Spotify forecasts profit below estimate as higher payroll taxes outweigh streaming demand
Investors are closely monitoring the Swedish company's profitability after price hikes and cost-cutting efforts in recent years helped it achieve its first annual profit for 2024.
Spotify has also been expanding its library of video content to attract subscribers, a bet that has helped shares more than double in value in the past 12 months. But the higher stock price has led to a jump in payroll taxes linked to employee compensation, hampering profit.
Netflix holds talks with Spotify to expand live TV content, report says
Such taxes, called social charges, totalled €116-million (US$133.62-million) in the second quarter. That caused Spotify to post a 42-cent-per-share loss, compared with a €1.33 profit a year ago.
The company signalled the trend would continue in the third quarter, forecasting an operating income of €485-million euros. That is below analysts' estimate of €562-million, according to data compiled by LSEG.
Spotify's revenue forecast of €4.2-billion was also below the estimate of €4.48-billion, while the monthly active users (MAU) projection of 710 million came in line with the estimate. Its prediction for a 5 million increase in premium subscribers to 281 million was above a Visible Alpha estimate of 279 million.
The company began investing in video podcasts in 2020 after buying podcast networks Gimlet Media and Anchor FM. Last year, it signed a new multiyear deal with podcaster Joe Rogan.
'We have now added more than 400,000 video podcasts ... more people are consuming video on the platform,' CEO Daniel Ek told Reuters.
Spotify's premium subscribers rose 12 per cent to 276 million in the second quarter, beating a Visible Alpha estimate of 273 million. MAU additions of 18 million brought the total to 696 million.
Revenue rose 10 per cent to €4.19-billion, but missed the estimate of €4.26-billion due to an unfavourable currency impact of about 440 basis points.
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Article content Payable: September 12, 2025 Record date: August 29, 2025 Designated an 'eligible dividend' under the Income Tax Act (Canada) Article content The Company's unaudited condensed consolidated interim financial statements and accompanying notes as at and for the three and six months ended June 30, 2025 and related MD&A are available under the Company's profile on SEDAR+ at and on the Investor Relations section of the Company's website at Article content Conference Call Article content Management will host a conference call to discuss the Company's second quarter 2025 results at 5:00 p.m. ET today, August 7, 2025. To access: Article content About Jamieson Wellness Article content Jamieson Wellness is dedicated to Inspiring Better Lives Every Day with its portfolio of innovative natural health brands. Established in 1922, the Jamieson brand is Canada's #1 vitamins, minerals and supplements ('VMS') brand. The Company's youtheory brand, acquired in 2022, is an established and growing lifestyle brand in the U.S. Combined, these global brands are available in more than 50 countries worldwide. The Company also offers a variety of innovative VMS products as well as sports nutrition products to consumers in Canada with its Progressive, Smart Solutions, Iron Vegan and Precision brands. The Company is a participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information please visit Article content Jamieson Wellness' head office is located at 1 Adelaide Street East Suite 2200, Toronto, Ontario, Canada. Article content Forward-Looking Information Article content This press release may contain forward-looking information within the meaning of applicable securities legislation. Such information includes, but is not limited to, statements related to the Company's anticipated results and its outlook for its 2024 revenue, Adjusted EBITDA and Adjusted diluted earnings per share. Words such as 'expect', 'anticipate', 'intend', 'may', 'will', 'estimate' and variations of such words and similar expressions are intended to identify such forward-looking information. This information reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under 'Risk Factors' in the Company's Annual Information Form dated March 31, 2025 and under the 'Risk Factors' section in the MD&A filed today, August 7, 2025. This information is based on the Company's