Spotify Technology S.A. (SPOT) Q2'26 Earnings Review Deliberate Investments Aimed at Future Initiatives Scaling

Equity Research 4 August 2026 | 8:44PM EDT

Spotify Technology S.A. (SPOT) Q2’26 Earnings Review: Deliberate Investments Aimed at Future Initiatives Scaling

SPOT 12m Price Target: $655.00 Price: $478.17 Upside: 37.0% BUY Eric Sheridan In Spotify’s Q2’26 earnings results, management emphasized a few | Goldman Sachs & Co. LLC key themes: 1) healthy user growth/engagement with a solid pace of Stephen Laszczyk revenue monetization, gross margin and operating margin | Goldman Sachs & Co. LLC performance; 2) targeted investments in 2H 2026 aimed at positioning the company for its longer-term initiatives around AI Danni Kennedy | Goldman Sachs & Co. LLC products and long-term user engagement/monetization – all under the thematic framing of capitalizing on the company’s scale (relative to competitors), driving additional aspects of user personalization, Key Data _____________________________________ Market cap: $99.8bn and driving product diversification, which should result in sustained Enterprise value: $91.5bn 3m ADTV: $995.6mn higher compounded revenue growth over the medium/long term (as Luxembourg all framed at their recent Investor Day); 3) an advertising platform Americas Internet M&A Rank: 3 and global MAU framework that is still in transition with a focus GS Forecast __________________________________ remaining on standing up the advertising monetization opportunity 12/25 12/26E 12/27E 12/28E

set into 2027, and adjusting product optimization and ad loads in Revenue (€ mn) New Revenue (€ mn) Old 17,186.0 17,186.0 19,528.3 19,569.4 22,634.8 22,642.0 25,781.8 25,819.6 emerging markets to broaden the monetizable scale of MAUs, EBITDA (€ mn) 2,297.9 2,922.7 3,839.9 4,820.4 EBIT (€ mn) 2,195.9 2,810.7 3,730.5 4,718.8 resulting in higher user conversion and revenue growth in these EPS (€) New markets; 4) reiterated guidance across all the key operating metrics EPS (€) Old P/E (X) from the recent Investor Day – albeit with an acknowledgment that Dividend yield (%) -- -- -- -- rates of investment in 2H 2026 will moderate in 2027+ allowing the Net debt/EBITDA (X) (1.7) (2.5) (2.9) (3.4)

company to remain committed to their 20%+ operating income 6/26 9/26E 12/26E 3/27E margin guide. EPS (€)

GS Factor Profile ______________________________ Over the short-term, we suspect that investor debates will remain Growth

squarely focused on the dueling themes of rising product initiatives Financial Returns and monetization (launches and scaling) relative to how much Multiple investments in 2H 2026 are transient vs permanent as messaging evolves into 2027. Over the long-term, we see Spotify as well Integrated

positioned against several long-term industry themes: 1) steady Percentile 20th 40th 60th 80th 100th Premium subscription price increases (at a regular cadence of 1-2 years and staggered by geography) as a demonstration of value SPOT relative to Americas Coverage SPOT relative to Americas Internet delivered across a large growing user base; 2) the introduction of new product tiers which could differentiate from competitors on Source: Company data, Goldman Sachs Research estimates. See disclosures for details. offerings and pricing; 3) healthy MAU growth (particularly in emerging markets) and steady conversion of ad-supported users

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Spotify Technology S.A. (SPOT)

Spotify Technology S.A. (SPOT) Balance Sheet (€ mn) _______________________________________ BUY Rating since Jan 22, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 5,258.0 7,212.7 11,292.0 16,445.6 Accounts receivable ,191.8 1,315.0 Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets 4,436.0…