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Dec 31, 2025
Netflix Q4 2025 Earnings Report
Netflix posted strong quarterly results with double-digit revenue growth and significant gains in net income.
Key Takeaways
Netflix delivered robust Q4 2025 performance, surpassing 325 million paid memberships and exceeding financial forecasts. Revenue grew 18% year over year, while net income rose to $2.42 billion.
Revenue grew 18% YoY to $12.05B, driven by pricing, ad growth, and member additions.
Net income reached $2.42B, up from $1.87B in Q4'24.
EPS increased to $0.56, exceeding guidance.
Free cash flow rose to $1.87B despite acquisition-related costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Netflix projects revenue between $50.7B and $51.7B for 2026, targeting an operating margin of 31.5%. Ad revenue is expected to double.
Positive Outlook
- 2026 revenue forecast: $50.7B–$51.7B (+12%–14% YoY)
- Ad revenue expected to roughly double in 2026
- Targeted 2026 operating margin of 31.5%
- Strong engagement from original content and global titles
- Launch of live events and expansion of gaming strategy
Challenges Ahead
- Higher content amortization expected in H1 2026
- Inclusion of $275M in acquisition-related expenses
- Bridge loan interest from Warner Bros. deal added ~$60M in Q4 expenses
- Guidance assumes no major FX fluctuations
- Some non-branded content viewing declined year-over-year
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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