Spotify Technology SA (NYSE:SPOT) Q2 2025 Earnings Miss Estimates, Shares Drop Sharply

Spotify Technology SA (NYSE:SPOT) reported its second-quarter 2025 earnings, missing analyst expectations on both revenue and earnings per share (EPS). The company’s results, coupled with a weaker-than-expected outlook, triggered a negative market reaction, with shares falling sharply in premarket trading.

Key Earnings Highlights

• Revenue Miss: Spotify reported Q2 2025 revenue of $4.11 billion, falling short of the consensus estimate of $4.35 billion.
• Unexpected Loss: The company posted a loss per share of $0.41, a stark contrast to the expected profit of $1.94 per share.
• Subscriber Growth Beat: Despite the financial miss, Spotify exceeded expectations in user growth, maintaining its position as the world’s leading audio streaming platform with 696 million monthly active users, including 276 million premium subscribers.

Market Reaction

Following the earnings release, Spotify’s stock dropped approximately 5.6% in premarket trading, reflecting investor disappointment over the revenue shortfall and surprise loss. The decline extends a recent downward trend, with shares down 9.3% over the past month. Analysts attribute the sell-off to concerns over profitability, particularly as the company faces higher operational costs, including increased taxes related to employee compensation.

Outlook vs. Analyst Estimates

Spotify’s third-quarter profit forecast fell below Wall Street expectations, with the company citing higher tax expenses as a key factor. Analysts had projected Q3 2025 revenue of $4.57 billion, but Spotify’s guidance suggests a more cautious outlook. The full-year revenue estimate stands at $18.26 billion, while EPS expectations for 2025 remain under scrutiny given the Q2 miss.

Press Release Summary

• The earnings call, scheduled for July 29, 2025, at 8:00 a.m. Eastern Time, will feature CEO Daniel Ek and other executives addressing investor questions.
• Spotify emphasized its dominance in the audio streaming market, with over 100 million tracks, 7 million podcasts, and 350,000 audiobooks available on its platform.
• A live webcast and recording will be available on the company’s investor relations website.

Broader Market Context

The earnings miss comes amid a mixed earnings season, where some companies have outperformed while others, like Spotify, have struggled to meet expectations. Recent headlines highlight investor sensitivity to revenue and profit misses, particularly in the tech and streaming sectors.

For a deeper dive into Spotify’s earnings history and future estimates, visit the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.