6-K
Spotify Technology S.A. (SPOT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November, 2025
Commission File Number: 001-38438
Spotify Technology S.A.
(Translation of registrant’s name into English)
33 Boulevard Prince Henri
L-1724 Luxembourg
Grand Duchy of Luxembourg
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K
Letter to Shareholders
On November 4, 2025, Spotify Technology S.A. released its results for the quarter ended September 30, 2025 by posting its Q3 2025 Update (“Update”) on its website at investors.spotify.com. A copy of the Update is furnished herewith as Exhibit 99.1 to this Report on Form 6-K.
EXHIBIT INDEX
| Exhibit No. | Description |
|---|---|
| 99.1 | Q3 2025 Update dated November 4, 2025 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Spotify Technology S.A. | ||
|---|---|---|
| Date: November 4, 2025 | By: | /s/ Christian Luiga |
| Name: | Christian Luiga | |
| Title: | Chief Financial Officer |
Exhibit 99.1
Q3 2025 Update November 4th, 2025
Table of Contents Key Highlights Financial Summary MAUs & Subscribers Product & Platform Outlook Financial Statements Executive Summary p.03 p.04 p.06 p.13 p.16 p.20 p.23
Executive Summary USER & FINANCIAL SUMMARY Q3 2024 Q2 2025 Q3 2025 Y/Y Q/Q USERS (M) Total Monthly Active Users ("MAUs") 640 696 713 11% 2% Premium Subscribers 252 276 281 12% 2% Ad-Supported MAUs 402 433 446 11% 3% FINANCIALS (€M) Premium 3,516 3,740 3,826 9% 2% Ad-Supported 472 453 446 -6% -2% Total Revenue 3,988 4,193 4,272 7% 2% Gross Profit 1,240 1,320 1,351 9% 2% Gross Margin 31.1% 31.5% 31.6% -- -- Operating Income 454 406 582 28% 43% Operating Margin 11.4% 9.7% 13.6% -- -- Net Cash Flows From Operating Activities 715 709 829 16% 17% Free Cash Flow* 711 700 806 13% 15% * Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Our business delivered strong results in Q3, as all KPIs met or exceeded guidance to deliver strong Free Cash Flow*. The business added 17 million MAU vs. guidance for 14 million, while Subscriber net additions of 5 million were in-line. Revenue was ahead of guidance and grew 12% Y/Y on a constant currency* basis, led by Premium growth. Gross Margin of 31.6% exceeded guidance and expanded 53 bps Y/Y, while Operating Income of €582 million was better due to lower Social Charges, favorability in marketing and personnel related costs and Gross Margin strength. Social Charges were €41 million below forecast due to share price movement during the quarter. As a reminder, we do not incorporate share price movements into our forecast since they are beyond our control. Free Cash Flow reached €806 million in Q3, bringing LTM Free Cash Flow to €2.9 billion. Overall, we are very pleased with our performance heading into year-end and view the business as well positioned to deliver growth and improving margins in 2025 as we reinvest to support our long-term potential.
* Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Sustained double-digit Y/Y growth in MAU and Premium Subscribers Launched 30 product updates this fall, including lossless audio, playlist mixing tools, messaging, an enhanced mobile free tier, taste profile controls and more Launched Spotify in ChatGPT in October, extending our ubiquity strategy into the high growth agentic AI landscape; the integration enhances discovery and allows Spotify users to receive personalized music and podcast recommendations within ChatGPT Signed new DSP partnerships with Amazon and Yahoo, giving more advertisers programmatic access to Spotify’s audio and video inventory at scale Key Highlights Solid revenue growth with continued profitability improvement Total Revenue grew 7% Y/Y to €4.3 billion; Total Revenue grew 12% Y/Y on a constant currency* basis Gross Margin finished 50 basis points ahead of guidance at 31.6% Operating Income finished at €582 million, reflecting Y/Y and Q/Q expansion to a 13.6% margin Free Cash Flow* finished at a Q3 record high of €806 million Accelerating execution and laying the foundation for Spotify’s next chapter of growth MAUs surpassed 700 million during Q3, growing 11% Y/Y to 713 million and reflecting Y/Y and Q/Q growth across all regions Premium Subscribers grew 12% Y/Y to 281 million, reflecting Y/Y and Q/Q growth across all regions
Results Q3 2025 Actuals Guidance Total Revenue (€B) Above €4.3 €4.2 Gross Margin Above 31.6% 31.1% Operating Income (€M)* Above €582 €485 Key Highlights: Actuals vs. Guidance Users Results Q3 2025 Actuals Guidance Monthly Active Users (M) Above 713 710 Premium Subscribers (M) In-Line 281 281 Financials * Includes (€16) million of Social Charges which were €41 million below forecast / guidance driven by share price movement during the quarter. As a reminder, we do not incorporate share price movements into our forecast since they are beyond our control.
FINANCIAL SUMMARY
USER, FINANCIAL & LIQUIDITY SUMMARY Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Y/Y Y/Y FXN* USERS (M) Total Monthly Active Users ("MAUs") 640 675 678 696 713 11% -- Premium Subscribers 252 263 268 276 281 12% -- Ad-Supported MAUs 402 425 423 433 446 11% -- FINANCIALS (€M) Premium 3,516 3,705 3,771 3,740 3,826 9% 13% Ad-Supported 472 537 419 453 446 -6% 0% Total Revenue 3,988 4,242 4,190 4,193 4,272 7% 12% Gross Profit 1,240 1,368 1,326 1,320 1,351 9% 13% Gross Margin 31.1% 32.2% 31.6% 31.5% 31.6% -- -- Total Operating Expenses 786 891 817 914 769 -2% 1% Operating Income 454 477 509 406 582 28% 33% Operating Margin 11.4% 11.2% 12.1% 9.7% 13.6% -- -- FREE CASH FLOW & LIQUIDITY (€M, unless otherwise denoted) Net Cash Flows From Operating Activities 715 883 539 709 829 16% -- Free Cash Flow* 711 877 534 700 806 13% -- Cash & Cash Equivalents, Restricted Cash & Short Term Investments (€B) 6.1 7.5 8.0 8.4 9.1 -- -- Financial Summary * Free Cash Flow and Constant Currency adjusted measures (FXN) are non-IFRS measures. See “Use of Non-IFRS Measures” and “Reconciliation of IFRS to Non-IFRS Results” for additional information.
Revenue Profitability Free Cash Flow & Liquidity Gross Margin was 31.6% in Q3, up 53 bps Y/Y reflecting: Premium decline driven by video podcast costs, partially offset by Revenue growth outpacing music costs net of marketplace programs and audiobook costs; and Ad-Supported gains driven by improved contribution from podcasts and music Operating Income was €582 million in Q3 and reflected the above, along with: Higher costs associated with marketing, personnel and related costs (excluding Social Charges) Operating Expenses included (€16) million in Social Charges At the end of Q3, our workforce consisted of 7,323 full-time employees globally Revenue of €4,272 million grew 7% Y/Y in Q3 (or 12% Y/Y constant currency*), reflecting: Premium Revenue growth of 9% Y/Y (or 13% Y/Y constant currency*), driven by subscriber gains; and Ad-Supported Revenue decline of -6% Y/Y (or flat Y/Y constant currency*) Unfavorable currency movements slowed Total Revenue Y/Y growth by ~450 bps vs. the ~490 bps incorporated into our guidance Free Cash Flow* was €806 million in Q3. Our liquidity and balance sheet remained strong, with €9.1 billion in cash and cash equivalents, restricted cash and short term investments. Financial Summary * Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information.
