Netflix Third Quarter 2025 Earnings

• Revenue in Q3 grew 17%, in-line with our forecast. Operating margin of 28% was below our guidance of 31.5% due to an expense related to an ongoing dispute with Brazilian tax authorities that was not in our forecast. Absent this expense, we would have exceeded our Q3'25 operating margin forecast. We don’t expect this matter to have a material impact on future results.
• Engagement remains healthy. We hit our highest quarterly view share ever in the US and UK, which has grown 15% and 22%, respectively since Q4’22, according to Nielsen and Barb.
• In Q3, we made further progress against our 2025 priorities:
  • We delivered a great slate including Wednesday S2, Bon Appétit, Your Majesty from South Korea, and Happy Gilmore 2, while KPop Demon Hunters became our most popular film ever.
  • We recorded our best ad sales quarter ever and doubled our commitments in the US upfront.
  • The Canelo vs. Crawford boxing match became the most-viewed men’s championship fight this century.
• We’re finishing the year with good momentum and have an exciting Q4 slate, including the final season of Stranger Things, new seasons of The Diplomat and Nobody Wants This, Guillermo del Toro’s Frankenstein, Kathryn Bigelow’s A HOUSE OF DYNAMITE, Rian Johnson’s Wake Up Dead Man: A Knives Out Mystery as well as more live events including NFL Christmas Day games and the Jake Paul vs. Tank Davis boxing match.