It can, but not as much as competing streaming services like TIDAL, Deezer, or Amazon Music HD. This is because Spotify, even at its highest quality setting of 320kbps (MP3 quality), is still lossy. Compared to lossless streaming platforms, which are delivering bitrates at or well-exceeding 1411kbps (16-bit, or CD quality), music streamed through Spotify has more compression and “loses” data, dropping quality below the level of a physical CD. Since the DAC is receiving compressed data, the result isn’t going to be as impressive as from other lossless sources. Just because you listen to Spotify doesn’t mean getting a DAC is a bad idea. If you’re listening through your computer’s built-in audio jack, you’re likely hearing subtle background noise that can degrade sound quality even further. In my own experience, I found that listening to Spotify through a dedicated amp/DAC hybrid made music sound clearer and more detailed. If you’re not noticing background noise, however, you’ll likely find upgrading your headphones provides a bigger improvement to sound quality overall.