Spotify Technology
SPOT Communication Services Internet Content & Information
Spotify Technology’s revenue for fiscal 2025 (year ended December 2025) was $19.4 billion, up 14.6% from fiscal 2024. In the quarter to June 2026, revenue grew 16.7%, EPS grew 741.7% and free cash flow grew 9.80%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for three.
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Spotify Technology (SPOT) Altman Z-score
Spotify Technology's Altman Z-score for fiscal 2025 is 11.36, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 11.36 | 1.97 |
| FY2024 | 9.40 | 5.04 |
| FY2023 | 4.36 | 1.99 |
| FY2022 | 2.37 | (3.08) |
| FY2021 | 5.45 | (3.62) |
| FY2020 | 9.07 | 3.88 |
| FY2019 | 5.18 | 0.23 |
| FY2018 | 4.96 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.29 | — | 0.35 | |
| Retained earnings / total assets | (0.06) | — | −0.08 | |
| EBIT / total assets | 0.15 | — | 0.48 | |
| Market value of equity / total liabilities | 15.77 | — | 9.46 | |
| Sales / total assets | 1.14 | — | 1.14 | |
| Altman Z-score | Safe zone | 11.36 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.04 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| RDDT Reddit Inc. compare | 84.8× |
| PINS Pinterest, Inc. compare | 15.7× |
| ZG Zillow Group, Inc. compare | 12.6× |
| Z Zillow Group, Inc. compare | 12.6× |
| SPOT Spotify Technology | 11.4× |
| META Meta Platforms, Inc. compare | 8.7× |
| BIDU Baidu, Inc. compare | 2.1× |
| MTCH Match Group Inc. compare | 0.7× |
| SNAP Snap Inc. compare | 0.0× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets