Key Financial Data
- Revenue, FY 2025: $45.2 billion (+16% year-over)
- Net income, FY 2025: $11 billion (+26%)
- Advertising revenue, FY 2025: around $1.5 billion (+2.5x)
- Revenue, Q4 2025: $12.1 billion (+18%)
- Net income, Q4 2025: $2.4 billion (+29%)
- Read more coverage of Q4 and FY 2025 media earnings
Netflix reported higher revenue, profits and cash flow in 2025, closing the year with its strongest operating margin to date and forecasting continued growth in 2026 as advertising becomes a larger part of the business.
The world’s-largest premium streaming company said full-year revenue rose 16 percent to $45.2 billion dollars, or 17 percent on a foreign-exchange neutral basis, according to its shareholder letter released Tuesday.
Operating income increased to $13.3 billion, lifting the operating margin to 29.5 percent, compared with 26.7 percent in 2024. Net income for the year totaled $11.0 billion, up from $8.7 billion a year earlier.
Fourth-quarter results showed similar momentum. Revenue rose 18 percent year over year to $12.1 billion, driven by membership growth, higher pricing and expanding advertising sales. Operating income climbed 30 percent to roughly $3.0 billion, while net income rose to $2.4 billion from $1.9 billion in the same quarter last year. Diluted earnings per share increased 31 percent to $0.56.
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Netflix said it crossed 325 million paid memberships globally during the fourth quarter. The company no longer reports quarterly net subscriber additions, instead emphasizing revenue growth, operating margin and engagement as its primary performance metrics.
Advertising continued to scale rapidly. Netflix reported ad revenue of more than $1.5 billion in 2025, more than 2.5 times higher than the prior year. Management said stronger-than-expected ad sales contributed to fourth-quarter revenue coming in above guidance, despite unfavorable foreign exchange movements.
Cash generation improved sharply. Net cash provided by operating activities totaled $10.1 billion for the full year, compared with $7.4 billion in 2024. Free cash flow reached $9.5 billion, up from $6.9 billion a year earlier. In the fourth quarter alone, free cash flow was $1.9 billion, compared with $1.4 billion in the same period last year.
Engagement remained steady: In the second half of 2025, Netflix users watched 96 billion hours of content, an increase of 2 percent year over year. Viewing of branded originals rose 9 percent, offset in part by lower viewing of licensed, non-branded content following an elevated licensing period in 2023 and 2024.
Looking ahead, Netflix forecast 2026 revenue of $50.7 billion to $51.7 billion, representing growth of 12 percent to 14 percent year over year. The company expects advertising revenue to roughly double in 2026 compared with 2025.
Netflix is targeting a 2026 operating margin of 31.5 percent, which includes approximately $275 million of acquisition-related costs tied to its pending purchase of Warner Bros Discovery’s (WBD) film and studio businesses and related intellectual property.
On Tuesday, Netflix amended its bid for WBD, converting it to an all-cash offering valued at $27.75 per share. The company faces hostile competition from Paramount Global, which is pursuing its own acquisition of the entire WBD business, including its cable networks.