reasonable assumptions and beliefs in light of the information currently available to it and the statements are made as of the date of this press release. The Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law or regulatory authority. Article content The Company cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect the Company's results. Readers are urged to consider the risks, uncertainties and assumptions associated with these statements carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. See 'Forward-looking Information' and 'Risk Factors' within the MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements. Article content Jamieson Wellness Inc. Selected Consolidated Financial Information In thousands of Canadian dollars, except share and per share amounts Three months ended Six months ended June 30 June 30 2025 2024 2025 2024 Revenue 199,109 184,806 345,072 312,844 Cost of sales 118,295 119,778 209,038 205,031 Gross profit 80,814 65,028 136,034 107,813 Gross profit margin 40.6 % 35.2 % 39.4 % 34.5 % Selling, general and administrative expenses 55,346 43,867 104,933 83,425 Share-based compensation 2,078 1,744 4,165 3,493 Earnings from operations 23,390 19,417 26,936 20,895 Operating margin 11.7 % 10.5 % 7.8 % 6.7 % Foreign exchange gain (1,749 ) (180 ) (1,245 ) (951 ) Interest expense and other financing costs 4,771 4,647 9,679 9,520 Accretion on preferred shares 1,155 2,121 3,427 4,340 Earnings before income taxes 19,213 12,829 15,075 7,986 Provision for income taxes 5,385 4,516 3,761 3,392 Net earnings 13,828 8,313 11,314 4,594 Net earnings attributable to: Shareholders 13,071 8,653 10,625 4,540 Non-controlling interests 757 (340 ) 689 54 13,828 8,313 11,314 4,594 Adjusted net earnings 17,267 14,654 23,215 18,569 EBITDA 30,118 24,358 37,915 31,507 Adjusted EBITDA 35,100 31,555 54,166 47,652 Adjusted EBITDA margin 17.6 % 17.1 % 15.7 % 15.2 % Weighted average number of shares Basic 41,712,207 41,456,594 41,845,278 41,468,227 Diluted 43,065,916 42,472,623 43,104,101 42,304,411 Earnings per share attributable to common shareholders: Basic, earnings per share 0.31 0.20 0.25 0.11 Diluted, earnings per share 0.30 0.20 0.25 0.11 Adjusted diluted, earnings per share 0.40 0.35 0.54 0.44 Article content Jamieson Wellness Inc. Consolidated Statements of Financial Position In thousands of Canadian dollars June 30, 2025 December 31, 2024 Assets Current assets Cash 50,537 44,787 Accounts receivable 165,085 228,031 Inventories 191,939 154,658 Derivatives 1,238 2,661 Prepaid expenses and other current assets 6,167 6,803 Income taxes recoverable 5,272 – 420,238 436,940 Non-current assets Property, plant and equipment 101,302 103,591 Goodwill 279,433 287,503 Intangible assets 364,747 377,214 Deferred income tax 4,265 3,545 Total assets 1,169,985 1,208,793 Liabilities Current liabilities Accounts payable and accrued liabilities 139,102 137,653 Income taxes payable 1,345 4,373 Derivatives 4,767 2,982 Current portion of other long-term liabilities 17,790 27,673 163,004 172,681 Long-term liabilities Long-term debt 417,652 308,285 Post-retirement benefits 1,268 1,209 Deferred income tax 63,594 64,467 Redeemable preferred shares – 98,138 Other long-term liabilities 13,409 15,633 Total liabilities 658,927 660,413 Equity Share capital 328,879 326,219 Warrants 14,705 14,705 Contributed surplus 25,014 23,835 Retained earnings 82,436 99,109 Accumulated other comprehensive income 17,336 41,313 Total shareholders' equity 468,370 505,181 Non-controlling interests 42,688 43,199 Total equity 511,058 548,380 Total liabilities and equity 1,169,985 1,208,793 Article content Non-IFRS and Other Financial Measures Article content This press release makes reference to certain financial measures, including non-IFRS financial measures that are historical, non-IFRS measures that are forward-looking, non-GAAP ratios and supplementary financial measures. Management uses these financial measures for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of ongoing operations and in analyzing the Company's business performance and trends. