Netflix delivered a strong performance in the fourth quarter of 2025, reporting a profit of $2.41 billion on revenue of $12 billion. These results exceeded the company’s projections, which anticipated $11.96 billion in revenue and $2.35 billion in net income.

By the end of 2025, Netflix had more than 325 million paid subscribers, an increase from 301 million at the close of 2024. The company transitioned to reporting subscriber numbers annually after 2024, moving away from quarterly updates.

All four of Netflix’s operating regions experienced double-digit revenue growth:

• North America: Up 18% to $5.34 billion
• Europe, Middle East, and Africa: $3.87 billion
• Latin America: Up 15% to $1.41 billion
• Asia Pacific: Up 17% to $1.42 billion

For the full fiscal year, Netflix generated $45.2 billion in revenue, marking a 16% year-over-year increase, and achieved an operating margin of 29.5%, up three percentage points. Advertising revenue saw significant growth, rising over 250% to more than $1.5 billion.

In the second half of 2025, subscribers watched 96 billion hours of content, a 2% increase (1.5 billion hours) compared to the previous year. This growth was largely driven by a 9% rise in viewing of branded original programming, according to co-CEOs Ted Sarandos and Greg Peters.

Looking ahead to 2026, Netflix projects revenue between $50.7 billion and $51.7 billion, with ad revenue expected to approximately double and an operating margin of 31.5%. Sarandos and Peters expressed optimism about the company’s future, noting the continued vibrancy and competitiveness of the entertainment industry.

Regarding the company’s $83 billion all-cash offer for select Warner Bros. Discovery assets, the executives stated that the transaction is ongoing but did not provide further details. They also addressed antitrust concerns, emphasizing that Netflix’s share of TV time remains below 10% in its major markets. For example, Nielsen data showed that in December, Netflix accounted for 9% of U.S. household TV time, while traditional linear TV still represented over 40%.

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