(SPOT) Spotify Technology - Overview
Sector: Communication Services | Industry: Internet Content & Information | Exchange: NYSE (USA) | Market Cap: 101.490m USD | Total Return: -28.9% in 12m
Avg Turnover: 841M
Qual. Beats: 0
Rev. Trend: 98.9%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Spotify Technology S.A. (SPOT) is a Sweden-based audio streaming provider operating a dual-segment business model consisting of Premium subscriptions and Ad-Supported services. The company distributes a diverse catalog of music, podcasts, and audiobooks across multiple hardware platforms, including mobile devices and smart home integrations.
The Premium segment generates revenue through recurring monthly fees for ad-free, offline access, while the Ad-Supported tier serves as a funnel for user acquisition by offering limited on-demand streaming funded by brand placements. In the broader Movies & Entertainment sub-industry, streaming platforms increasingly rely on proprietary podcast content and algorithmic discovery tools to reduce royalty-related margin pressure and improve user retention.
Investors can evaluate the company’s long-term margin expansion goals by reviewing the detailed financial breakdowns available on ValueRay.
Beyond its core streaming operations, Spotify provides integrated marketing, distribution, and research and development services to support its global infrastructure. Headquartered in Stockholm, the company maintains a dominant market share in the global audio landscape by leveraging a direct-to-consumer sales model and strategic partnerships with telecommunications providers.
- Monthly Active User growth in emerging markets drives long-term scale
- Premium subscription price increases improve average revenue per user
- Podcast and audiobook investments expand gross margins beyond music royalties
- Operating expense reductions and workforce streamlining accelerate path to profitability
- Renewed licensing agreements with major music labels impact variable cost structures
| Net Income: 2.72b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.24 > 0.02 and ΔFCF/TA 3.60 > 1.0 |
| NWC/Revenue: 28.27% < 20% (prev 17.77%; Δ 10.50% < -1%) |
| CFO/TA 0.25 > 3% & CFO 3.24b > Net Income 2.72b |
| Net Debt (-8.28b) to EBITDA (2.75b): -3.01 < 3 |
| Current Ratio: 2.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (209.3m) vs 12m ago -0.46% < -2% |
| Gross Margin: 32.29% > 18% (prev 31.10%; Δ 1.20% > 0.5%) |
| Asset Turnover: 136.4% > 50% (prev 128.2%; Δ 8.28% > 0%) |
| Interest Coverage Ratio: 84.99 > 6 (EBIT TTM 2.65b / Interest Expense TTM 31.1m) |
| A: 0.38 (Total Current Assets 9.67b - Total Current Liabilities 4.69b) / Total Assets 13.1b |
| B: -0.01 (Retained Earnings -124.1m / Total Assets 13.1b) |
| C: 0.21 (EBIT TTM 2.65b / Avg Total Assets 12.9b) |
| D: 1.57 (Book Value of Equity 8.02b / Total Liabilities 5.12b) |
| Altman-Z'' = 5.47 = AAA |
| DSRI: 0.90 (Receivables 777.8m/793.4m, Revenue 17.6b/16.2b) |
| GMI: 0.96 (GM 31.10% / 32.29%) |
| AQI: 0.86 (AQ_t 0.23 / AQ_t-1 0.27) |
| SGI: 1.08 (Revenue 17.6b / 16.2b) |
| TATA: -0.04 (NI 2.72b - CFO 3.24b) / TA 13.1b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of June 08, 2026, the stock is trading at USD 496.95 with a total of 1,609,106 shares traded.
Over the past week, the price has changed by -0.15%,
over one month by +16.26%,
over three months by -8.80% and
over the past year by -28.92%.
Spotify Technology has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy SPOT.