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company uses the following non-IFRS financial measures: 'EBITDA', 'Adjusted EBITDA' and 'Adjusted net earnings', the most directly comparable financial measure for each that is disclosed in its financial statements being net earnings, 'normalized gross profit', 'normalized SG&A', 'normalized earnings from operations', 'cash from operating activities before working capital considerations' and 'net debt', the most directly comparable financial measures for each that is disclosed in its financial statements being gross profit, SG&A, earnings from operations, cash flows from operating activities, and long-term debt, respectively, the following non-IFRS ratios: 'Adjusted EBITDA margin', 'Adjusted diluted earnings per share', 'normalized gross profit margin', 'normalized operating margin', and the following supplementary financial measures: 'gross profit margin' and 'operating margin' to provide supplemental measures of the Company's operating performance and thus highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also uses non-IFRS and supplementary financial measures in order to prepare annual operating budgets and to determine components of management compensation. For an explanation of the composition of each such measure and the usefulness and additional uses of each by management, see the 'How we Assess the Performance of our Business' section of the MD&A, which is incorporated by reference. See below for a quantitative reconciliation of each non-IFRS financial measure to its most directly comparable financial measure disclosed in the Company's financial statements to which the measure relates. Article content The following tables provide a quantitative reconciliation of net earnings to EBITDA, Adjusted EBITDA, and Adjusted net earnings, as well as gross profit to normalized gross profit, SG&A to normalized SG&A, earnings from operations to normalized earnings from operations and net debt, each of which are non-IFRS financial measures (see the 'Non-IFRS and Other Financial Measures' of this press release for further information on each non-IFRS financial measure) for the three and six months ended June 30, 2025. Article content Jamieson Wellness Inc. Three months ended June 30 2025 2024 $ Change % Change Revenue 177,317 155,787 21,530 13.8 % Gross profit 78,251 61,284 16,967 27.7 % Labour relations costs (1) – 1,414 (1,414 ) (100.0 %) Acquisition and divestiture related costs (2) – 165 (165 ) (100.0 %) Normalized gross profit 78,251 62,863 15,388 24.5 % Gross profit margin 44.1 % 39.3 % – 4.8 % Normalized gross profit margin 44.1 % 40.4 % – 3.7 % Share-based compensation (3) 2,078 1,744 334 19.2 % Selling, general and administrative expenses 53,767 42,262 11,505 27.2 % Acquisition and divestiture related costs (2) – (324 ) 324 100.0 % IT system implementation (4) (3,796 ) (3,449 ) (347 ) (10.1 %) Legal and other (6) (857 ) – (857 ) (100.0 %) Labour relations costs (1) – (281 ) 281 100.0 % Normalized selling, general and administrative expenses 49,114 38,208 10,906 28.5 % Earnings from operations 22,406 17,278 5,128 29.7 % Acquisition and divestiture related costs (2) – 489 (489 ) (100.0 %) IT system implementation (4) 3,796 3,449 347 10.1 % Labour relations costs (1) – 1,695 (1,695 ) (100.0 %) Legal and other (6) 857 – 857 100.0 % Normalized earnings from operations 27,059 22,911 4,148 18.1 % Operating margin 12.6 % 11.1 % – 1.5 % Normalized operating margin 15.3 % 14.7 % – 0.6 % Adjusted EBITDA 33,455 28,691 4,764 16.6 % Adjusted EBITDA margin 18.9 % 18.4 % – 0.5 % Strategic Partners Three months ended June 30 2025 2024 $ Change % Change Revenue 21,792 29,019 (7,227 ) (24.9 %) Gross profit 2,563 3,744 (1,181 ) (31.5 %) Gross profit margin 11.8 % 12.9 % – (1.1 %) Selling, general and administrative expenses 1,579 1,605 (26 ) (1.6 %) Earnings from operations 984 2,139 (1,155 ) (54.0 %) Operating margin 4.5 % 7.4 % – (2.9 %) Adjusted EBITDA 1,645 2,864 (1,219 ) (42.6 %) Adjusted EBITDA margin 7.5 % 9.9 % – (2.4 %) Jamieson Brands Six months ended June 30 2025 2024 $ Change % Change Revenue 308,698 271,135 37,563 13.9 % Gross profit 132,041 102,414 29,627 28.9 % Labour relations costs (1) – 4,667 (4,667 ) (100.0 %) IT system implementation (4) 1,023 – 1,023 100.0 % Acquisition and divestiture related costs (2) – 165 (165 ) (100.0 %) Normalized gross profit 133,064 107,246 25,818 24.1 % Gross profit margin 42.8 % 37.8 % – 5.0 % Normalized gross profit margin 43.1 % 39.6 % – 3.5 % Share-based compensation (3) 4,165 3,493 672 19.2 % Selling, general and administrative expenses 101,807 80,323 21,484 26.7 % Acquisition and divestiture related costs (2) – (324 ) 324 100.0 % IT system implementation (4) (8,082 ) (6,429 ) (1,653 ) (25.7 %) Labour relations costs (1) – (1,721 ) 1,721 100.0 % Donations (5) (3,118 ) – (3,118 ) (100.0 %) Legal and other (6) (882 ) (297 ) (585 ) (197.0 %) Normalized selling, general and administrative expenses 89,725 71,552 18,173 25.4 % Earnings from operations 26,069 18,598 7,471 40.2 % Acquisition and divestiture related costs (2) – 489 (489 ) (100.0 %) IT system implementation (4) 9,105 6,429 2,676 41.6 % Labour relations costs (1) – 6,388 (6,388 ) (100.0 %) Donations (5) 3,118 – 3,118 100.0 % Legal and other (6) 882 297 585 197.0 % Normalized earnings from operations 39,174 32,201 6,973 21.7 % Operating margin 8.4 % 6.9 % – 1.5 % Normalized operating margin 12.7 % 11.9 % – 0.8 % Adjusted EBITDA 51,728 43,815 7,913 18.1 % Adjusted EBITDA margin 16.8 % 16.2 % – 0.6 % Strategic Partners Six months ended June 30 2025 2024 $ Change % Change Revenue 36,374 41,709 (5,335 ) (12.8 %) Gross profit 3,993 5,399 (1,406 ) (26.0 %) IT system implementation (4) 226 – 226 100.0 % Normalized gross profit 4,219 5,399 (1,180 ) (21.9 %) Gross profit margin 11.0 % 12.9 % – (1.9 %) Normalized gross profit margin 11.6 % 12.9 % – (1.3 %) Selling, general and administrative expenses 3,126 3,102 24 0.8 % Earnings from operations 867 2,297 (1,430 ) (62.3 %) IT system implementation (4) 226 – 226 100.0 % Normalized earnings from operations 1,093 2,297 (1,204 ) (52.4 %) Operating margin 2.4 % 5.5 % – (3.1 %) Normalized operating margin 3.0 % 5.5 % – (2.5 %) Adjusted EBITDA 2,438 3,837 (1,399 ) (36.5 %) Adjusted EBITDA margin 6.7 % 9.2 % – (2.5 %) Article content Reconciliation of Non-IFRS Financial Measures In thousands of Canadian dollars Three months ended Six months ended June 30 June 30 2025 2024 2025 2024 Net earnings: 13,828 8,313 11,314 4,594 Add: Recovery of income taxes 5,385 4,516 3,761 3,392 Interest expense and other financing costs 4,771 4,647 9,679 9,520 Accretion on preferred shares 1,155 2,121 3,427 4,340 Depreciation of property, plant, and equipment 3,474 3,236 6,729 6,752 Amortization of intangible assets 1,505 1,525 3,005 2,909 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 30,118 24,358 37,915 31,507 Share-based compensation (3) 2,078 1,744 4,165 3,493 Foreign exchange gain (1,749 ) (180 ) (1,245 ) (951 ) Labour relations costs (1) – 1,695 – 6,388 IT system implementation (4) 3,796 3,449 9,331 6,429 Acquisition and divestiture related costs (2) – 489 – – Donations (5) – – 3,118 – Legal and other (6) 857 – 882 297 Adjusted EBITDA 35,100 31,555 54,166 47,652 Recovery of income taxes (5,385 ) (4,516 ) (3,761 ) (3,392 ) Interest expense and other financing costs (4,771 ) (4,647 ) (9,679 ) (9,520 ) Depreciation of property, plant, and equipment (3,474 ) (3,236 ) (6,729 ) (6,752 ) Amortization of intangible assets (1,505 ) (1,525 ) (3,005 ) (2,909 ) Share-based compensation (3) (1,956 ) (1,622 ) (3,921 ) (3,249 ) Tax deduction from vesting of certain share-based awards (19 ) – (708 ) – Tax effect of normalization adjustments (723 ) (1,355 ) (3,148 ) (3,261 ) Adjusted net earnings 17,267 14,654 23,215 18,569 Three months ended Six months ended June 30 June 30 2025 2024 2025 2024 Gross profit 80,814 65,028 136,034 107,813 Labour relations costs (1) – 1,414 – 4,667 Acquisition and divestiture related costs (2) – 165 – 165 IT system implementation (4) – – 1,249 165 Normalized gross profit 80,814 66,607 137,283 112,645 Normalized gross profit margin 40.6 % 36.0 % 39.8 % 36.0 % Selling, general and administrative expenses 55,346 43,867 104,933 83,425 Acquisition and divestiture related costs (2) – (324 ) – (324 ) IT system implementation (4) (3,796 ) (3,449 ) (8,082 ) (6,429 ) Labour relations costs (1) – (281 ) – (1,721 ) Donations (5) – – (3,118 ) – Legal and other (6) (857 ) – (882 ) (297 ) Normalized selling, general and administrative expenses 50,693 39,813 92,851 74,654 Earnings from operations 23,390 19,417 26,936 20,895 Acquisition and divestiture related costs (2) – 489 – 489 IT system implementation (4) 3,796 3,449 9,331 6,429 Donations (5) – – 3,118 – Labour relations costs (1) – 1,695 – 6,388 Legal and other (6) 857 – 882 297 Normalized earnings from operations 28,043 25,050 40,267 34,498 Normalized operating margin 14.1 % 13.6 % 11.7 % 11.0 % Article content (1) These expenses are mainly comprised of third-party legal, security fees, unavoidable facility expenditures, customer fines and penalties, along