Advertising business transformation continues Ad-Supported Revenue declined -6% Y/Y (or flat Y/Y constant currency*). On a constant currency basis, growth in music and podcast advertising driven by growth in impressions sold was offset by softness in pricing and optimization of our podcasting inventory in our Owned & Licensed portfolio. Our automated sales channels remained the largest contributors to overall advertising growth. Revenue * Constant Currency adjusted measures are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. ** ARPU means Premium Average Revenue per User. *** Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. ****Auction-Based Revenue includes biddable sales within the Spotify Ad Exchange and Spotify Ads Manager. Premium growth driven by Subscriber gains Premium Revenue grew 9% Y/Y to €3,826 million (or 13% Y/Y constant currency*), reflecting subscriber growth of 12% Y/Y and a Premium ARPU** decline of -4% Y/Y to €4.53 (or flat Y/Y constant currency). Excluding the impact of FX, ARPU performance was driven by price increase benefits, offset by product/market mix.
Premium Gross Margin was 33.2% in Q3, down 34 bps Y/Y. The Y/Y trend was driven by video podcast costs (inclusive of costs previously attributable to the Ad-Supported segment), partially offset by Revenue growth outpacing music costs net of marketplace programs and audiobook costs. Gross Margin Driven by continued improvement in Ad-Supported segment Gross Margin finished at 31.6% in Q3, up 53 bps Y/Y. The Y/Y trend was driven by improvement in our Ad-Supported segment. Ad-Supported Gross Margin was 18.4% in Q3, up 525 bps Y/Y. The Y/Y trend was driven by improved contribution from podcasts and music.
Operating Expenses declined 2% Y/Y in Q3. Absent the effects of Y/Y movements in currency and Social Charges, the ~11% Y/Y increase in Operating Expenses was driven primarily by an increase in marketing and personnel and related costs. The Y/Y increase in marketing was partially driven by campaign timing, while the increase in personnel and related costs was partially driven by a shift in the timing of annual equity grants. As a reminder, Social Charges are payroll taxes associated with employee salaries and benefits in select countries where we operate. Since a portion of these taxes is tied to the intrinsic value of share-based compensation awards, movements in our stock price can lead to fluctuations in the taxes we accrue. Share price movements this quarter resulted in Social Charges coming in €41 million below forecast at (€16) million in current period Operating Expenses. Prior year period Operating Expenses included €53 million in Social Charges. Operating Expenses Y/Y trend led by marketing and personnel costs * Constant Currency adjusted measures are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. ** Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
Free Cash Flow Record Q3 performance aids balance sheet strength Free Cash Flow* was €806 million in Q3, a record high Q3 as a result of higher Net Income adjusted for non-cash items, partially offset by movements in net working capital. Capital expenditures rose €19 million Y/Y to €23 million. While the magnitude of Free Cash Flow can fluctuate from quarter to quarter based on seasonality and timing, we have averaged €1.3 billion of Free Cash Flow on a trailing 12 month basis for the past three years. In Q3, trailing 12 month Free Cash Flow expanded to €2.9 billion, supporting our strong balance sheet and €9.1 billion in cash and cash equivalents, restricted cash and short term investments balance. We repurchased $77 million in shares in Q3. Year-to-date through November 3rd, we repurchased $410 million in shares. * Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Cume represents cumulative performance since the beginning of 2016. ** Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
MAUS & SUBSCRIBERS
Total MAUs grew 11% Y/Y to 713 million, up from 696 million last quarter and 3M above our guidance. Quarterly performance reflected: Y/Y and Q/Q growth across all regions, with outperformance led by Rest of World, Europe and North America Global launch of mobile free tier enhancements Successful marketing campaigns in select developing markets Monthly Active Users (MAUs)
Our Premium Subscribers grew 12% Y/Y to 281 million, up from 276 million last quarter and in-line with guidance. Quarterly performance reflected: Y/Y and Q/Q growth across all regions, with outperformance led by Latin America and North America Strong global promotional campaign intake Premium Subscribers
PRODUCT & PLATFORM
Delivering on the Year of Accelerated Execution Launched lossless audio to Premium users in more than 50 markets, allowing Subscribers to enjoy higher-quality audio up to 24-bit/44.1 kHz FLAC, unlocking greater detail across nearly every song available on Spotify. Leveled up playlists with mixing tools. Premium listeners can now take their playlists further with the ability to add and customize transitions between tracks. Now in beta, the feature gives fans even more control and allows users to more easily create unique playlists. Introduced Messages to Free and Premium users aged 16+ in select markets on mobile, allowing fans to keep track of recommendations and share their favorite music, podcasts and audiobooks with friends and family.
