Spotify stock split: when could SPOT shares merit a stock split?

Shares of Spotify Technology S.A. have rebounded significantly from their 2022–2023 lows, prompting renewed discussion about a possible stock split. In this article, we examine the company’s performance, the split question, and what it could mean for investors – factually and objectively, without providing investment advice.

What is Spotify?

Launched in October 2008, Spotify (SPOT) is a Stockholm-headquartered audio streaming and media services provider. The firm operates in more than 180 countries and trades on the New York Stock Exchange. It became publicly listed in April 2018, opening near $149 (adjusted) at IPO. Over time, the business has expanded its monthly active user (MAU) base and premium subscriber count.

Historical context

In 2022, the company faced several headwinds: a weaker macroeconomic backdrop, concerns over growth prospects and monetisation, and controversy linked to content moderation. These factors weighed on its share price at the time.

Since the 2022 low, Spotify’s share price has recovered sharply. As of late 2025, shares trade above roughly $650, up around 40–43% this year alone. By contrast, major indices and several technology peers have underperformed over the same period. For example, SPOT’s 2025 return has outpaced the S&P 500’s approximate 16% gain to date.

Past performance is not a reliable indicator of future results.

Recent financials & metrics

• In Q1 2025, Spotify reported approximately 678 million MAUs (+10% year on year) and 268 million paid subscribers (+12% year on year). Quarterly revenue rose about 15% to €4.2 billion, with operating income reaching €509 million.

• In Q2, the company added roughly 8 million net subscribers, reaching 276 million paying users, and by Q3 reported 713 million MAUs and 281 million paid subscribers, with revenue of about €4.3 billion (~$4.93 billion), up 7% year on year.

What is a stock split?

A stock split occurs when a company increases the number of its shares – for example, via a 2-for-1 split – thereby reducing the share price without changing the company’s overall market value. The purpose is often to make shares appear more accessible and potentially enhance liquidity.

Despite its recent rally, Spotify has never carried out a stock split since its 2018 IPO. The company has a single share class and has not announced any plans to change this.

Split considerations for Spotify

No split announced: As of November 2025, Spotify has made no formal statement about a stock split. Any future decision remains speculative.

Rationale for discussion: The high nominal share price, combined with Spotify’s expanding profitability and global footprint, has made the idea of a split more relevant than in earlier years.

Beyond optics: While a split may increase accessibility and trading liquidity, it would not alter Spotify’s underlying fundamentals. Subscriber growth, margins and strategic execution remain the key performance drivers.

What could influence a Spotify stock split?

Market environment

Equity and technology markets have broadly stabilised in 2025, creating a supportive backdrop for Spotify’s performance. However, valuations across the sector remain sensitive to macroeconomic trends and shifts in consumer behaviour.

Growth strategy

Spotify continues to expand its ecosystem through podcasts, audiobooks and advertising-supported tiers, while investing in AI-driven recommendations to enhance user engagement and monetisation. These initiatives aim to diversify revenue streams beyond music streaming alone.

Risks

Despite steady growth, the advertising business remains a more cyclical and slower-growing segment. A potential stock split would represent a structural adjustment rather than an operational initiative, and would not influence long-term profitability. Broader risks include ongoing inflationary pressures, softer consumer demand, and intensified competition across the streaming landscape.

Key takeaways

• Spotify has staged a strong recovery, rising by around 40% in 2025, supported by subscriber growth and higher profitability.
• The company has never undertaken a stock split, though the topic is now under active discussion as the share price continues to climb.
• Any future split would aim to enhance accessibility and liquidity, not change Spotify’s business fundamentals.

As always, individual investors should conduct their own research and consider their personal risk tolerance and investment horizon. This content does not constitute investment advice.

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