Following the release of its Q3 earnings results, Netflix issued a statement to shareholders confirming that the company is on track to end the year with a 17% increase in profit.
Netflix reported third-quarter net income of $2.55 billion, however the company cited an ongoing dispute with Brazilian tax authorities for the weaker-than-estimated results.
The quarter also saw the streaming service hit its highest quarterly view share ever in the US and UK, which has grown 15% and 22%, respectively, since Q4’22.
In the letter to shareholders, the company wrote: “Revenue in Q3 grew 17%, in-line with our forecast. 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. 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.”
Moving forward, Netflix says, “We’re finishing the year with good momentum and have an exciting Q4 slate, including the final season of Stranger Things, new seasons of The Diplomat and Nobody Wants This, Guillermo del Toro’s Frankenstein, Kathryn Bigelow’s A HOUSE OF DYNAMITE, Rian Johnson’s Wake Up Dead Man: A Knives Out Mystery as well as more live events including NFL Christmas Day games and the Jake Paul vs. Tank Davis boxing match.”
In Q4’25, the company anticipates revenue of $45.1 billion, a 17% increase, driven by growth in members, pricing, and ad revenue. “We project an operating margin of 23.9%, a two percentage point year-over-year improvement,” the statement read.
Shares of Netflix fell around 7% following the announcement.
Read CEO-NA’s exclusive editorial on Netflix Co-CEO, Reed Hastings
By CEO NA Editorial Staff
