Netflix (NFLX) earnings Q3 2025

shares netflix It fell as much as 7% after the company reported third-quarter earnings after the closing bell on Tuesday.

The broadcaster cited an ongoing dispute with Brazilian tax authorities over weaker-than-expected results.

“Operating margin of 28% was below our estimate of 31.5% due to expense related to an ongoing dispute with Brazilian tax authorities that was not included in our estimate,” the company said in a statement. “Without this expense, we would have exceeded our operating margin forecast in the third quarter of ’25. We do not expect this matter to have a material impact on future results.”

Quarterly revenue rose 17%, in line with analyst expectations. Netflix said this was due to membership growth, pricing adjustments and increased advertising revenue.

Netflix reported net income of $2.55 billion ($5.87 per share), down from $2.36 billion ($5.40) in the same quarter a year ago.

Here is the company’s performance compared to the forecasts of analysts participating in the LSEG survey:

• Earnings per share: $5.87 and $6.97 by LSEG
• Revenues: $11.51 billion versus $11.51 billion according to LSEG

Netflix expects revenue to increase 17% in the fourth quarter as it adds more members and sees further growth due to rising subscription prices and advertising revenue.

For the full year, Netflix is ​​forecasting revenue of $45.1 billion, up 16% from a year ago and in line with previous expectations for revenue growth of 15% to 16%.

The company changed its operating margin forecast for this year, stating that it now expects it to be 29%, down from a previous forecast of 30%. Netflix cited the impact of the Brazilian tax issue in this change.

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