Companies /Communication Services

Netflix Inc

NASDAQ: NFLX Entertainment
$81.58
â–² $1.74 (+2.17%) today
Markets open · 2:56pm ET

Q3 2025 Earnings

Reported Oct 21, 2025, 4:02pm ET · SEC source
$5.87
Miss −15.79%
EPS · est. $6.97
$11.5B
Miss −0.01%
Revenue · est. $11.5B
−5.3%
Trailing market
NFLX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%Oct 21Oct 22report 4:02pm ETearnings−0.5%−3.6%
−4%0+4%Oct 21Oct 22earnings−0.5%−3.6%
NFLX −3.6%S&P 500 −0.5%
−4%0+4%Oct 21Oct 22report 4:02pm ETearnings−0.9%−3.6%
−4%0+4%Oct 21Oct 22earnings−0.9%−3.6%
NFLX −3.6%NASDAQ −0.9%
−8%−4%0+4%Oct 20Oct 29report 4:02pm ETearnings+2.1%−6.7%
−8%−4%0+4%Oct 20Oct 29earnings+2.1%−6.7%
NFLX −6.7%S&P 500 +2.1%
−8%−4%0+4%Oct 20Oct 29report 4:02pm ETearnings+3.6%−6.7%
−8%−4%0+4%Oct 20Oct 29earnings+3.6%−6.7%
NFLX −6.7%NASDAQ +3.6%
−10.07%
Day of report
−0.25%
Next session
−1.43%
One week
−6.56%
30 days

S&P 500 over the same 30 days: −1.31%.

Did NFLX Beat Earnings? Q3 2025 Results

Netflix delivered a mixed third quarter, with a punishing one-time tax charge overshadowing otherwise solid top-line momentum and <a href="https://247wallst.com/investing/2025/10/21/netflix-shares-down-5-after-q3-earnings-everything-you-need-to-know/">sending shares lower</a> after results hit. Revenue came in at $11.51 billion, up 17.2% year over year but essentially flat against the $11.51 billion consensus, while diluted EPS of $5.87 missed the $6.97 estimate by 15.79%, the shortfall driven almost entirely by an approximately $619 million charge related to a Brazilian tax dispute covering periods from 2022 through the quarter. That expense compressed operating margin to 28.2%, well below the company's own 31.5% guidance, though Netflix noted it would have exceeded the target absent the charge. Engagement offered a brighter picture, with record TV view share in the U.S. and UK and content hits including Happy Gilmore 2 and KPop Demon Hunters drawing massive audiences. Looking ahead, Netflix guided Q4 revenue to $11.96 billion and raised its full-year free cash flow outlook to approximately $9 billion, while trimming its 2025 operating margin forecast to 29% to account for the Brazilian matter.

Key Takeaways
  • 17% year-over-year revenue growth driven by membership growth, pricing adjustments, and increased ad revenue
  • Record TV view share in the US and UK markets
  • Best ad sales quarter ever with doubled US upfront commitments
  • Strong content slate including KPop Demon Hunters (most popular film ever at 325M views), Happy Gilmore 2 (126M views), and Wednesday S2 (114M views)
  • Canelo vs. Crawford boxing match attracted 41M+ viewers, most-viewed men's championship fight this century
  • Ads revenue on track to more than double in 2025

Forward Guidance & Outlook

For Q4 2025, Netflix expects revenue of $11.96 billion (17% reported growth, 16% F/X neutral) with a 23.9% operating margin. For full-year 2025, the company expects $45.1 billion in revenue (16% growth, 17% F/X neutral), in-line with prior expectations. Full-year 2025 operating margin is now forecast at 29%, down from 30% previously due to the Brazilian tax matter. Free cash flow for 2025 is now expected to be approximately $9 billion, up from the prior forecast of $8-$8.5 billion, reflecting timing of cash payments and lower content spend. The company expects to more than double its ads revenue in 2025 and does not expect the Brazilian tax matter to have a material impact on future results.

NFLX YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$4.0B$8.0B$12.0B$9.8B$11.5BRevenue$2.9B$3.2BOperating Income$2.4B$2.5BNet Income
$0$4.0B$8.0B$12.0BRevenueOperating IncomeNet Income

NFLX Revenue by Segment

UCAN (United States and Canada)$5.1B+17.0%
EMEA (Europe, Middle East, and Africa)
LATAM$1.4B+10.0%
APAC$1.4B+21.0%
LATAM (Latin America)
APAC (Asia-Pacific)

NFLX Revenue by Geography

North America$5.1B+17.0%
EMEA$3.7B+18.0%
Latin America$1.4B+10.0%
Asia Pacific$1.4B+21.0%

Figures from SEC filings and company reports. Not investment advice.