Spotify ($SPOT) premium subscribers climbed 9% to 306M in Q3, while monthly active users reached 788M. The company now expects 316M premium subscribers and 818M monthly active users in Q4.

SPOTIFY $SPOT Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: €4,969M (Est. €4.98B) 🔴; +16% YoY 🔹 Diluted EPS: €2.48 (Est. €2.81) 🔴; -24% YoY 🔹 Gross Margin: 33.0%; +136 bps YoY 🔹 Oper Income: €672M (Est. €680M) 🔴; +15% YoY Q4’26 Guide: 🔹 Revenue: €5.2B (Est. €5.23B) 🟡 🔹 Operating Income: €820M (Est. €813M) 🟢 🔹 Gross Margin: 33.8% 🔹 MAUs: 818M 🔹 Premium Subscribers: 316M Segment Revenue: 🔹 Premium: €4,487M; +17% YoY 🔹 Ad-Supported: €482M; +10% YoY Other Q3 Metrics: 🔹 MAUs: 788M; +11% YoY 🔹 Premium Subscribers: 306M; +9% YoY 🔹 Net Income: €518M (Est. €589M) 🔴 🔹 Free Cash Flow: €735M; -9% YoY 🔹 Premium ARPU: €4.95; +9.3% YoY 🔹 Ad-Supported MAUs: 499M; +12% YoY 🔹 Operating Margin: 13.5% Key Updates: 🔹 Social Charges: €13M above forecast at €22M in current period Operating Expenses 🔹 Share repurchases: $1.1B year-to-date through October 21st 🔹 Taste Profile launched to Premium Subscribers in the U.S. 🔹 Launched Creator Memberships for eligible podcast creators

Spotify Q3 Earnings: - Revenue: €4.97B (est €4.98B) - EPS: €2.48 (vs €3.28 Y/Y) - Operating Income: €672M (+15% Y/Y) - Gross Margin: 33% (est 32.9%) - Monthly Active Users: 788M (est 788.13M) - Total Premium Subscribers: 306M (est 305.15M) - Premium Revenue: €4.49B (est €4.5B) - Sees Q4 Revenue: €5.2B (est €5.24B) - Sees Q4 Operating Income: €820M (est €803.7M) - Sees Q4 Gross Margin: 33.8% (est 33.7%) - Sees Q4 Monthly Active Users: 818M (est 819.08M) - Sees Q4 Total Premium Subscribers: 316M (est 314.72M)

Spotify is cracking down on Premium Family plan sharing. The company is introducing checks to make sure members actually live at the same address. If you fail verification, you can lose Premium and be moved to Spotify Free, meaning ads and no Premium benefits. Spotify says the check is designed to confirm the household, not track where you are.