Is Spotify Technology S.A. (SPOT) Halal?

NYSE Communication Services Sweden $97.3B
✓ HALAL
Confidence: 95/100
Spotify Technology S.A. (SPOT) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.7% against the AAOIFI threshold of 30%, Spotify Technology S.A. comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Internet Content & Information), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.7%
/ 30%
8.1%
/ 30%
0.8%
/ 30%
1.43%
/ 5%
✓ HALAL
DJIM 1.7%
/ 33%
8.1%
/ 33%
0.8%
/ 33%
1.43%
/ 5%
✓ HALAL
MSCI 13.0%
/ 33%
63.1%
/ 33%
6.1%
/ 33%
1.43%
/ 5%
✗ NOT HALAL
S&P 1.7%
/ 33%
8.1%
/ 33%
0.8%
/ 33%
1.43%
/ 5%
✓ HALAL
FTSE 13.0%
/ 33%
63.1%
/ 33%
6.1%
/ 50%
1.43%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
38.9
Forward: 25.1
EPS
$12.14
P/B Ratio
10.1
EV/EBITDA
40.6
EV: $91.5B
Revenue
$17.2B
Growth: 6.8%
Beta
1.7
High volatility
Current Ratio
1.7

Profitability

Gross Margin 32.0%
Operating Margin 15.5%
Net Margin 12.9%
Return on Equity (ROE) 31.9%
Return on Assets (ROA) 10.2%

Cash Flow & Balance Sheet

Operating Cash Flow$2.9B
Free Cash Flow$2.9B
Total Debt$2.0B
Debt-to-Equity23.5
Current Ratio1.7
Total Assets$15.0B

Price & Trading

Last Close$478.18
50-Day MA$493.15
200-Day MA$619.62
Avg Volume2.9M
Beta1.7
52-Week Range
$405.00
$785.00

About Spotify Technology S.A. (SPOT)

CEO
Mr. Alex Norström
Employees
7,000
Sector
Communication Services
Industry
Internet Content & Information
Country
Sweden
Exchange
NYSE
Market Cap
$97.3B
Currency
USD

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers online and offline streaming access to its catalog of music and podcasts, including video, lossless music, and audiobooks in select markets through subscription offerings primarily sold directly to end users and partners. The Ad-Supported segment provides limited on-demand online access to its catalog of music and online and offline access to its catalog of podcasts on computers, tablets, mobile devices, and other smart devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is headquartered in Stockholm, Sweden.

Purification Calculator

As a halal stock with 1.43% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Spotify Technology S.A. (SPOT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Spotify Technology S.A. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Spotify Technology S.A.'s debt ratio?

Spotify Technology S.A.'s debt ratio is 1.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 13.0%.

Does Spotify Technology S.A. require dividend purification?

Yes, Spotify Technology S.A. has an impermissible income ratio of 1.43%, which means 1.43% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Spotify Technology S.A.'s key financial metrics?

Spotify Technology S.A. has a market capitalization of $97.3B, trailing P/E ratio of 38.9, and revenue of $17.2B. The company maintains a gross margin of 32.0% and a net margin of 12.9%. Return on equity stands at 31.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.