Aureus
AExcellent

Spotify Technology S.A.(SPOT)

A

Financial data as of Dec 31, 2025Stable · Communication Services

FCF Margin16.7%Free Cash Flow / Revenue
Cash Conversion132.6%Operating CF / Net Income
Free Cash Flow$2.9B
Revenue$17.2B
Net Cash$3.3BCash exceeds debt
Debt / FCF0.7xManageable debt load
Current Ratio1.72Adequate short-term liquidity
YoY FCF Growth-4.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (16.7%, 0.7x)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.7x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (16.7%)
  • Excellent cash conversion (133%)
  • Net cash position ($3.3B)
  • Very low debt relative to cash flow (0.7x)
  • Highly consistent quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin16.7%
Net Margin12.9%
Operating CF Margin17.1%
CapEx Ratio0.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$3.3BCash exceeds debt
Debt / FCF0.7xManageable debt load
Current Ratio1.72Strong liquidity
Debt / Equity0.23Low leverage

Quarterly FCF Trend

-4.9% YoYStable (-4.9%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameSpotify Technology S.A.
SectorCommunication Services
Free Cash Flow$2.9B
Revenue$17.2B
Net Income$2.2B
Operating Cash Flow$2.9B
Capital Expenditure$61.0M
FCF Margin16.7%
Cash Conversion Rate132.6%
Net Margin12.9%
Total Debt$2.0B
Total Cash$5.3B
Net Cash$3.3B
Current Ratio1.72
Debt / Equity0.23
Debt / FCF0.7x
YoY FCF Growth-4.9%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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