Finance
Spotify forecasts profit above estimates as founder Daniel Ek moves to new role
Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
Quick Summary
Spotify projects higher Q1 profits as Daniel Ek becomes executive chairman. Despite slower revenue growth, user numbers rise.
Spotify Projects Stronger Profits as Daniel Ek Transitions to Chairman Role
Spotify's Earnings Forecast and Leadership Transition
Feb 10 (Reuters) - Spotify forecast first-quarter earnings above Wall Street estimates on Tuesday, as the Swedish audio-streaming benefits from strong user growth and price hikes, sending its shares up around 12% in premarket trading.
Financial Performance Overview
The results are the first since co-CEOs Gustav Soderstrom and Alex Norstrom took the reins from founder Daniel Ek, who became executive chairman in January.
User Growth and Subscription Changes
While price increases in several markets and cost cuts powered profits in the December quarter, the company's revenue growth hit the slowest since its 2018 market listing.
Impact of Price Increases
Spotify has rolled out an AI-powered playlist that can be generated with a simple prompt, invested in video podcasts including through a Netflix deal and expanded beyond audiobooks with physical books to ward off competition from Apple and Amazon's streaming services.
The company forecast operating income of 660 million euros ($786.13 million) in the first quarter, compared with analysts' average estimate of 652.3 million euros, according to data compiled by LSEG.
Its quarterly revenue forecast of 4.5 billion euros was slightly below the estimate of 4.57 billion euros. Fourth-quarter revenue rose 7% to 4.53 billion euros, in line with estimates.
Spotify raised the price of its monthly premium subscription plan by $1 to $12.99 in the U.S., Estonia and Latvia markets this year, following a similar move in more than 150 markets in 2025.
Its quarterly outlook for 759 million monthly active users was above an estimate of 753 million, while its prediction for a 3 million increase in premium subscribers to 293 million was below estimates.
Premium subscribers grew 10% to 290 million in the fourth quarter, versus an estimate of 290.9 million. Its MAU net additions of 38 million brought the total to 751 million and exceeded expectations.
Gross profit jumped 10% from a year earlier, thanks to a 10% decline in operating expenses. Gross profit margin increased to 33.1% from 31.6% in the prior quarter.
($1 = 0.8396 euros)
(Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
Key Takeaways
- •Spotify forecasts higher profits for Q1 2023.
- •Daniel Ek transitions to executive chairman.
- •Price hikes and cost cuts boost profits.
- •Revenue growth slows since 2018 listing.
- •Premium subscribers and active users increase.
Frequently Asked Questions about Spotify forecasts profit above estimates as founder Daniel Ek moves to new role
1What is operating income?
Operating income is the profit a company makes from its regular business operations, excluding any income derived from non-operational activities such as investments or sales of assets.
2What are premium subscribers?
Premium subscribers are users who pay for a subscription service, such as Spotify, which typically offers additional features or ad-free experiences compared to free users.
3What is revenue growth?
Revenue growth refers to the increase in a company's sales over a specific period, often expressed as a percentage compared to previous periods.
4What is gross profit margin?
Gross profit margin is a financial metric that shows the percentage of revenue that exceeds the cost of goods sold (COGS). It indicates how efficiently a company uses its resources.
5What is a price increase?
A price increase occurs when a company raises the prices of its goods or services, which can impact revenue and customer demand.