Netflix delivered strong financial results in Q4 2025, exceeding revenue and operating income forecasts, and met its full-year objectives for 2025. The company is focused on improving its core business, expanding into new initiatives like live content and video podcasts, and integrating the pending acquisition of Warner Bros., while forecasting continued healthy growth for 2026.
Q4 revenue grew 18% year over year to $12.1B, exceeding guidance.
positiveFull year 2025 revenue grew 16% to $45.2B, meeting financial objectives.
positiveQ4 operating income rose 30% year over year to $3.0B, with operating margin expanding to 25%.
positiveFull year 2025 operating margin expanded to 29.5%, up from 26.7% in 2024.
positiveAdvertising revenue grew more than 2.5x in 2025 to over $1.5B, with expectations to roughly double in 2026.
positivePaid memberships crossed 325 million during the quarter.
positiveFull year 2025 free cash flow was $9.5B, exceeding the forecast.
positiveQ4 net income included ~$60M of costs related to the Warner Bros. bridge loan.
attentionEngagement growth in H2 2025 was partially offset by a year-over-year decline in viewing of non-branded, second-run licensed content.
attentionThe company will pause share buybacks to accumulate cash for the Warner Bros. acquisition.
attentionContent amortization is expected to grow ~10% in 2026, with higher growth in the first half.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
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| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Focus on improving core business with increasing variety and quality of series and films, enhancing product experience, and growing ads business.
Building out newer initiatives like live events, video podcasts, and scaling cloud-first games strategy.
Working to close the acquisition of Warner Bros.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.