Netflix (NFLX) earnings Q3 2025

Shares of Netflix fell as much as 7% after the company posted a third-quarter earnings miss after the closing bell Tuesday.

The streamer cited an ongoing dispute with Brazilian tax authorities for the weaker-than-estimated results.

“Operating margin of 28% was below our guidance of 31.5% due to an expense related to an ongoing dispute with Brazilian tax authorities that was not in our forecast,” the company said in a shareholder letter. “Absent this expense, we would have exceeded our Q3’25 operating margin forecast. We don’t expect this matter to have a material impact on future results.”

Revenue for the quarter rose 17%, in line with analyst expectations. Netflix said the growth was driven by membership gains, pricing adjustments and increased ad revenue. For the fourth quarter, Netflix expects revenue to rise 17% year over year as those trends continue.

Here’s how the company did, compared with estimates from analysts polled by LSEG:

• Earnings per share: $5.87 vs. $6.97, according to LSEG
• Revenue: $11.51 billion vs. $11.51 billion, according to LSEG

Netflix reported net income of $2.55 billion, or $5.87 per share, up from $2.36 billion, or $5.40, in the same quarter a year prior.

For the full-year, Netflix is predicting $45.1 billion in revenue, a 16% jump from the year prior, and in line with previous expectations of revenue growth of between 15% and 16%.

The company did alter its operating margin forecast for the year, stating that it now expects it to be 29% instead of the prior projection of 30%. Netflix cited the impact of the Brazilian tax matter for that change.

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