Setting up for the next chapter of growth Introduced Spotify in ChatGPT, allowing users to receive personalized music and podcast recommendations. With integrations across more than 2,000 devices already, we’re making it even easier for listeners to discover their next favorite track, playlist or podcast. Announced new DSP partnerships with Amazon and Yahoo, granting programmatic access to Spotify’s inventory at scale. Since launching the Spotify Ad Exchange in April 2025, advertiser participation has grown by 142%, helping brands reach fans wherever they listen. Rolled out updates to Spotify’s Free experience globally. These enhancements make it easier to listen, connect and share music for free. Listeners now have more control to search and play any track, or to jump right into a song shared by a friend.
Reaching new engagement milestones Taylor Swift’s The Life of a Showgirl breaks records, becoming Spotify’s most-streamed album in a single day this year and the most pre-saved ever. To celebrate, Spotify hosted a three-day fan experience in NYC with photo ops, Easter eggs and exclusive giveaways. Jam hit 100 million monthly listening hours. Our personalized, real-time group listening experience lets people tune in together and build a shared queue. Cars are now the #1 Jam device, followed by speakers, phones and TVs - clear proof that shared listening is happening everywhere. Celebrated two years of audiobooks in Premium. Spotify has introduced millions of new listeners to audiobooks in just two years and our English language catalog has more than tripled since launch, from 150K to over 500,000 titles.
OUTLOOK
Outlook for Q4’25 The following forward-looking statements reflect Spotify’s expectations for Q4 2025 as of November 4, 2025 and are subject to substantial uncertainty. Total MAUs 745 million Implies the addition of approximately 32 million net new MAUs in the quarter Total Premium Subscribers 289 million Implies the addition of approximately 8 million net new subscribers in the quarter Total Revenue €4.5 billion Assumes ~620 bps headwind to growth Y/Y due to foreign exchange rate movements; based on currency rates as of Q3 close (e.g. USD:Euro of 0.8523 as of September 30th, 2025) Gross Margin 32.9% Primarily driven by Y/Y favorability in Ad-Supported segment Operating Income €620 million Incorporates €17 million in Social Charges based on a Q3 close share price of $698
Webcast Information We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. Daniel Ek, our Founder and Chief Executive Officer, Alex Norström, our Co-President and Chief Business Officer, Gustav Söderström, our Co-President and Chief Product & Technology Officer, and Christian Luiga, our Chief Financial Officer will be on hand to answer questions. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ325. Participants also may join using the listen-only conference line by registering through the following site: https://registrations.events/direct/Q4I57050716 We use investors.spotify.com and newsroom.spotify.com websites as well as other social media listed in the “Resources – Social Media” tab of our Investors website to disclose material company information. Use of Non-IFRS Measures To supplement our financial information presented in accordance with IFRS, we use the following non-IFRS financial measures: Revenue excluding foreign exchange effect, Premium revenue excluding foreign exchange effect, Ad-Supported revenue excluding foreign exchange effect, gross profit excluding foreign exchange effect, Operating Income excluding foreign exchange effect, Operating expense excluding foreign exchange effect, and Free Cash Flow. Management believes that Revenue excluding foreign exchange effect, Premium revenue excluding foreign exchange effect, Ad-Supported revenue excluding foreign exchange effect, gross profit excluding foreign exchange effect, and Operating expense excluding foreign exchange effect, are useful to investors because they present measures that facilitate comparison to our historical performance. However, these should be considered in addition to, not as a substitute for or superior to, Revenue, Premium revenue, Ad-Supported revenue, Gross Profit, Operating Income, Operating expense, or other financial measures prepared in accordance with IFRS. Management believes that Free Cash Flow is useful to investors because it presents a measure that approximates the amount of cash generated that is available to repay debt obligations, to make investments, and for certain other activities that exclude certain infrequently occurring and/or non-cash items. However, Free Cash Flow should be considered in addition to, not as a substitute for or superior to, net cash flows (used in)/from operating activities or other financial measures prepared in accordance with IFRS. For more information on these non-IFRS financial measures, please see “Reconciliation of IFRS to Non-IFRS Results” section below. Forward Looking Statements This shareholder update contains estimates and forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible,” and similar words are intended to identify estimates and forward-looking statements. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to numerous risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely affect our results as indicated in forward-looking statements. These factors include, but are not limited to: our ability to attract prospective users, retain existing users, and monetize our products and services; competition for users, their time, and advertisers; risks associated with our international operations and our ability to manage our growth and the scope and complexity of our business; risks associated with our new products or services and our emphasis on long-term user engagement over short-term results; our ability to predict, recommend, and play content that our users enjoy; our ability to generate profit or positive cash flow on a sustained basis; our ability to convince advertisers of the benefits of our advertising offerings; our ability to forecast or optimize advertising inventory amid evolving industry trends in digital advertising; our ability to generate revenues from podcasts, audiobooks, and other non-music content; potential disputes or liabilities associated with content made available on our premium service and ad-supported service (collectively, the “Service”); risks relating to acquisitions, investments, and divestitures; our dependence upon third-party licenses for most of the content we stream; our lack of control over third-party content providers who are concentrated and can unilaterally affect our access to content; our ability to comply with complex license agreements; our ability to accurately estimate royalty payments under our license agreements and relevant statutes; the limitations on our operating flexibility due to financial commitments required under certain of our license agreements; our ability to identify the compositions embodied in sound recordings and ownership thereof in order to obtain licenses or comply with existing license agreements; assertions by third parties of infringement or other violations by us of their intellectual property rights; our ability to protect our intellectual property; the dependence of streaming on operating systems, online platforms, hardware, networks, regulations, and standards that we do not control; our ability to maintain the integrity of our technology infrastructure and systems or the security of confidential information; undetected errors, misconfigurations, bugs, or vulnerabilities in our products and services; interruptions, delays, or discontinuations in service arising from our systems or systems of third parties; changes in laws or regulations affecting us; risks relating to privacy and data security, content moderation, and use of artificial intelligence; our ability to maintain, protect, and enhance our brand; risks associated with increased scrutiny of environmental, social, and governance matters; payment acceptance-related risks; our dependence on key personnel and ability to attract, retain, and motivate highly skilled employees; our ability to access additional capital to support strategic objectives; risks relating to currency exchange rate fluctuations and foreign exchange controls; the impact of economic, social, or political conditions, including inflation, changes in interest rates, changes in trade policies, geopolitical conflicts in Europe and the Middle East, and related market uncertainty; our ability to accurately estimate user metrics and other estimates; our ability to manage and remediate attempts to manipulate streams and attempts to gain or provide unauthorized access to certain features of our Service; risks related to our indebtedness, including risks related to our Exchangeable Notes; fluctuation of our operating results and fair market value of ordinary shares; tax-related risks; the concentration of voting power among our founders, which limits shareholders’ ability to influence our governance and business; and risks related to our status as a foreign private issuer and a Luxembourg company. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from our estimates and forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission (“SEC”), including our Annual Report on Form 20-F filed with the SEC on February 5, 2025, as updated by subsequent reports filed with the SEC. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this shareholder update. Rounding Certain monetary amounts, percentages, and other figures included in this update have been subject to rounding adjustments. The sum of individual metrics may not always equal total amounts indicated due to rounding.
