Detailed financial statements for Spotify Technology S.A. (SPOT): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers online and offline streaming access to its catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly to end users and partners.
Analysis Summary
Spotify Technology S.A. reported revenue of 17.19B EUR in the most recent fiscal year, growing at a 5-year CAGR of 16.9%.
Trailing-twelve-month margins: gross margin 33.1%, operating margin 14.5%, net margin 15.5%. Free cash flow grew at 73.8% CAGR over 5 years.
At $593.44 (closing price, October 30, 2026), SPOT trades at a P/E of 36.10 and an ROE of 35.04%. Market capitalisation stands at $122.0B, placing it among large-cap names.
Balance sheet quality for SPOT: current ratio of 1.7, net cash position of 7.51B EUR. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of 2.87B EUR represents 130% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2.95B EUR | 4.09B EUR | 5.26B EUR | 6.76B EUR | 7.88B EUR | 9.67B EUR | 11.73B EUR | 13.25B EUR | 15.67B EUR | 17.19B EUR |
| Cost of Revenue | 2.55B EUR | 3.24B EUR | 3.91B EUR | 5.04B EUR | 5.87B EUR | 7.08B EUR | 8.80B EUR | 9.85B EUR | 10.95B EUR | 11.69B EUR |
| Gross Profit | 401.0M EUR | 849.0M EUR | 1.35B EUR | 1.72B EUR | 2.02B EUR | 2.59B EUR | 2.93B EUR | 3.40B EUR | 4.72B EUR | 5.50B EUR |
| Research & Development | 207.0M EUR | 396.0M EUR | 493.0M EUR | 615.0M EUR | 837.0M EUR | 912.0M EUR | 1.39B EUR | 1.73B EUR | 1.49B EUR | 1.39B EUR |
| Selling, General & Admin | 543.0M EUR | 831.0M EUR | 903.0M EUR | 1.18B EUR | 1.47B EUR | 1.58B EUR | 2.20B EUR | 2.12B EUR | 1.87B EUR | 1.91B EUR |
| Operating Expenses | 750.0M EUR | 1.23B EUR | 1.40B EUR | 1.79B EUR | 2.31B EUR | 2.50B EUR | 3.58B EUR | 3.84B EUR | 3.36B EUR | 3.30B EUR |
| Operating Income | -349.0M EUR | -378.0M EUR | -43.0M EUR | -73.0M EUR | -293.0M EUR | 94.0M EUR | -659.0M EUR | -446.0M EUR | 1.36B EUR | 2.20B EUR |
| EBITDA | -492.0M EUR | -1.18B EUR | -135.0M EUR | -1.0M EUR | -544.0M EUR | 416.0M EUR | -158.0M EUR | -309.0M EUR | 1.50B EUR | 2.36B EUR |
| Interest Expense | 5.0M EUR | 508.8M EUR | 6.0M EUR | 42.4M EUR | 50.2M EUR | 40.0M EUR | 41.0M EUR | 38.0M EUR | 36.0M EUR | 31.0M EUR |
| Pre-tax Income | -535.0M EUR | -1.23B EUR | -173.0M EUR | -131.0M EUR | -709.0M EUR | 249.0M EUR | -370.0M EUR | -505.0M EUR | 1.34B EUR | 2.22B EUR |
| Income Tax | 4.0M EUR | 2.0M EUR | -95.0M EUR | 55.0M EUR | -128.0M EUR | 283.0M EUR | 60.0M EUR | 27.0M EUR | 203.0M EUR | 12.0M EUR |
| Net Income | -539.0M EUR | -1.24B EUR | -78.0M EUR | -186.0M EUR | -581.0M EUR | -34.0M EUR | -430.0M EUR | -532.0M EUR | 1.14B EUR | 2.21B EUR |
