Netflix reported fourth-quarter 2025 revenue of $12.05 billion, representing an 18 percent increase year-over-year, and surpassed 325 million paid subscribers globally.
The streaming platform announced net income of $2.42 billion for the quarter ended December 31, up from $1.87 billion in the same period a year earlier. Operating income reached $2.96 billion, marking a 30 percent year-over-year increase. For full-year 2025, Netflix generated $45.2 billion in total revenue, up 16 percent from 2024, with net income of $10.98 billion and an operating margin of 29.5 percent.
The company's subscriber base grew from 301.6 million at the end of 2024 to more than 325 million by year-end 2025. Regional performance showed double-digit revenue growth across all territories, with North America leading at $5.34 billion in quarterly revenue, up 18 percent. Advertising revenue exceeded $1.5 billion for the full year 2025, growing more than 250 percent from the previous year.
Netflix projects advertising revenue will approximately double to around $3 billion in 2026. The company forecast 2026 revenue between $50.7 billion and $51.7 billion, representing 12 to 14 percent growth, with a targeted operating margin of 31.5 percent. Netflix shares declined more than 4 percent in after-hours trading on Tuesday despite the earnings beat, as investors focused on the company's pending $82.7 billion acquisition of Warner Bros. Discovery's studio and streaming assets. The company announced it would pause share buybacks to accumulate cash for the Warner Bros. deal and has secured bridge loan commitments totaling $42.2 billion. Fourth-quarter performance was driven by membership growth, pricing adjustments, and increased advertising revenue, with December viewership rising 10 percent according to Nielsen data.
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