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Sep 30, 2025
Netflix Q3 2025 Earnings Report
Netflix reported strong growth in revenue and net income in Q3 2025.
Key Takeaways
Netflix saw a 17% YoY revenue increase in Q3 2025, hitting record viewership share in major markets and achieving its best ad sales quarter to date, despite an operating margin impact from a Brazilian tax dispute.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Netflix expects continued growth in Q4 2025 driven by membership gains, ad revenue, and a strong content slate, while projecting a slightly lower operating margin due to one-time expenses.
Positive Outlook
- Q4 revenue projected to grow 17% YoY
- Operating margin expected to improve 2 pts YoY to 23.9%
- Strong upcoming slate including Stranger Things finale and major live sports
- Doubling of upfront ad commitments in the US
- Global licensing deals for KPop Demon Hunters expanding monetization
Challenges Ahead
- Q3 operating margin fell short due to unexpected $619M tax expense
- EPS came in $1.00 below internal forecast
- Ongoing impact from FX movements on financials
- Lower-than-forecast operating income for the quarter
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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