| EPS | $-3.21 | $-6.93 | $-0.44 | $-1.03 | $-3.10 | $-0.18 | $-2.23 | $-2.73 | $5.67 | $10.77 |
| EPS (Diluted) | $-3.21 | $-6.93 | $-0.51 | $-1.03 | $-3.10 | $-1.03 | $-2.93 | $-2.73 | $5.50 | $10.51 |
| Shares Outstanding (Diluted) | 167.8 M | 178.1 M | 181.2 M | 181.0 M | 187.6 M | 193.9 M | 195.8 M | 194.7 M | 207.0 M | 210.5 M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | 4.53B EUR | 4.53B EUR | 4.78B EUR | 5.72B EUR |
| Gross Profit | 1.50B EUR | 1.50B EUR | 1.60B EUR | 1.88B EUR |
| Operating Income | 701.0M EUR | 715.0M EUR | 655.0M EUR | 773.1M EUR |
| EBITDA | 1.05B EUR | 970.0M EUR | 757.0M EUR | 811.1M EUR |
| Net Income | 1.17B EUR | 721.0M EUR | 545.0M EUR | 596.0M EUR |
| EPS | $5.71 | $3.50 | $2.65 | $2.90 |
| EPS (Diluted) | $4.39 | $3.45 | $2.61 | $2.86 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | 755.0M EUR | 477.0M EUR | 891.0M EUR | 1.06B EUR | 1.15B EUR | 2.74B EUR | 2.48B EUR | 3.11B EUR | 4.78B EUR | 5.26B EUR |
| Short-term Investments | 830.0M EUR | 1.03B EUR | 915.0M EUR | 692.0M EUR | 596.0M EUR | 756.0M EUR | 867.0M EUR | 1.10B EUR | 2.67B EUR | 4.21B EUR |
| Receivables | 306.0M EUR | 360.0M EUR | 402.0M EUR | 406.0M EUR | 468.0M EUR | 626.0M EUR | 695.0M EUR | 878.0M EUR | 799.0M EUR | 918.0M EUR |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | 1.91B EUR | 1.90B EUR | 2.25B EUR | 2.23B EUR | 2.37B EUR | 4.37B EUR | 4.35B EUR | 5.26B EUR | 8.38B EUR | 10.50B EUR |
| Property, Plant & Equipment | 85.0M EUR | 73.0M EUR | 197.0M EUR | 780.0M EUR | 757.0M EUR | 809.0M EUR | 765.0M EUR | 547.0M EUR | 414.0M EUR | 422.0M EUR |
| Goodwill | 73.0M EUR | 135.0M EUR | 146.0M EUR | 478.0M EUR | 736.0M EUR | 894.0M EUR | 1.17B EUR | 1.14B EUR | 1.20B EUR | 1.08B EUR |
| Intangible Assets | 7.0M EUR | 27.0M EUR | 28.0M EUR | 58.0M EUR | 97.0M EUR | 89.0M EUR | 127.0M EUR | 84.0M EUR | 48.0M EUR | 41.0M EUR |
| Total Assets | 2.10B EUR | 3.11B EUR | 4.34B EUR | 5.12B EUR | 6.33B EUR | 7.17B EUR | 7.64B EUR | 8.35B EUR | 12.01B EUR | 15.02B EUR |
| Accounts Payable | 139.0M EUR | 242.0M EUR | 295.0M EUR | 377.0M EUR | 434.0M EUR | 534.0M EUR | 588.0M EUR | 662.0M EUR | 933.0M EUR | 783.0M EUR |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.46B EUR |
| Total Current Liabilities | 1.22B EUR | 1.86B EUR | 2.15B EUR | 2.44B EUR | 2.90B EUR | 3.23B EUR | 3.52B EUR | 4.09B EUR | 4.45B EUR | 6.08B EUR |
| Long-term Debt | 1.11B EUR | 944.0M EUR | 0 | 0 | 0 | 1.20B EUR | 1.13B EUR | 1.20B EUR | 1.54B EUR | 0 |
| Total Liabilities | 2.34B EUR | 2.87B EUR | 2.24B EUR | 3.08B EUR | 3.52B EUR | 5.05B EUR | 5.24B EUR | 5.82B EUR | 6.48B EUR | 6.69B EUR |
