Netflix Q4 2025 Earnings: Revenue Hits $12.05B, 325M Subscribers, Warner Bros. Acquisition
Netflix (NFLX) reported Q4 2025 results on January 20, 2026, delivering $12.05 billion in revenue (+18% year-over-year) and crossing the 325 million paid memberships milestone. The streaming giant exceeded its full-year financial objectives with $45.2 billion in annual revenue and a 29.5% operating margin, while announcing an all-cash acquisition of Warner Bros. valued at $27.75 per share.
Q4 2025 Key Numbers at a Glance
Table of Contents
Q4 2025 Financial Results
Netflix delivered strong fourth quarter results, with revenue growing 18% year-over-year (17% on a foreign exchange neutral basis) to $12.05 billion. The growth was driven primarily by membership growth, higher pricing, and increased advertising revenue. Despite unfavorable F/X movements during the quarter, revenue exceeded guidance by 1% due to stronger-than-forecasted membership growth and ad sales.
Operating income reached $2.96 billion in Q4, up 30% year-over-year, with operating margin expanding two percentage points to 24.5%. Diluted earnings per share came in at $0.56 compared to $0.43 in Q4 2024, representing a 31% increase. Net income included approximately $60 million of costs related to the Warner Bros. acquisition bridge loan financing.
| Metric | Q4 2025 | Q4 2024 | YoY Change |
|---|---|---|---|
| Revenue | $12,051M | $10,247M | +18% |
| Operating Income | $2,957M | $2,273M | +30% |
| Operating Margin | 24.5% | 22.2% | +2.3 pts |
| Net Income | $2,419M | $1,869M | +29% |
| Diluted EPS | $0.56 | $0.43 | +31% |
| Free Cash Flow | $1,872M | $1,378M | +36% |
Note: Share and per share amounts reflect the 10-for-1 stock split effected on November 14, 2025.
Full Year 2025 Performance
Netflix met or exceeded all of its full year 2025 financial objectives. Annual revenue grew 16% to $45.2 billion (17% on a F/X neutral basis), while operating margin increased to 29.5% from 26.7% in 2024. The company made significant progress in advertising, with ad revenue growing more than 2.5x versus 2024 to over $1.5 billion in only its third year selling advertising.
Full Year 2025 Highlights
Quarterly Revenue Progression 2025
| Quarter | Revenue | YoY Growth | Operating Margin | Net Income | Diluted EPS |
|---|---|---|---|---|---|
| Q1 2025 | $10,543M | +12.5% | 31.7% | $2,890M | $0.66 |
| Q2 2025 | $11,079M | +15.9% | 34.1% | $3,125M | $0.72 |
| Q3 2025 | $11,510M | +17.2% | 28.2% | $2,547M | $0.59 |
| Q4 2025 | $12,051M | +17.6% | 24.5% | $2,419M | $0.56 |
| Full Year 2025 | $45,183M | +16% | 29.5% | $10,981M | $2.53 |
Regional Revenue Breakdown
Netflix saw strong performance across all geographic regions in Q4 2025. The United States and Canada (UCAN) region remained the largest contributor at $5.34 billion, while Europe, Middle East, and Africa (EMEA) generated $3.87 billion. Latin America showed the strongest F/X-neutral growth at 20%.
| Region | Q4 2025 Revenue | YoY Growth | F/X Neutral Growth |
|---|---|---|---|
| UCAN (US & Canada) | $5,339M | +18% | +18% |
| EMEA (Europe, Middle East, Africa) | $3,873M | +18% | +15% |
| LATAM (Latin America) | $1,418M | +15% | +20% |
| APAC (Asia-Pacific) | $1,421M | +17% | +19% |
Content & Engagement
With over 325 million paid memberships, Netflix now serves an audience approaching one billion people globally. In the second half of 2025, members watched 96 billion hours on Netflix, up 2% (1.5 billion hours) year-over-year. Viewing of branded originals increased 9% year-over-year in H2 2025.
According to Nielsen, Netflix's share of US TV time reached an all-time high of 9.0% in December 2025, up 0.5 percentage points year-over-year. Linear TV still comprises over 40% of US TV screen time.
Top Performing Q4 2025 Content
| Title | Category | Views (Millions) |
|---|---|---|
| Stranger Things (Final Season) | Returning Series | 120M |
| Guillermo del Toro's Frankenstein | Film | 102M |
| A House of Dynamite | Film | 78M |
| Wake Up Dead Man: A Knives Out Mystery | Film | 66M |
| Sean Combs: The Reckoning | Documentary | 54M |
| Caramelo (Brazil) | Film | 54M |
| Champagne Problems | Film | 52M |
| My Secret Santa | Film | 51M |
| The Perfect Neighbor | Documentary | 50M |
| The Beast in Me | New Series | 48M |
Views Definition: A view is defined as hours viewed divided by runtime for each title. Views are based on the first 91 days since release (data through January 18, 2026 for recent titles).