FINANCIAL STATEMENTS
Trending Charts MAUs, Ad-Supported Users, Premium Subscribers & Revenue By Segment * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
Trending Charts Gross Profit by Segment, Gross Margin by Segment & Free Cash Flow* * Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
Interim condensed consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Three months ended September 30, 2025 June 30, 2025 September 30, 2024 Revenue 4,272 4,193 3,988 Cost of revenue 2,921 2,873 2,748 Gross profit 1,351 1,320 1,240 Research and development 309 415 342 Sales and marketing 349 364 332 General and administrative 111 135 112 769 914 786 Operating income 582 406 454 Finance income 262 89 66 Finance costs (17) (447) (122) Finance income/(cost) - net 245 (358) (56) Income before tax 827 48 398 Income tax (benefit)/expense (72) 134 98 Net income/(loss) attributable to owners of the parent 899 (86) 300 Earnings/(loss) per share attributable to owners of the parent Basic 4.36 (0.42) 1.49 Diluted 3.28 (0.42) 1.45 Basic 205,964,504 205,426,999 201,575,568 Weighted-average ordinary shares outstanding Diluted 213,789,735 205,426,999 207,399,501
September 30, 2025 December 31, 2024 Assets Non-current assets Lease right-of-use assets 242 226 Property and equipment 174 188 Goodwill 1,078 1,201 Intangible assets 33 48 Long term investments 2,888 1,635 Restricted cash and other non-current assets 61 68 Finance lease receivables 69 74 Deferred tax assets 87 186 4,632 3,626 Current assets Trade and other receivables 735 771 Income tax receivable 117 28 Short term investments 3,606 2,667 Cash and cash equivalents 5,456 4,781 Other current assets 143 132 10,057 8,379 Total assets 14,689 12,005 Equity and liabilities Equity Share capital — — Other paid in capital 6,459 6,124 Treasury shares (328) (262) Other reserves 3,654 2,707 Accumulated deficit (2,006) (3,044) Equity attributable to owners of the parent 7,779 5,525 Non-current liabilities Exchangeable Notes — 1,539 Lease liabilities 444 462 Accrued expenses and other liabilities 1 5 Provisions 3 3 Deferred tax liabilities 223 21 671 2,030 Current liabilities Trade and other payables 1,193 1,342 Income tax payable 31 33 Deferred revenue 692 683 Accrued expenses and other liabilities 2,519 2,347 Exchangeable Notes 1,741 — Provisions 50 25 Derivative liabilities 13 20 6,239 4,450 Total liabilities 6,910 6,480 Total equity and liabilities 14,689 12,005 Interim condensed consolidated statement of financial position (Unaudited) (in € millions)
Increase in trade receivables and other assets (26) (19) (4) Increase in trade and other liabilities 100 201 86 Increase in deferred revenue 25 12 33 Increase in provisions 2 8 — Interest paid (11) (6) (9) Interest received 57 57 77 Income tax paid (5) (58) (15) Net cash flows from operating activities 829 709 715 Investing activities Payment of deferred consideration pertaining to business combinations — (2) — Purchases of property and equipment (23) (10) (4) Purchases of short term investments (4,783) (4,643) (1,439) Sales and maturities of short term investments 4,369 4,228 1,364 Dividends received 1 22 — Change in restricted cash — 1 — Other (2) — (3) Net cash flows used in investing activities (438) (404) (82) Financing activities Proceeds from exercise of stock options 39 92 152 Repurchases of ordinary shares (58) — — Payments of lease liabilities (15) (22) (18) Payments for employee taxes withheld from restricted stock unit releases (66) (59) (35) Net cash flows (used in)/from financing activities (100) 11 99 Net increase in cash and cash equivalents 291 316 732 Cash and cash equivalents at beginning of the period 5,161 5,019 4,054 Net foreign exchange gains/(losses) on cash and cash equivalents 4 (174) (98) Cash and cash equivalents at period end 