| Retained Earnings | -1.19B EUR | -2.43B EUR | -2.50B EUR | -2.71B EUR | -3.29B EUR | -3.22B EUR | -3.65B EUR | -4.18B EUR | -3.04B EUR | -832.0M EUR |
| Total Equity | -240.0M EUR | 238.0M EUR | 2.09B EUR | 2.04B EUR | 2.81B EUR | 2.12B EUR | 2.40B EUR | 2.52B EUR | 5.53B EUR | 8.33B EUR |
| Total Debt | 1.11B EUR | 945.0M EUR | 0 | 622.0M EUR | 577.0M EUR | 1.78B EUR | 1.68B EUR | 1.70B EUR | 2.08B EUR | 1.96B EUR |
| Net Debt | -473.0M EUR | -564.0M EUR | -1.81B EUR | -1.14B EUR | -1.17B EUR | -1.72B EUR | -1.67B EUR | -2.52B EUR | -5.37B EUR | -7.51B EUR |
| Working Capital | 689.0M EUR | 38.0M EUR | 97.0M EUR | -208.0M EUR | -534.0M EUR | 1.15B EUR | 836.0M EUR | 1.17B EUR | 3.93B EUR | 4.41B EUR |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | 5.46B EUR | 5.26B EUR | 5.25B EUR | 5.94B EUR |
| Total Assets | 14.69B EUR | 15.02B EUR | 13.13B EUR | 13.75B EUR |
| Total Liabilities | 6.91B EUR | 6.69B EUR | 5.12B EUR | 5.36B EUR |
| Total Equity | 7.78B EUR | 8.33B EUR | 8.01B EUR | 8.38B EUR |
| Total Debt | 2.25B EUR | 1.96B EUR | 476.0M EUR | 466.0M EUR |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -539.0M EUR | -1.24B EUR | -78.0M EUR | -186.0M EUR | -581.0M EUR | -34.0M EUR | -430.0M EUR | -532.0M EUR | 1.14B EUR | 2.21B EUR |
| Depreciation & Amortization | 38.0M EUR | 54.0M EUR | 32.0M EUR | 87.0M EUR | 111.0M EUR | 127.0M EUR | 171.0M EUR | 158.0M EUR | 121.0M EUR | 102.0M EUR |
| Stock-based Compensation | 53.0M EUR | 65.0M EUR | 88.0M EUR | 122.0M EUR | 176.0M EUR | 223.0M EUR | 381.0M EUR | 321.0M EUR | 267.0M EUR | 247.0M EUR |
| Change in Working Capital | 300.0M EUR | 420.0M EUR | 251.0M EUR | 451.0M EUR | 317.0M EUR | -36.0M EUR | 191.0M EUR | 464.0M EUR | 376.0M EUR | 248.0M EUR |
| Operating Cash Flow | 101.0M EUR | 179.0M EUR | 344.0M EUR | 573.0M EUR | 259.0M EUR | 361.0M EUR | 46.0M EUR | 680.0M EUR | 2.30B EUR | 2.93B EUR |
| Capital Expenditure | -27.0M EUR | -46.0M EUR | -125.0M EUR | -135.0M EUR | -78.0M EUR | -85.0M EUR | -25.0M EUR | -6.0M EUR | -17.0M EUR | -61.0M EUR |
| Acquisitions | -7.3M EUR | -49.0M EUR | -9.0M EUR | -331.0M EUR | -336.0M EUR | -115.0M EUR | -306.0M EUR | -7.0M EUR | -10.0M EUR | -18.0M EUR |
| Stock Repurchased | 0 | 0 | -72.0M EUR | -438.0M EUR | -30.0M EUR | -143.0M EUR | -2.0M EUR | -68.0M EUR | -135.0M EUR | -439.0M EUR |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 74.0M EUR | 133.0M EUR | 219.0M EUR | 438.0M EUR | 181.0M EUR | 276.0M EUR | 21.0M EUR | 674.0M EUR | 2.28B EUR | 2.87B EUR |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | 829.0M EUR | 856.0M EUR | 836.0M EUR | 816.0M EUR |
