Spotify 1Q'26: Recalibrating Expectations

I didn’t realize until yesterday that Spotify is actually currently approaching its second worst drawdown since becoming a public company as the stock has experienced a drawdown of ~44% so far from its peak in June, 2025! At the same time, now that I have been following this company for nearly five years, I don’t remember a time the company was better positioned. The reality is the stock just went a bit ahead of its results last year and investors are likely just re-calibrating their expectations.

I’ll go through the quarterly numbers, some key takeaways from the earnings call, and my current commentary on valuation behind the paywall.

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