Spotify (NYSE: SPOT) bought back $1.1 billion in shares year to date

Posted by Caroline Horne on Oct 22nd, 2026

What happened

Spotify Technology S.A. (NYSE: SPOT) said Q3 2026 revenue rose to $4.97 billion, up 16% from a year earlier. Monthly active users reached 788 million and Premium Subscribers reached 306 million. Gross margin was 33.0% and gross profit was $1.64 billion.

Operating income was $672 million and free cash flow was $735 million. Revenue was in line with guidance, gross margin was above guidance and Premium Subscribers were 1 million ahead. Spotify also said it repurchased $1.1 billion in shares through October 21st. The company said those buybacks fully neutralized dilution from employee equity programs in 2026 and added returns of excess cash.

Key numbers

Metric	Latest	Change	Source
Revenue	$4.97 billion	from $4.27 billion, +16%	Q3 2026 Update
Monthly active users	788 million	from 713 million, +11%	Q3 2026 Update
Premium subscribers	306 million	from 281 million, +9%	Q3 2026 Update
Operating income	$672 million	from $582 million, +15%	Q3 2026 Update
Free cash flow	$735 million	from $806 million, -9%	Q3 2026 Update
Shares repurchased year to date	$1.1 billion		Q3 2026 Update

Why it matters

Revenue increased by $697 million from Q3 2025. Operating income rose from $582 million and free cash flow was $735 million. Trailing 12-month free cash flow reached $3.2 billion, and cash, restricted cash and short-term investments finished at $9.9 billion. Spotify said it has bought back about 3 million shares since repurchases resumed in August 2025, or about 1.5% of shares outstanding.

OptimistFi's case is that Spotify must prove personalization, freemium distribution and operating discipline can overcome nonexclusive content and powerful rights holders. This quarter strengthens that view because users and revenue grew, and the company kept buying back stock. The caveat is that management said lower-than-forecast marketing and personnel costs helped operating income, and social charges were $22 million, $13 million above forecast because of share-price movement.

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What's next

Spotify said it will host a live Q&A starting at 8:00 a.m. ET today, with Alex Norström, Gustav Söderström and Christian Luiga available for questions. The next quarterly test is Q4 2026, when guidance calls for 818 million MAUs, 316 million Premium Subscribers, $5.2 billion in revenue, 33.8% gross margin and $820 million in operating income.

Revenue guidance assumes about a 230 basis point foreign-exchange tailwind. Q4 operating income guidance also includes $6 million in social charges based on a Q3 close share price of $487.38. A result at or above that range would support the case for durable operating discipline. A miss would weaken it.