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Spotify SPOT

Spotify scores good on business quality (7.0 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$529.14Oct 9, 2026
Business qualityGood
Next earningsOct 22, 2026, before the open
Insiders, 90 daysSelling

Why it matters

  1. What Spotify does

    Spotify makes money by selling premium audio subscriptions and ad-supported music and podcast streaming to global users, paid directly by consumers and advertisers.

  2. What it does best

    Spotify dominates music streaming scale with $18.1 billion in revenue, converting massive user engagement into pricing power that rivals struggle to match.

  3. The main risk

    Music label concentration gives major suppliers enormous leverage to squeeze margins during contract renewals, threatening earnings stability.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 14.6% and FCF margin sits at 65th percentile, expanding as higher-margin advertising and audio formats scale up.

MoatFair

Ecosystem lock-in traps consumers through personalized playlists and saved libraries, ranking in the top quartile for ROE at 41%.

GrowthSteady

Revenue grew 9.7% to $18.1B, showing a decelerating path compared to prior double-digit historical leaps shown in annual summaries.

Financial healthStrong

Net cash sits at $7.5 billion with interest coverage at 88x, making debt costs negligible. Free cash flow reached $3.3B, growing steadily stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $2.0M outside pre-planned sales.

Our sealed record on SPOT

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is SPOT a good business?

Spotify scores good on the Cluenex quality check (7.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health strong.

Are insiders buying SPOT?

In the last 90 days of SEC Form 4 filings: 1 sold $2.0M outside pre-planned sales.

When does SPOT report earnings?

Oct 22, 2026, before the open.

For members

See SPOT today

  • Today's verdict on SPOT, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Spotify (SPOT)”, https://cluenex.com/stocks/spot/, data as of Oct 10, 2026.