Spotify vs Netflix: One Growth Stock Has an Edge

SPOT beat EPS estimates with genuine margin expansion while NFLX's headline $5B free cash flow masked a $2.8B one-time Warner Bros. termination payment.

Spotify doubles down on audio with podcasts and audiobooks while Netflix sprints into GenAI filmmaking, live sports, and kids gaming simultaneously.

SPOT's $824M free cash flow and expanding Premium margins signal a compounding audio model, despite a 42 P/E and €410M MLC lawsuit risk.

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Spotify (NYSE:SPOT) and Netflix (NASDAQ:NFLX) both reported Q1 2026 earnings that sent each stock lower, but for very different reasons.

Spotify beat on profit and kept stacking subscribers. Netflix posted a headline-friendly cash flow number that was mostly a one-time check from a deal it walked away from. Two subscription giants. Two very different stories about where the money is actually coming from.

Spotify pulled $4.53 billion in revenue, up 8.19% year over year, with EPS of $3.45 against a $2.950 consensus. Premium subscribers reached 293 million, MAUs hit 761 million, and Premium gross margin expand

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/spotify-vs-netflix-one-growth-162927553.html)