| Capital Expenditure | -23.0M EUR | -22.0M EUR | -5.0M EUR | -20.0M EUR |
| Free Cash Flow | 806.0M EUR | 834.0M EUR | 831.0M EUR | 796.0M EUR |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | 75.0M EUR | 57.0M EUR | 56.0M EUR | 86.0M EUR |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +38.6% | +28.6% | +28.6% | +16.5% | +22.7% | +21.3% | +13.0% | +18.3% | +9.7% | |
| Net Income Growth (YoY) | -129.1% | +93.7% | -138.5% | -212.4% | +94.1% | -1,164.7% | -23.7% | +313.9% | +94.4% | |
| EPS Growth (YoY) | -115.9% | +93.7% | -134.1% | -201.0% | +94.2% | -1,138.9% | -22.4% | +307.7% | +89.9% | |
| Shares Change (YoY) | +6.2% | +1.7% | -0.1% | +3.7% | +3.4% | +1.0% | -0.6% | +6.3% | +1.7% | |
| FCF Growth (YoY) | +79.7% | +64.7% | +100.0% | -58.7% | +52.5% | -92.4% | +3,109.5% | +238.9% | +25.7% | |
| Gross Margin | 13.6% | 20.8% | 25.7% | 25.5% | 25.6% | 26.8% | 25.0% | 25.6% | 30.1% | 32.0% |
| Operating Margin | -11.8% | -9.2% | -0.8% | -1.1% | -3.7% | 1.0% | -5.6% | -3.4% | 8.7% | 12.8% |
| EBITDA Margin | -16.7% | -28.7% | -2.6% | -0.0% | -6.9% | 4.3% | -1.3% | -2.3% | 9.6% | 13.7% |
| Net Margin | -18.3% | -30.2% | -1.5% | -2.7% | -7.4% | -0.4% | -3.7% | -4.0% | 7.3% | 12.9% |
| FCF Margin | 2.5% | 3.3% | 4.2% | 6.5% | 2.3% | 2.9% | 0.2% | 5.1% | 14.6% | 16.7% |
| Effective Tax Rate | -0.7% | -0.2% | 54.9% | -42.0% | 18.1% | 113.7% | -16.2% | -5.3% | 15.1% | 0.5% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.44 | $0.75 | $1.21 | $2.42 | $0.96 | $1.42 | $0.11 | $3.46 | $11.03 | $13.64 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 167.8 M | 178.1 M | 177.2 M | 181.0 M | 187.6 M | 191.3 M | 192.9 M | 194.7 M | 200.6 M | 205.4 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 35.04% |
| Return on Invested Capital | 23.55% |
| Return on Assets | 18.68% |
| Gross Margin | 33.08% |
| Operating Margin | 14.54% |
| Net Margin | 15.52% |
Financial Health
| Debt / Equity | 0.05 |
| Current Ratio | 2.13 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 11.01 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -44.08 | -17.91 | -224.94 | -129.47 | -83.05 | -1,143.37 | -33.06 | -62.27 | 76.20 | 45.89 |
| P/B | -98.92 | 92.89 | 8.37 | 11.85 | 17.22 | 18.58 | 5.92 | 13.12 | 15.69 | 12.19 |
| P/S | 8.04 | 5.41 | 3.33 | 3.57 | 6.13 | 4.07 | 1.21 | 2.50 | 5.53 | 5.91 |
| Gross Margin | 13.6% | 20.8% | 25.7% | 25.5% | 25.6% | 26.8% | 25.0% | 25.6% | 30.1% | 32.0% |
| Operating Margin | -11.8% | -9.2% | -0.8% | -1.1% | -3.7% | 1.0% | -5.6% | -3.4% | 8.7% | 12.8% |
| Net Margin | -18.3% | -30.2% | -1.5% | -2.7% | -7.4% | -0.4% | -3.7% | -4.0% | 7.3% | 12.9% |
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