Group 1 - Spotify forecasts first-quarter operating income of 660 million euros ($786.13 million), exceeding analysts' average estimate of 652.3 million euros [3] - The company projects quarterly revenue of 4.5 billion euros, slightly below the estimate of 4.57 billion euros [3] - Spotify's premium subscribers grew 10% to 290 million in the fourth quarter, compared to an estimate of 290.9 million [5] Group 2 - The company raised the price of its monthly premium subscription plan by $1 to $12.99 in the U.S., Estonia, and Latvia, following a similar increase in over 150 markets in 2025 [4] - Spotify's quarterly outlook for 759 million monthly active users (MAU) is above the estimate of 753 million, while the prediction for a 3 million increase in premium subscribers to 293 million is below estimates [4] - Gross profit increased by 10% year-over-year, aided by a 10% decline in operating expenses, resulting in a gross profit margin rise to 33.1% from 31.6% in the prior quarter [5] Group 3 - The company experienced its slowest revenue growth since its 2018 market listing, despite benefiting from strong user growth and price hikes [2] - Spotify has introduced an AI-powered playlist feature and invested in video podcasts, including a deal with Netflix, to enhance its competitive position against Apple and Amazon [2] - The total number of monthly active users reached 751 million, with net additions of 38 million exceeding expectations [5]

Core Viewpoint - Spotify forecasts first-quarter earnings that exceed Wall Street estimates, indicating strong user growth despite recent price hikes, which has resulted in a 10% increase in shares during premarket trading [1] Group 1: Financial Performance - The company anticipates earnings that are above market expectations for the first quarter [1] - The positive earnings forecast is attributed to the successful attraction of new users [1] Group 2: Market Reaction - Following the earnings forecast, Spotify's shares rose by 10% in premarket trading [1]

Core Insights - The Swedish audiostreaming giant's premium subscribers increased by 10% year-over-year to 290 million [1] Company Summary - The company has achieved a significant growth in its premium subscriber base, reflecting a positive trend in user engagement and market penetration [1]

February 5, 2026 FOURTH QUARTER AND FULL- YEAR 2025 OPERATING AND FINANCIAL RESULTS 1 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about our outlook and our future financial and operating results, our plans, objectives, expectations and intentions with respect to future operations, products and services; and o ...

Group 1 - Spotify Technology S.A. is a leading audio streaming service with approximately 700 million monthly active users and over 275 million paying subscribers, controlling about one-third of the global music streaming market [2] - The company operates in two segments: premium (approximately 90% of revenues) and ad-supported (approximately 10% of revenues) [2] - Recently, Spotify has begun to raise prices after not doing so for over a decade, with limited impact on customer churn [2] Group 2 - The company has several growth levers, including adding new users, converting ad-supported users to premium subscribers, and implementing price increases [2] - Despite the potential of Spotify as an investment, some analysts believe that certain AI stocks may offer greater upside potential and carry less downside risk [3]

Core Insights - Spotify Technology S.A. (NYSE:SPOT) is projected to have strong earnings growth over the next five years, supported by recent price hikes for premium subscriptions [1] - Jefferies has adjusted its price target for Spotify to $750 from $800 while maintaining a 'Buy' rating, citing revenue acceleration projections and sustained subscriber momentum [2] Group 1: Subscription Pricing - Starting from February, Spotify will increase its premium subscription rate from $11.99/month to $12.99/month [1] - The last price increase for U.S. users occurred in June 2024, when the rate was raised to $11.99/month [1] - Premium subscribers in the U.S., Estonia, and Latvia will receive notifications regarding the subscription updates [1] Group 2: Analyst Insights - Jefferies maintains Spotify as a "Top Pick" due to expected revenue growth driven by price increases and subscriber retention [2] - The firm describes Spotify as an "undermonetized asset" with a favorable outlook, estimating free cash flow per share for 2027 to be nearly 15% above consensus [2] Group 3: Company Overview - Spotify Technology S.A. is headquartered in Luxembourg and provides audio streaming subscription services, operating through two segments: Premium and Ad-Supported [3]

