Netflix (NFLX) Earnings Q3 2025

shares of Netflix It fell about 7% in extended trading on Tuesday after the company missed third-quarter earnings, citing an ongoing dispute with Brazilian tax authorities over weakly-estimated results.

The streamer said the specific cost of a 10% tax on certain payments made by Brazilian entities to operations outside the country was not previously anticipated. The company decided to take the impact in the third quarter after it became reasonably likely that Netflix would lose a legal challenge over whether it would be assessed a tax, officials said.

“It’s not a Netflix-specific tax. It’s not even streaming-specific,” Chief Financial Officer Spence Newman said on the company’s earnings call. “Without this expense, we would have exceeded our Q325 operating income and operating margin estimates, and we do not expect this matter to have a material impact on our results.”

Netflix’s third-quarter revenue rose 17%, in line with analysts’ expectations, boosted by subscription growth, price adjustments and increased advertising revenue. In the fourth quarter, Netflix expects revenue to grow 17% year-over-year as those trends continue.

Here’s how the company did in The period ended on September 30Compared to estimates from analysts surveyed by LSEG:

• Earnings per share: According to LSEG, $5.87 vs. $6.97
• Revenue: $11.51 billion versus $11.51 billion, according to LSEG

Netflix reported third-quarter net income of $2.55 billion, or $5.87 per share, up from $2.36 billion, or $5.40, in the same quarter a year ago.

For the full year, Netflix is ​​forecasting revenue of $45.1 billion, an increase of 16% over the prior year and in line with previous expectations for revenue growth of between 15% and 16%.

Citing the Brazilian tax case, the company changed its operating margin forecast for the year and now expects that metric to be 29% instead of the previous estimate of 30%.

Still, Netflix said it posted its best ad sales quarter ever during the period, with co-CEO Greg Peters noting that the company is on track to double ad revenue this year.

“Netflix had its best ad sales quarter to date, but still didn’t provide the statistics for how big the ad business is,” EMarketer senior analyst Ross Baynes said in a statement. “This led to consistent revenue growth this quarter and forecast for next quarter, which will continue to come primarily from subscription fees.”

Netflix raised its prices in January, with its ad-supported level spending.

The streamer’s fourth-quarter content includes a slew of compelling titles, from the fifth and final season of “Stranger Things” and new seasons of “The Diplomat” and “Nobody Wants This” to Guillermo del Toro’s “Frankenstein” and Rian Johnson’s “Wake Up K Dead Man:”

Netflix is ​​still riding on the coattails of “KPop Demon Hunters,” which was released on the platform back in June. The animated film has become Netflix’s most watched movie with over 325 million views on the platform.

Netflix announced on Tuesday that it is reaching out to consumers of animated films Dual production partnership With leading toy companies Hasbro And Mattel. “KPop Demon Hunters” dolls, plush, roleplay items and themed games will be available at retail in spring 2026.

The company also mentioned that it is exploring growth opportunities related to live experience, publishing, beauty and lifestyle as well as film-related food and beverages. “KPop Demon Hunters” is returning to theaters once again during the Halloween holiday weekend.