5,456 5,161 4,688 September 30, 2024 Operating activities Net income/(loss) 899 (86) 300 Adjustments to reconcile net income/(loss) to net cash flows Depreciation of property and equipment 19 20 21 Amortization of intangible assets 5 6 9 Impairment charges on real estate assets 5 1 — Share-based compensation expense 75 73 63 Finance income (262) (89) (66) Finance costs 17 447 122 Income tax (benefit)/expense (72) 134 98 Other 1 8 — Changes in working capital: (Unaudited) (in € millions) Three months ended September 30, 2025 June 30, 2025 Interim condensed consolidated statement of cash flows
Diluted earnings/(loss) per share Net income/(loss) attributable to owners of the parent 899 (86) 300 Fair value gains on dilutive Exchangeable Notes (197) — — Net income/(loss) used in the computation of diluted earnings per share 702 (86) 300 Shares used in computation: Weighted-average ordinary shares outstanding 205,964,504 205,426,999 201,575,568 Exchangeable Notes 2,911,498 — — Stock options 3,614,107 — 3,989,363 Restricted stock units 1,292,184 — 1,814,968 Other contingently issuable shares 7,442 — 19,602 Diluted weighted-average ordinary shares 213,789,735 205,426,999 207,399,501 Diluted earnings/(loss) per share attributable to owners of the parent 3.28 (0.42) 1.45 September 30, 2025 June 30, 2025 September 30, 2024 Basic earnings/(loss) per share Net income/(loss) attributable to owners of the parent 899 (86) 300 Shares used in computation: Weighted-average ordinary shares outstanding 205,964,504 205,426,999 201,575,568 Basic earnings/(loss) per share attributable to owners of the parent 4.36 (0.42) 1.49 (Unaudited) (in € millions, except share and per share data) Three months ended Calculation of basic and diluted earnings/(loss) per share
Three months ended September 30, 2025 September 30, 2024 IFRS revenue 4,272 3,988 Foreign exchange effect on 2025 revenue using 2024 rates 178 Revenue excluding foreign exchange effect 4,450 IFRS revenue year-over-year change % 7% Revenue excluding foreign exchange effect year-over-year change % 12% IFRS Premium revenue 3,826 3,516 Foreign exchange effect on 2025 Premium revenue using 2024 rates 152 Premium revenue excluding foreign exchange effect 3,978 IFRS Premium revenue year-over-year change % 9% Premium revenue excluding foreign exchange effect year-over-year change % 13% IFRS Ad-Supported revenue 446 472 Foreign exchange effect on 2025 Ad-Supported revenue using 2024 rates 26 Ad-Supported revenue excluding foreign exchange effect 472 IFRS Ad-Supported revenue year-over-year change % (6%) Ad-Supported revenue excluding foreign exchange effect year-over-year change % —% Revenue on a constant currency basis (Unaudited) (in € millions, except percentages) Reconciliation of IFRS to non-IFRS results Gross profit on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended September 30, 2025 September 30, 2024 IFRS revenue 4,272 3,988 IFRS cost of revenue 2,921 2,748 IFRS gross profit 1,351 1,240 Foreign exchange effect on 2025 gross profit using 2024 rates 50 Gross profit excluding foreign exchange effect 1,401 IFRS gross profit year-over-year change % 9% Gross profit excluding foreign exchange effect year-over-year change % 13%
Operating expenses on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended September 30, 2025 September 30, 2024 IFRS Research and development expenses 309 342 Foreign exchange effect on 2025 expenses using 2024 rates 8 Research and development expenses excluding foreign exchange effect 317 IFRS Research and development expenses year over year change % (10)% Research and development expenses excluding foreign exchange effect year-over-year change % (7)% Reconciliation of IFRS to non-IFRS results Three months ended September 30, 2025 September 30, 2024 IFRS Sales and marketing