Spotify Technology
The firm posted quarterly earnings of $3.83 per share, surpassing the analyst consensus estimate of a $1.87 profit.
For the fourth quarter of 2025, Spotify expects revenue of $5.26 billion (4.5 billion euros). The company expects total Premium subscribers to reach 289 million.
Rosenblatt analyst Barton Crockett reiterated the Neutral rating on the stock, lowering the price forecast from $700 to $670
Crockett said Spotify's third quarter beat guidance on ad-based users and gross margins.
He noted fourth-quarter guidance came in softer than his model, mainly on advertising revenue.
Quarterly ad trends slipped to flat constant currency from 4.6% growth in the second quarter.
The analyst now expects ad sales to accelerate in the second half of 2026.
Spotify claims 245 million in-car listeners, equal to 34% of MAUs and 15% of hours. It also says it leads SiriusXM in car listening time.
Edison's Share of Ear for the second quarter of 2025 shows SiriusXM at 13% in-car, Spotify at 6%, contradicting that claim.
Programmatic ads are rising, and he pointed to new disclosure showing auction ads account for about 13% of ad sales.
He said direct sales lagged, with ads still run by interim co-heads after Spotify ousted its ad chief.
Crockett argued programmatic strength supports a re-acceleration in the second half of 2026.
The analyst lowered the fiscal year 2025 revenue estimate from $19.47 billion to $19.43 billion.
Price Action: SPOT shares were trading higher by 0.86% to $635 at last check Wednesday.