Live Programming
Netflix's live events continue to drive engagement, with highlights including Anthony Joshua's knockout of Jake Paul (33 million average minute audience) and NFL Christmas Day games. In 2026, Netflix will stream all 47 games of the World Baseball Classic live in Japan and expand its live slate with Star Search, Skyscraper Live, and three Major League Baseball events.
2026 Guidance
Netflix provided the following guidance for 2026, based on F/X rates as of January 1, 2026:
2026 Full Year Guidance
Q1 2026 Forecast
| Metric | Q1 2026 Forecast | Q1 2025 Actual | YoY Change |
|---|---|---|---|
| Revenue | $12,157M | $10,543M | +15.3% |
| Operating Income | $3,906M | $3,347M | +17% |
| Operating Margin | 32.1% | 31.7% | +0.4 pts |
| Net Income | $3,264M | $2,890M | +13% |
| Diluted EPS | $0.76 | $0.66 | +15% |
The 2026 margin forecast includes approximately $275 million of acquisition-related expenses and reflects content amortization growth of approximately 10%, with higher growth in the first half than the second half due to title launch timing.
Warner Bros. Acquisition
Netflix announced in December 2025 that it will acquire Warner Bros., including its film and television studios, HBO Max, and HBO. On January 20, 2026, Netflix and WBD amended their merger agreement to an all-cash transaction valued at $27.75 per WBD share, replacing the previous mix of cash and Netflix stock.
The revised structure provides greater certainty of value and expedites the timeline to a WBD shareholder vote. Netflix has obtained $42.2 billion in bridge facility commitments to support the acquisition, with plans to reduce these commitments through future bond offerings and accumulated cash.
Strategic Rationale
- Content Library: Warner Bros.' library, development, and IP will provide broader and higher-quality content selection
- Subscription Options: HBO Max addition enables more personalized and flexible subscription tiers
- Production Capacity: Expanded production capacity in the US and abroad
- Long-term Investment: Increased investment in original content to create jobs and sustain a healthy entertainment industry
Cash Flow & Capital Structure
Netflix generated $2.1 billion of net cash from operating activities in Q4 2025 versus $1.5 billion in Q4 2024. Free cash flow totaled $1.9 billion in Q4 2025 compared to $1.4 billion in Q4 2024.
For full year 2025, the company produced $10.1 billion of net cash from operating activities and $9.5 billion of free cash flow, up from $7.4 billion and $6.9 billion respectively in 2024. Free cash flow exceeded guidance of $9 billion due to timing of a ~$700 million deposit related to an ongoing Brazilian tax dispute shifting from 2025 to 2026.
Balance Sheet (as of December 31, 2025)
| Metric | Value |
|---|---|
| Cash and Cash Equivalents | $9.0B |
| Gross Debt | $14.5B |
| Net Debt | $5.5B |
| Total Assets | $55.6B |
| Stockholders' Equity | $26.6B |
| Content Assets (net) | $32.8B |
Capital Allocation
During Q4 2025, Netflix repurchased 18.9 million shares for $2.1 billion, leaving $8.0 billion remaining under its existing share repurchase authorization. However, the company announced it will pause share buybacks to accumulate cash for the pending Warner Bros. acquisition while maintaining a solid investment grade rating.
Frequently Asked Questions
What was Netflix's Q4 2025 revenue?
Netflix reported Q4 2025 revenue of $12.05 billion, representing 18% year-over-year growth (17% on a foreign exchange neutral basis). This exceeded company guidance by 1% due to stronger-than-forecasted membership growth and advertising sales.
How many subscribers does Netflix have?
Netflix crossed the 325 million paid memberships milestone during Q4 2025. The company now serves an audience approaching one billion people globally.
What is Netflix's 2026 revenue guidance?
Netflix forecasts 2026 revenue of $50.7 billion to $51.7 billion, representing 12% to 14% year-over-year growth. The company targets a 31.5% operating margin and approximately $11 billion in free cash flow for 2026.
What is the Warner Bros. acquisition deal?
Netflix is acquiring Warner Bros. (including HBO Max and HBO) in an all-cash transaction valued at $27.75 per WBD share. The deal structure was amended from a cash-and-stock mix to all-cash on January 20, 2026, to expedite the shareholder vote timeline.
How much is Netflix's advertising revenue?
Netflix's advertising revenue grew more than 2.5x in 2025 to over $1.5 billion. This was only Netflix's third year selling advertising. The company expects ad revenue to roughly double again in 2026.
Did Netflix do a stock split?
Yes, Netflix effected a 10-for-1 forward stock split on November 14, 2025. All share and per share amounts in the Q4 2025 earnings report have been retroactively adjusted to reflect this split.
Data Sources
All financial data and metrics in this article are sourced directly from Netflix's official Q4 2025 Shareholder Letter dated January 20, 2026, available on the Netflix Investor Relations website.
Disclaimer: This article presents data from Netflix's official shareholder letter and financial statements. The analysis provided is for informational purposes only and should not be considered financial or investment advice. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.
Published: January 20, 2026. For corrections or updates, contact our editorial team.
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.