Core Insights - TCW Concentrated Large Cap Growth Fund reported a return of +4.11% in Q3 2025, underperforming the Russell 1000 Growth Index which returned +10.51% [1] - The fund highlighted Spotify Technology S.A. as a key holding, noting its significant market position and growth potential [2][3] Group 1: Fund Performance - The equity markets experienced a rally in Q3 2025, driven by optimism around AI investments and positive corporate earnings [1] - The fund's performance lagged behind the benchmark index, indicating potential challenges in stock selection or market conditions [1] Group 2: Spotify Technology S.A. - Spotify Technology S.A. is a leading audio streaming service with approximately 700 million monthly active users and over 275 million paying subscribers, controlling about one-third of the global music streaming market [3] - The company operates in two segments: premium (approximately 90% of revenues) and ad-supported (approximately 10% of revenues) [3] - Spotify has recently begun to raise prices after a decade of stability, with limited impact on customer churn, indicating a strategic shift to enhance revenue [3] - The company is viewed as having multiple growth levers, including user acquisition, conversion of ad-supported users to premium, and further price increases [3] - As of December 24, 2025, Spotify's stock closed at $586.57, with a market capitalization of $120.771 billion [2]

Core Insights - Janus Henderson Investors reported strong global equity performance in Q3 2025, driven by loose monetary policy and AI growth momentum, with the Janus Henderson Global Sustainable Equity Fund returning 2.95% compared to a 7.27% return for the MSCI World Index [1] Group 1: Janus Henderson Global Sustainable Equity Fund - The fund's performance was impacted by Spotify Technology S.A., which was one of the biggest relative detractors due to weak results and a muted outlook, despite the fund maintaining its investment thesis on Spotify's growth opportunities [3] - Spotify's introduction of new product features and its leadership in the audio streaming market were highlighted as positive factors that could enhance its business economics [3] Group 2: Spotify Technology S.A. - Spotify's one-month return was -1.04%, but it gained 25.51% over the last 52 weeks, closing at $579.39 per share with a market capitalization of $119.293 billion on December 23, 2025 [2] - Spotify is ranked 25th among the 30 Most Popular Stocks Among Hedge Funds, with 116 hedge fund portfolios holding its shares at the end of Q3, an increase from 111 in the previous quarter [4]

Core Insights - Spotify Technology S.A. is set to introduce music videos for premium subscribers in the US and Canada by the end of December, aiming to compete with YouTube for market share [1][3] - The addition of video content is expected to enhance user engagement and attract more advertisers, following a beta launch in nearly 100 markets in 2024 [2] - The initial video catalog will include content from popular artists, and data shows that users are significantly more likely to engage with songs that have music videos [3] Company Developments - Spotify's Wrapped feature engaged over 200 million users within 24 hours, marking a 19% year-over-year increase in user engagement [3] - The company plans to increase subscription prices in the US in the first quarter of 2026, following a price hike for premium plans in over 150 markets [3] - Spotify is recognized as a leading audio streaming subscription service, providing access to songs, podcasts, and audiobooks [4]

Company Overview - Spotify Technology S.A. (NYSE:SPOT) is a global audio streaming company with over 600 million monthly active users, making it the largest music streaming service by market share [4] Investment Ratings - Benjamin Swinburne from Morgan Stanley reiterated a Buy rating on Spotify but lowered the price target from $800 to $775 [1] - Matthew Condon from Citizen JPM initiated coverage with a Buy rating and a price target of $800 [1] Industry Outlook - The Media and Entertainment sector is expected to enter 2026 strongly, supported by solid fundamentals and momentum [2] - Companies insulated from AI disruptions are anticipated to perform the best, benefiting from increased demand for premium experiences [2] Company Strengths - Spotify's multi-vertical platform includes music, podcasts, video podcasts, and audiobooks, which is seen as a key driver for revenue and free cash flow growth [3] - The platform is recognized for ongoing product innovation, advanced personalization, and broad accessibility across devices, supporting sustained user growth and providing a significant pricing edge [3]