING ROUND THAT VALUES THE COMPANY AT FIVE POINT $3 BILLION. CAROLINE: ON THE BENCHMARKS, NOTHING THAT EXCI ...

Group 1: Spotify - Spotify added a record number of users last quarter, reaching a total of 751 million subscribers, with shares surging by 20%, marking its biggest jump in seven years [3][4][30] - The end-of-year Wrapped campaign significantly contributed to user growth, as it is an annual interactive marketing campaign that encourages users to share their listening habits [31][32] - Despite the growth in users, advertising revenue has declined, raising concerns about the company's ability to monetize its ad-supported users effectively [32] Group 2: Paramount and Warner Bros. - Paramount is enhancing its bid for Warner Bros. by offering to cover a $2.8 billion termination fee that Warner Bros. would owe Netflix if they terminate their deal [33][34] - The bid aims to address Warner Bros.' concerns about refinancing debt and the financial implications of switching from Netflix to Paramount [35][36] - Paramount has not increased its offer price of $30 per share, but the added financial assurances may improve the bid's attractiveness to Warner Bros. [36][39] Group 3: Bond Market and AI Investments - Alphabet has raised $32 billion in the debt markets, with a recent bond offering of $11 billion being oversubscribed nearly 10 times, indicating strong investor confidence [5][6][9] - The issuance of a 100-year bond reflects the market's belief in Alphabet's long-term stability and growth potential, despite concerns about the AI bubble [7][10] - Analysts project over $4 trillion in cumulative hyperscaler spending through 2030, highlighting the significant investment in AI infrastructure [8][24] Group 4: Software Sector - The software sector is experiencing volatility due to fears surrounding AI, but some analysts believe these fears are overstated, suggesting that enterprise software will remain relevant [13][15] - Companies in the software space are advised to adapt to AI integration rather than fear obsolescence, as the transition will take time [17][19] - There are pockets of opportunity within the software sector, particularly in cybersecurity and AI infrastructure, as companies look to embed AI into their solutions [19][20][24]

Core Insights - Spotify Technology's shares increased over 11% in premarket trading following a strong fourth-quarter earnings report that surpassed analyst expectations, driven by user growth and improved profitability [1] Financial Performance - The company reported earnings per share of €4.43 for the fourth quarter, significantly higher than the consensus estimate of €2.85 [2] - Revenue for the quarter rose 7% year over year to €4.53 billion, slightly above expectations of €4.52 billion, representing a 13% growth on a constant-currency basis [2] - Gross margin improved to 33.1%, an increase of 83 basis points from the previous year, while operating income surged 47% year over year to €701 million, resulting in an operating margin of 15.5% [3] User Growth - Monthly active users reached 751 million, exceeding analyst projections of 745.24 million, marking an 11% increase from the previous year [3] - Premium subscribers grew by 10% year over year to 290 million, including 9 million net additions during the quarter [3] Future Outlook - For the first quarter of 2026, Spotify forecasts revenue of €4.5 billion, slightly below the consensus estimate of €4.57 billion [4] - The company anticipates monthly active users to rise to 759 million, surpassing analyst expectations of 752.45 million [4]

Core Insights - Spotify's stock has rallied approximately 16% following a strong fourth quarter earnings report, beating both revenue and earnings expectations [1][3] - The company reported an 11% year-over-year increase in monthly active users and a 10% rise in premium subscribers [1] Financial Performance - Spotify's revenue increased by 10%, indicating strong growth in its subscriber base [8][10] - The company is seen as undervalued, with potential for further revenue growth through price increases and expansion into new content areas [4][10] Market Position and Strategy - Spotify is evolving from a music streaming service to a multimedia platform, expanding into audiobooks, podcasts, and live music ticketing [5][14] - The company has a significant number of audiobooks (500,000) and video podcasts (50,000), showcasing its diversification strategy [14][16] Subscriber Growth and Pricing Power - The growth in premium subscriptions is crucial for Spotify, with the company expected to continue raising prices without significant subscriber loss [6][11] - The pricing strategy is considered conservative, allowing room for future increases as Spotify expands its content offerings [11][12] Competitive Landscape - Spotify's partnership with Netflix is a distribution deal aimed at increasing visibility and audience reach, rather than a merger [16][18] - The competitive threat from platforms like YouTube is acknowledged, emphasizing the need for Spotify to innovate in advertising and content integration [19][21] Risks and Challenges - There are concerns regarding artist satisfaction, as many artists feel undercompensated for their streams, which could impact Spotify's growth and content acquisition strategies [22][23] - The integration of AI in content creation raises apprehensions among creatives, which could affect Spotify's relationships with artists [23]

Yeah. Still playing the cat and mouse game here, Paul. They did stop short of actually raising the offer, but yes, you're right.They are offering now this almost $1.80% per share to cover the termination fee with, you know, the Netflix deal as well as some of the financing costs. And then, of course, as you just mentioned, the ticking fee. I don't know if this will necessarily fly with the Warner Brothers Discovery Board.I think this is just paramount, exhausting all of its options before, you know, they ac ...

