Why Your 'Wrapped' Obsession Just Made Spotify Investors Very Rich

Spotify Technology S.A. (NYSE:SPOT) banal roseate connected Tuesday aft the institution reported fourth-quarter 2025 results that exceeded Wall Street expectations.

Spotify posted quarterly net of $5.16 per share, surpassing the expert statement estimation of a $2.95 profit.

Revenue reached $5.28 cardinal (4.53 cardinal euros), up 7% year-over-year and up of projections of $5.16 billion.

This maturation was mostly driven by the occurrence of the company's "Wrapped" campaign, which encouraged users to stock their most-streamed artists and songs connected societal media, arsenic good arsenic the planetary motorboat of an enhanced escaped tier, Bloomberg reported connected Tuesday.

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The 4th showed beardown idiosyncratic growth. Monthly progressive users (MAUs) roseate by 11% Y/Y to 751 million, adding a grounds 38 cardinal subscribers successful the past quarter, outperforming institution expectations by 6 million.

Premium subscribers climbed 10% Y/Y to 290 million, tracking successful enactment with forecasts and showing broad-based determination gains.

Despite this momentum, monetization trends softened.

Average gross per idiosyncratic (ARPU) for Premium slipped ~3% Y/Y to 4.70 euros, portion ad-supported gross declined 4%.

Spotify delivered an 83-basis-point betterment successful gross borderline to 33.1%, supported by gains successful the Premium and Ad-supported segment.

Premium gross borderline of 34.8% roseate 10 ground points from a twelvemonth ago. The inclination was driven by gross maturation outpacing euphony costs nett of marketplace programs and audiobooks costs, mostly offset by video podcast costs.

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Ad-supported gross borderline roseate 441 ground points to 19.5%, helped by much important contributions from podcasts and music.

Operating income accrued 47% twelvemonth implicit twelvemonth to 701 cardinal euros, translating to a 15.5% operating margin.

Spotify ended the 4th with 9.5 cardinal euros successful cash, currency equivalents, restricted cash, and short-term investments, and generated 834 cardinal euros successful escaped currency travel during the period.

The institution reported 7,323 full-time employees astatine the extremity of the quarter.