Spotify Q1 2026 Earnings Release

Spotify Technology S.A. reported its Q1 2026 results, with all Key Performance Indicators (KPIs) meeting or exceeding guidance. The company added 10 million Monthly Active Users (MAUs), exceeding the guidance of 8 million, and achieved 3 million Premium Subscriber net additions, in line with expectations. Total revenue reached €4.5 billion, an 8% year-over-year increase (14% on a constant currency basis), in line with guidance. Gross Margin was a Q1 record at 33.0%, exceeding guidance and showing a year-over-year expansion of 133 basis points. Operating Income of €715 million outperformed due to lower Social Charges and strong Gross Margin, with Social Charges coming in €49 million below forecast due to share price movements. Free Cash Flow reached €824 million in Q1, contributing to a Last Twelve Months (LTM) Free Cash Flow of €3.2 billion. The company is well-positioned for improved growth and margins in 2026, with ongoing investments to support long-term potential. Product innovations include AI-powered personalization features like Taste Profile and Prompted Playlist, and enhanced music insights through SongDNA and About the Song. Audiobook discovery was expanded with Audiobook Charts in the U.S. and U.K.