Spotify pops 16% on strong user growth, earnings beat

Spotify‘s stock popped 15% as the music streaming platform added more users and bolstered features in newer markets.

The stock headed for its best day Since 2019.

Here’s how the company did compared to LSEG estimates.

• Earnings per share: 4.43 euros vs 2.74 euros expected
• Revenue: 4.53 billion euros vs 4.52 billion euros expected

Revenue in the fourth quarter rose 7% year over year.

The Swedish company said monthly active users jumped 11% from a year ago to 751 million, surpassing the 744.7 million expected by analysts polled by FactSet. Paid subscribers surged 10% year over year to 290 million.

Spotify attributed strong user additions to growth in Latin America, Europe and the rest of the world and improvements to its mobile free tier. Co-CEO Alex Norström said the company recorded the most users ever added during a quarter.

The streamer’s 476 million ad-supported user numbers also beat estimates, topping the 468.9 million expected by StreetAccount.

The company also launched audiobooks in new markets and rolled out music videos for premium users, along with more artificial intelligence tools in the fourth quarter.

This month, Spotify also hiked prices for Premium users in the U.S., Estonia and Latvia. The company previously raised U.S. subscription prices in 2024 and 2023.

The music platform said 2025’s “Spotify Wrapped,” which breaks down user listening hours and most popular songs at the end of the year, was its most successful ever. Over 300 million users interacted with the feature, which collected more than 630 million shares on social media, Spotify said.

Net income grew to 1.17 billion euros ($1.39 billion), or 4.43 euros per share, from 367 million euros, or 1.76 euros per share, in the year-ago period.

Looking ahead, Spotify expects monthly active users to grow by 8 million this quarter to 759 million, surpassing a 752.4 million estimate from FactSet. Total premium subscribers are forecast to hit 293 million.

Spotify projects revenue to total 4.5 billion euros, with a 670 basis point headwind year over year from foreign exchange rates. That came up short of a 4.58 billion euros estimate.