- StrongBuy: 19
- Buy: 6
- Hold: 13
- Sell: 2
- StrongSell: 0
| Analysts Target Price | 609.4 | 22.6% |
Market Cap EUR = 87.2b (101b USD * 0.8593 USD.EUR)
P/E Trailing = 32.9053
P/E Forward = 34.3643
P/S = 5.7898
P/B = 11.1781
P/EG = 1.716
Revenue TTM = 17.6b EUR
EBIT TTM = 2.65b EUR
EBITDA TTM = 2.75b EUR
Long Term Debt = 433.0m EUR (from longTermDebtTotal, last fiscal year)
Short Term Debt = 62.1m EUR (from shortTermDebt, last quarter)
Debt = 476.5m EUR (from shortLongTermDebtTotal, last quarter) (leases 476.0m already included)
Net Debt = -8.28b EUR (calculated: Debt 476.5m - CCE 8.76b)
Enterprise Value = 78.9b EUR (87.2b + Debt 476.5m - CCE 8.76b)
Interest Coverage Ratio = 84.99 (Ebit TTM 2.65b / Interest Expense TTM 31.1m)
EV/FCF = 24.79x (Enterprise Value 78.9b / FCF TTM 3.18b)
FCF Yield = 4.03% (FCF TTM 3.18b / Enterprise Value 78.9b)
FCF Margin = 18.09% (FCF TTM 3.18b / Revenue TTM 17.6b)
Net Margin = 15.45% (Net Income TTM 2.72b / Revenue TTM 17.6b)
Gross Margin = 32.29% ((Revenue TTM 17.6b - Cost of Revenue TTM 11.9b) / Revenue TTM)
Gross Margin QoQ = 32.87% (prev 33.08%)
Tobins Q-Ratio = 6.01 (Enterprise Value 78.9b / Total Assets 13.1b)
Interest Expense / Debt = 6.53% (Interest Expense 31.1m / Debt 476.5m)
Taxrate = 4.51% (128.6m / 2.85b)
NOPAT = 2.53b (EBIT 2.65b * (1 - 4.51%))
Current Ratio = 2.06 (Total Current Assets 9.67b / Total Current Liabilities 4.69b)
Debt / Equity = 0.06 (Debt 476.5m / totalStockholderEquity, last quarter 8.02b)
Debt / EBITDA = -3.01 (Net Debt -8.28b / EBITDA 2.75b)
Debt / FCF = -2.60 (Net Debt -8.28b / FCF TTM 3.18b)
Total Stockholder Equity = 7.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 21.08% (Net Income 2.72b / Total Assets 13.1b)
RoE = 35.34% (Net Income TTM 2.72b / Total Stockholder Equity 7.70b)
RoCE = 32.54% (EBIT 2.65b / Capital Employed (Equity 7.70b + L.T.Debt 433.0m))
RoIC = 33.11% (NOPAT 2.53b / Invested Capital 7.63b)
WACC = 8.87% (E(87.2b)/V(87.7b) * Re(8.88%) + D(476.5m)/V(87.7b) * Rd(6.53%) * (1-Tc(0.05)))
Discount Rate = 8.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 2.95%
[DCF] Terminal Value 76.32% ; FCFF base≈2.95b ; Y1≈3.39b ; Y5≈4.98b
[DCF] Fair Price = 374.7 (EV 68.8b - Net Debt -8.28b = Equity 77.1b / Shares 205.6m; r=8.87% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.41 | # QB: 0
Revenue Correlation: 98.94 | Revenue CAGR: 14.25% | SUE: 0.50 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.78 | Chg30d=-1.55% | Revisions=-33% | Analysts=20
EPS next Quarter (2026-09-30): EPS=2.96 | Chg30d=-3.89% | Revisions=-60% | Analysts=19
EPS current Year (2026-12-31): EPS=12.80 | Chg30d=-0.68% | Revisions=-36% | GrowthEPS=+21.8% | GrowthRev=+13.4%
EPS next Year (2027-12-31): EPS=15.84 | Chg30d=-0.93% | Revisions=-43% | GrowthEPS=+23.8% | GrowthRev=+14.2%
[Analyst] Revisions Ratio: -60%