What is the revenue and EPS growth rate for Spotify Technology year over year?

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- **User Growth Milestone**: 700M+ MAU and 281M subscribers, +17M MAU and +5M subs Q3. 
- **Revenue Beat**: €4.3B (+12% YoY), 31.6% gross margin, €806M free cash flow. 
- **Multi-Format Success**: 54% video podcast growth, 36% audiobook listening hours growth. 
- **AI Innovation**: ChatGPT integration, 200M in-app messages, Lossless audio launch. 
- **Leadership Transition**: Daniel Ek steps down as CEO; Alex & Gustav to co-lead with 1B sub goal. 
- **Ad Business Reset**: 2025 as transition year, 2026+ growth driven by programmatic ad expansion.

**【CEO Summary Section】**
- Spotify surpassed 700 million monthly active users (MAU) in Q3 2025, exceeding guidance, with 17 million MAU growth and 5 million net subscriber additions (281 million total). 
- Emphasized multi-format strategy success: 54% YoY growth in video podcast streams, 36% YoY audiobook listening hours growth, and 80% increase in video podcast consumption via Spotify Partner Program (SPP). 
- Highlighted enhanced free tier adoption driving engagement, with 25 million users using in-app messaging and 100 million monthly Jam listening hours. 
- CFO Christian Luiga reported Q3 revenue of €4.3 billion (+12% YoY), gross margin of 31.6%, and free cash flow of €806 million. 
- CFO noted SPP content cost shift from ads to premium, contributing to 50bp margin expansion, and forecast Q4 gross margin of 32.9% with 13% YoY revenue growth. 
- CEO Daniel Ek announced transition to Executive Chairman, with Alex Norström and Gustav Söderström becoming co-CEOs in January 2026. 

**【CFO Financial Commentary】**
- Total revenue: €4.3 billion (+12% YoY on constant currency). 
- Premium revenue: +13% YoY, driven by 12% subscriber growth. 
- Advertising revenue: mid-single-digit growth YoY, with programmatic ad growth offsetting direct sales decline. 
- Gross margin: 31.6% (vs. 31.1% prior quarter), benefiting from rights holder liability adjustments. 
- Operating income: €582 million (+17% YoY). 
- Free cash flow: €806 million, with €410 million in share buybacks year-to-date. 
- Q4 guidance: 745 million MAU, 289 million subscribers, and €4.5 billion revenue (+13% YoY). 

**【Q&A Key Highlights】**
- **AI Integration**: ChatGPT partnership enables personalized playlist creation, with 200 million messages sent via in-app messaging. 
- **Video Strategy**: 390 million users streamed video podcasts (54% YoY growth), with Netflix partnership to distribute Ringer content. 
- **Ad Business**: Mid-single-digit ad growth in Q3, with programmatic ad revenue up 100% YoY. 
- **Pricing**: 12% YoY subscriber growth despite price increases in 150 markets, with churn offset by enhanced free tier engagement. 
- **Leadership Transition**: Co-CEOs will focus on 1 billion subscriber goal, leveraging Spotify's 3% global penetration and TAM across music, podcasts, audiobooks. 
- **Risk Management**: Ad revenue growth expected to accelerate in 2H2026, with 2025 viewed as a transition year for ad business restructuring.

Spotify Technology S.A. (SPOT) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SPOT

SPOT fundamentals

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