Paramount Acquisition Bid - Paramount is currently offering nearly $1.80 per share to cover termination fees and financing costs related to the Netflix deal, but has not raised the initial $30 bid [1] - The company is exploring all options before potentially increasing the bid, indicating a willingness to negotiate further as the situation evolves [2] - Concerns arise regarding the company's ability to raise the bid without incurring excessive debt, which could hinder future growth and focus on deleveraging [3][5] Debt and Leverage Concerns - If Paramount raises its bid to $32, $33, or $34 per share, it could result in a leverage ratio of approximately 7 to 7.3 times, raising concerns about the sustainability of such debt levels [4][5] - Historical context shows that high leverage can distract companies from growth initiatives, as seen with Warner Brothers Discovery, which faced significant debt challenges [5][6] Warner Brothers Shareholder Response - As of now, only about 7% of Warner Brothers shares have been tendered at the $30 bid, indicating that shareholders are holding out for a higher offer [7] - The expiration date for Paramount's proxy bid is set for February 20, which will be a critical date to monitor for any developments [7] Spotify User Growth and Pricing Power - Spotify has added a record 38 million users, bringing its total to 751 million, surpassing analyst expectations [8][10] - The company has consistently added 28 to 30 million subscribers annually, showing no signs of slowing down in user acquisition [10] - Spotify's pricing power is bolstered by its user interface and content offerings, allowing for potential price increases, as evidenced by a recent price hike to $13 for an individual plan in the U.S. [11][12] Market Reaction - Following the positive user growth results, Spotify's stock rose by 19%, marking the largest increase since going public, indicating strong market confidence in the company's performance [13]

Market Overview - The US market is experiencing modest gains, with the Dow up approximately 350 points and the S&P 500 attempting to reach a new record close [1] - Consumer discretionary stocks are performing well despite retail sales data showing no growth for the holiday season, which was below the expected increase of 0.4% [1] - Spotify shares surged nearly 17% following strong subscriber growth and improved margins, marking its best gain in about a year [1] Retail Sales and Consumer Behavior - December retail sales data indicated flat year-over-year sales, contrasting with a 6.4% increase in holiday spending across all generations [1][2] - High-income households (earning $125,000 or more) increased their holiday spending by 29%, while mid and low-income cohorts reduced spending by about 4% [2] - The K-shaped economy is evident, with wealthier consumers driving spending while lower-income consumers focus on essentials [2] Company Earnings and Forecasts - CVS reported a strong fourth quarter, with revenue from healthcare benefits rising 10% to approximately $36 billion and pharmacy services revenue increasing by 9% to about $51 billion [5] - CVS's profit guidance for 2026 is set between $7 and $7.20 per share, with a cash forecast of $9 billion for the year [5][6] - Coca-Cola's shares fell over 1% after a disappointing forecast, while S&P Global's shares dropped 8% due to a weak outlook [1] Streaming Industry Insights - Spotify's record user growth is attributed to innovative marketing strategies like its Wrapped campaign and curated playlists [1][45] - The company aims to maintain its market dominance by continuously engaging new users and enhancing its service offerings [45] Biotech Sector Developments - The biotech industry is expected to see an increase in M&A activity, with companies like Halosime actively acquiring startups to enhance drug delivery technologies [4] - Halosime's recent acquisitions focus on subcutaneous drug delivery, which could transform patient care by reducing the need for lengthy infusion treatments [4] Travel and Hospitality Sector - Marriott reported strong demand for travel, particularly in the luxury segment, despite challenges from government shutdowns affecting business travel [27][29] - The company anticipates continued growth in revenue per available room (RevPAR) and has a robust pipeline of new hotel openings [29]

Core Insights - Spotify reported its best quarter of user growth ever, with significant increases in both revenue and user metrics, leading to a surge in stock price [1] Financial Performance - Spotify's revenue for the fourth quarter was 4.53 billion euros ($5.39 billion), slightly exceeding estimates [1] - Earnings per share reached 4.43 euros, significantly above analyst consensus [1] - The company added 38 million net new monthly active users (MAUs) in the quarter, marking the largest quarterly increase in its history [1] User Metrics - Spotify reached 751 million MAUs and 290 million premium subscribers, both metrics surpassing expectations [1] - The company anticipates 4.5 billion euros in revenue for the first quarter, along with projections of 759 million MAUs and 293 million premium subscribers [1] Market Reaction - Following the earnings report, Spotify shares rose over 18%, although they remain down about 15% year-to-date and nearly 40% off their highs from last June [1] - The stock surge indicates growing investor confidence despite previous concerns regarding valuation and potential disruptions from AI [1] Pricing Strategy - Spotify is expected to benefit from rising subscription prices, having announced an increase in premium plan costs starting this month [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...