Spotify’s stock surged 10% as the music streaming platform exceeded expectations in the fourth quarter. Earnings per share were 4.43 euros, beating the 2.74 euros forecasted. Revenue reached 4.53 billion euros, slightly higher than the 4.52 billion euros expected. Monthly active users grew 11% to 751 million, with paid subscribers increasing 10% to 290 million.

The company credited its strong user growth to Latin America, Europe, and other regions, as well as enhancements to its mobile free tier. Spotify’s 476 million ad-supported users surpassed estimates, coming in above the 468.9 million forecasted. The platform introduced audiobooks in new markets, music videos for premium users, and more AI tools in the fourth quarter.

Spotify raised prices for Premium users in the U.S., Estonia, and Latvia this month. The “Spotify Wrapped” feature for 2025 was the most successful ever, with over 300 million users engaging and 630 million shares on social media. Net income rose to 1.17 billion euros, or 4.43 euros per share, from 367 million euros in the previous year.

Looking ahead, Spotify aims to grow monthly active users to 759 million and total premium subscribers to 293 million. Revenue for the current quarter is projected to be 4.5 billion euros, with a 670 basis point headwind from foreign exchange rates. This falls short of the 4.58 billion euros estimate.

Read more at CNBC: Spotify (SPOT) q4 2025 earnings