Overview
- Netflix reported Q4 2025 net income of $2.42 billion on revenue of $12.05 billion, topping expectations and reaching a record 325 million paid subscribers.
- Advertising sales in 2025 exceeded $1.5 billion, more than 2.5 times the prior year.
- Guidance for 2026 calls for $50.7 billion to $51.7 billion in revenue, with expectations to double ad revenue versus 2025.
- The company revised its Warner Bros offer to an all-cash deal near $72 billion and paused share repurchases to help finance the transaction, which executives framed as a way to expand its library and intellectual property.
- Netflix shares closed down 1.08% after falling as much as 4.9% intraday, reflecting investor caution around the deal and capital allocation shift.