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Additional Reading from MarketBeat.com Spotify Posts Huge EPS Beat: Shares Are Still Down Big From HighsWritten by Leo Miller. Published 11/5/2025. 
Key Points - Spotify is getting ready to introduce not one, but two new CEOs to replace the firm's pioneering founder.
- See why Spotify's massive EPS beat didn't lead shares to move higher.
- SPOT remains down nearly 20% from highs, and its ad-supported customer base provides a significant growth opportunity.
Spotify Technology (NYSE: SPOT) has long dominated music streaming, cementing its status as a top growth stock in digital entertainment. After plunging 66% in 2022, shares have climbed nearly 700% through the Nov. 4 close. This AI tech is up 4900% and investors are piling in. The tech is used across Retail, Healthcare, SaaS, and Entertainment with more industries on the horizon.
Nasdaq ticker ($RADI) secured.
Shares are $0.81 in the current Regulation A+ round. Lock-in $0.81 Shares Now – Price Moves Next Week While still 19% below its June all-time high, recent developments—including a CEO transition and an earnings beat—could reshape the company’s trajectory. The firm recently announced that its long-term Chief Executive Officer (CEO), Daniel Ek, is stepping down. Below, we’ll examine that leadership change and Spotify’s latest earnings results, and what they mean for investors going forward. Spotify’s Leadership Shakeup: From Visionary Founder to Collaborative Approach On Jan. 1, 2026, Gustav Söderström and Alex Norström will become co-CEOs of Spotify, replacing Daniel Ek, who founded Spotify and has led the company since 2006. Filling Ek’s shoes will be difficult. He helped revolutionize the music industry by building Spotify years before competitors like Apple (NASDAQ: AAPL) launched Apple Music in 2015; by then Spotify already had more than 70 million users. That early lead illustrates Ek’s role as a pioneering figure in streaming. Ek’s departure isn’t performance-related, and he will remain on the board as executive chairman, which should help minimize disruption. Both Söderström and Norström have been with Spotify for over 15 years, giving them deep institutional knowledge. It’s unclear how the CEO change will affect Spotify in the long run. Investors reacted cautiously, with shares sliding about 4.2% on the day the news was released. The transition is worth watching, but it need not be a cause for alarm. Spotify Posts Huge EPS Beat, But Profitability Caveats and Guidance Weigh on Shares Spotify reported solid Q3 2025 results. Revenue was €4.53 billion (approx. $5.02 billion), up 7% and modestly above estimates of €4.23 billion (approx. $4.86 billion). More striking was the profit beat. Diluted earnings per share (EPS) came in at €3.34 (≈$3.83), well above consensus of €1.96 (≈$2.25). That outperformance reflected expansion in gross and operating margins: gross margin rose 53 basis points to 31.6% (about 50 basis points ahead of company guidance), while operating margin improved 220 basis points to 13.6%. There are important caveats, however. Management said the gross margin outperformance was mainly due to changes in estimates related to "rights holder liabilities"—a one-time accounting adjustment rather than an ongoing operational improvement. Roughly 40% of the operating margin gain stemmed from lower-than-expected "social charges," taxes that fluctuate with the company’s stock price; because shares declined during the quarter, those charges were lower and boosted margins. In short, the profitability beat was impressive on paper but partly driven by non-recurring factors. Those items helped inflate the EPS beat and tempered investor enthusiasm. Although Spotify added 3 million users, Q4 guidance of €4.5 billion (≈$5.17 billion) was lighter than expected, and shares fell about 3.4% after the release. SPOT’s Ad-Supported Opportunity Remains Compelling Spotify’s ad-supported tier remains under-monetized. About 63% of its user base is on the ad-supported plan, yet that cohort generated only roughly 10% of revenue in Q3. Better monetization of ad-supported users would be a material growth lever for the company. To that end, management is revamping its ad-supported monetization strategy and expects this segment to achieve healthier growth in the second half of 2026. With shares pulled back from recent highs and meaningful opportunities ahead, Spotify’s outlook remains constructive for long-term investors.
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