expenses 349 332 Foreign exchange effect on 2025 expenses using 2024 rates 14 Sales and marketing expenses excluding foreign exchange effect 363 IFRS Sales and marketing expenses year over year change % 5 % Sales and marketing expenses excluding foreign exchange effect year-over-year change % 9 % Three months ended September 30, 2025 September 30, 2024 IFRS General and administrative expenses 111 112 Foreign exchange effect on 2025 expenses using 2024 rates 5 General and administrative expenses excluding foreign exchange effect 116 IFRS General and administrative expenses year over year change % (1)% General and administrative expenses excluding foreign exchange effect year-over-year change % 4 % Three months ended September 30, 2025 September 30, 2024 IFRS Operating expenses 769 786 Foreign exchange effect on 2025 operating expenses using 2024 rates 27 Operating expenses excluding foreign exchange effect 796 IFRS Operating expenses year over year change % (2)% Operating expenses excluding foreign exchange effect year-over-year change % 1 %
Reconciliation of IFRS to non-IFRS results Operating income on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended September 30, 2025 September 30, 2024 IFRS operating income 582 454 Foreign exchange effect on 2025 operating income using 2024 rates 23 Operating income excluding foreign exchange effect 605 IFRS operating income year-over-year change % 28% Operating income excluding foreign exchange effect year-over-year change % 33%
Three months ended March 31, June 30, September December March 31, June 30, September December March 31, June 30, 2022 2022 30, 2022 31, 2022 2023 2023 30, 2023 31, 2023 2024 2024 September December March 31, June 30, September 30, 2024 31, 2024 2025 2025 30, 2025 Net cash flows from/(used in) operating activities 37 39 40 (70) 59 13 211 397 211 492 715 883 539 709 829 Capital expenditures (10) (5) (5) (5) (2) (2) (1) (1) (5) (2) (4) (6) (6) (10) (23) Change in restricted cash (5) 3 — 2 — (2) 6 — 1 — — — 1 1 — Free Cash Flow 22 37 35 (73) 57 9 216 396 207 490 711 877 534 700 806 Last twelve months ended December March 31, June 30, September December March 31, June 30, September December March 31, June 30, September 31, 2022 2023 2023 30, 2023 31, 2023 2024 2024 30, 2024 31, 2024 2025 2025 30, 2025 Net cash flows from operating activities 46 68 42 213 680 832 1,311 1,815 2,301 2,629 2,846 2,960 Capital expenditures (25) (17) (14) (10) (6) (9) (9) (12) (17) (18) (26) (45) Change in restricted cash — 5 — 6 4 5 7 1 1 1 2 2 Free Cash Flow 21 56 28 209 678 828 1,309 1,804 2,285 2,612 2,822 2,917 Free Cash Flow (Unaudited) (in € millions) Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) Free Cash Flow (Unaudited) (in € millions) Twelve months ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net cash flows from operating activities 101 179 344 573 259 361 46 680 2,301 Capital expenditures (27) (36) (125) (135) (78) (85) (25) (6) (17) Change in restricted cash (1) (34) (10) 2 2 1 — 4 1 Free Cash Flow 73 109 209 440 183 277 21 678 2,285
APPENDIX
Social Charges Sensitivity Meaningful movements in our stock price can lead to Social Charge variance Our guidance incorporates the impact of Social Charges, the vast majority of which appear in Operating Expenses. The amount of Social Charges we accrue for and ultimately pay can be volatile, as they are tied to the value of our share price. Since we do not forecast stock price changes in our guidance, meaningful movements in our stock price over the course of a quarter can lead to meaningful changes in Social Charges. As an example, at the Q3 close, our stock price was $698. In Q3, a 10% increase or decrease in our stock price compared to the quarter-end price would have an approximate +/- €37M impact on Social Charges.
