Netflix‘s shareholder letter summing up the final quarter of 2025 included one big surprise: the streamer says it crossed 325 million global paid subscribers in the quarter.
And here we didn’t even expect an update! Netflix had stopped sharing quarterly subscribers some time ago, though executives did say they’d update the public at pertinent intervals. This is our first one of those. Netflix instead now focuses on new KPIs revenue and income.
To that end, Netflix posted Q4 earnings of 56 cents per share on $12.157 billion in revenue, beating expectations. Revenue grew 17.6 percent year to year as Netflix’s ad tier continued its maturation process — across the entirety of 2025, advertising revenue crossed $1.5 billion, the company said.
Netflix’s fourth quarter net operating income was $2.957 billion; the margin was 24.5 percent. Net income was $2.419 billion.
Three months ago, Netflix forecast its fourth quarter profit would be $2.355 billion on $11.96 billion in revenue. Predicted operating income was $2.86 billion.
Stranger Things 5 was Netflix’s big Q4 show — the combination between the third and final part of the fifth and final season of the Duffers Brothers drama and Netflix’s Christmas Day NFL games created the biggest streaming day and month in U.S. history.
A lot has changed in a quarter. Netflix is presently in the process of purchasing Warner Bros. Discovery’s streaming (and linear HBO) and studios businesses.
Earlier on Tuesday, Netflix altered its $83 billion bid for Warner Bros. to an all-cash deal, matching the structure of Paramount’s alternative offer. (The one that keeps being politely declined.) It revealed its own (somewhat generous, definitely broad) valuation range for the “Discovery” portion of Warner Bros. Discovery — the part(s) it does not want — as defense of its $27.75 bid for WB vs. Paramount’s $30 cash bid for the whole enchilada.
At the time Netflix reported its third quarter earnings, it was five days deep into initial discussions to buy Warner Bros., per a proxy filed earlier on Tuesday — the public just did not know that yet (though the rumor mill was starting). On the Oct. 21, 2025 conference call, Netflix co-CEO Ted Sarandos said, “Nothing is a must-have for us to meet the goals that we have for the business.”
Then again, this was the same company that swore it would never do commercials or live sports.
Today, Netflix is guiding to Q1 2026 revenue of $12.157 billion and $3.264 billion in profit (diluted to 76 cents per share).
