Overview
- Revenue reached $11.51 billion for the quarter, lifted by subscriber growth, price increases and expanding advertising sales.
- A $619 million Brazil-related tax charge reduced the operating margin to 28%, below the 31.5% internal forecast.
- Diluted earnings per share were $5.87 versus the $6.97 consensus, with net income reported at about $2.55 billion.
- Netflix lowered its 2025 operating margin outlook to 29% from 30% and said it would have topped its margin plan absent the charge.
- Shares fell roughly 6% in after-hours trading before a modest regular-session gain, as the company highlighted ad momentum and new K-Pop Demon Hunters merchandising deals with Hasbro and Mattel.