with freight charges to expedite shipments to customers as it relates to a labour disruption in Q1 2024. (2) Prior year expenses mainly pertain to legal, consulting and integration costs associated with the acquisition and integration of our former distributor partner in China on April 28, 2023. (3) The Company's share-based compensation expense pertains to our long-term incentive plan (the 'LTIP') (refer to ' Share-based compensation'), with stock options, performance-based share units ('PSUs'), time-based restricted share units ('RSUs'), and deferred share units ('DSUs') expenses, along with associated payroll taxes. (4) Mainly pertains to development costs associated with our IT system implementation to augment our system infrastructure. Unlike other system improvement projects with costs capitalized, due to its cloud-based nature, these system implementation costs are expensed accordingly. (5) Include cash and in-kind donations to support communities adjacent to our Irvine, California facility impacted by the wildfires. Article content Article content Article content Article content Article content Contacts Article content Investor and Media Contact Information: Article content Jamieson Wellness Article content Article content Ruth Winker Article content Article content Article content
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- Vancouver Sun
Some Canadian permanent residents will have to post a US$15K visa bond to enter U.S. Here's what to know
The U.S. State Department has announced that a new visa bond program will take effect starting Aug. 20. Certain visitors, including some Canadian permanent residents, may have to post a bond of up to US$15,000 in order to visit the U.S. The new policy is part of U.S. President Donald Trump's efforts to crack down on illegal immigrants in the country, and it comes after the government introduced a US$250 visa integrity fee in June. Here's what to know about the visa bond policy and who will be impacted by it. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. A visa bond means visitors are required to pay a certain amount of money when they apply for a visa, and that money is refunded once they return to their home country, are naturalized as a citizen in the U.S. or die. This visa bond only applies to people who need a business visa (B-1) or tourism visa (B-2) . Anyone required to pay a visa bond will need to enter the U.S. through one of these three airports: Boston Logan International Airport, John F. Kennedy International Airport or Washington Dulles International Airport. This new program will run for a year in the U.S., starting Aug. 20. Even after this pilot year is over, the rules will still apply to those that already paid the bond, until they return to their home country, are naturalized as a citizen in the U.S. or die. A bond payment also does not guarantee that a visa will be issued, and if the applicant pays for it without being directed by the consular office, that money will not be returned, according to the U.S. Bureau of Consular Affairs, a division of the Department of State. Visa bonds will start at US$5,000 and could go up to US$15,000, at the discretion of the consular officers. The amount will vary depending on how much the officers believe is sufficient to make sure the visitor will maintain their status and will not remain in the U.S. for longer than they are allowed. The U.S. published the first visa bond country list on Aug. 5, and so far it only includes two countries: Malawi and Zambia, both in Africa. Countries can be added to or removed from the list with 15 days notice. The bond will not be applied towards countries in the Visa Waiver Program, that includes 42 countries across Europe, Asia, Oceania, and in the Middle East. Canadians will not be impacted by this new visa bond policy, since visas are not required for Canadians to enter the U.S. However, permanent residents in Canada, who are not originally from countries in the Visa Waiver Program, need visas to visit the U.S. So, if a Canadian permanent resident has a passport from one of the countries on the visa bond list, they would have to pay the bond in order to visit the U.S. The policy says that anyone who holds a passport from one of the countries from the list will need to post a bond of the amount specified during their visa interview. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
