Netflix, Inc. (NFLX) Q3 2025 Financial Results Summary
Release Date: October 21, 2025
Netflix, Inc. released its Q3 2025 financial results, reporting solid revenue growth amid challenging circumstances. The following is a summary of key financial metrics and company performance highlights from the report.
Financial Summary
- Revenue:
- Q3 2025 revenue reached $11.51 billion, a 17% growth compared to $9.82 billion in Q3 2024.
- Operating Income:
- Total operating income was $3.25 billion, representing a 12% increase year-over-year from $2.91 billion.
- Operating Margin:
- The operating margin for Q3 2025 stood at 28.2%, a decrease from 29.6% in Q3 2024, due to an unforeseen $619 million expense related to Brazilian tax authorities.
- Net Income:
- Net income was $2.55 billion, up from $2.36 billion, marking an 8% increase year-over-year.
- Diluted Earnings per Share (EPS):
- Diluted EPS was reported at $5.87, compared to $5.40 in Q3 2024, indicating a 9% rise.
- Free Cash Flow:
- The free cash flow for the quarter was $2.66 billion, an increase from $2.19 billion year-over-year.
Quarterly Highlights
- Revenue and Engagement:
- Q3 2025 revenue growth of 17% was driven by membership growth, pricing adjustments, and increased advertising revenue.
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The company achieved its highest quarterly view share ever in the US and UK, with growth of 15% and 22%, respectively, since Q4 2022.
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Content and Original Programming:
- Q3 saw successful series including Wednesday, Happy Gilmore 2, and KPop Demon Hunters, the latter becoming the company’s most popular film ever with 325 million views.
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A diverse content slate was delivered, including multiple anticipated series and films to be released in Q4.
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Ad Sales Expansion:
- The quarter marked Netflix’s best ad sales quarter to date, with commitments in the US doubling from the previous year.
Regional Performance
- United States and Canada (UCAN):
- UCAN revenue grew 17% year-over-year, reaching $5.07 billion.
- Europe, Middle East, and Africa (EMEA):
- EMEA revenue stood at $3.70 billion, reflecting 18% growth year-over-year.
- Latin America (LATAM):
- LATAM revenue increased to $1.37 billion, up 10% year-over-year.
- Asia-Pacific (APAC):
- APAC showed growth of 21%, with a revenue of $1.37 billion.
Cash Flow and Capital Structure
- Operating Cash Flow:
- Q3’s cash provided by operating activities was $2.83 billion, a rise from $2.32 billion in the same quarter last year.
- Share Repurchase:
- During Q3 2025, Netflix repurchased 1.5 million shares for $1.9 billion. The remaining share repurchase authorization is approximately $10.1 billion.
- Debt and Liquidity:
- As of Q3 2025, Netflix reported gross debt of $14.5 billion, with cash and cash equivalents totaling $9.3 billion.
Guidance for Q4 and Full Year 2025
- Expected Q4 Revenue Growth:
- Revenue for Q4 2025 is projected to grow by 17%, with an anticipated operating margin of 23.9%, reflecting a year-over-year improvement.
- Full Year Revenue Guidance:
- For the full year 2025, Netflix expects total revenue to reach $45.1 billion, growing at 16% year-over-year.
Conclusion
Netflix’s Q3 2025 results demonstrate a resilient performance amidst operating challenges. With a strong content slate and increasing engagement metrics, the company continues to focus on enhancing both membership acquisition and content offerings as it heads into Q4 and beyond.
| September 30, 2025 | June 30, 2025 | September 30, 2024 | Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |
|---|---|---|---|---|---|
| Revenues | 11,510,307 | 11,079,166 | 9,824,703 | 33,132,274 | 28,754,453 |
| Cost of revenues | 6,164,250 | 5,325,311 | 5,119,884 | 16,752,708 | 15,271,100 |
| Sales and marketing | 786,295 | 713,265 | 642,926 | 2,187,930 | 1,941,350 |
| Technology and development | 853,584 | 824,683 | 735,063 | 2,501,090 | 2,148,790 |
| General and administrative | 457,931 | 441,213 | 417,353 | 1,320,606 | 1,248,365 |
| Operating income | 3,248,247 | 3,774,694 | 2,909,477 | 10,369,940 | 8,144,848 |
| Other income (expense): | |||||
| Interest expense | -175,294 | -182,649 | -184,830 | -542,115 | -526,130 |
| Interest and other income (expense) | 36,457 | 39,630 | -21,693 | 126,986 | 212,671 |
| Income before income taxes | 3,109,410 | 3,631,675 | 2,702,954 | 9,954,811 | 7,831,389 |
| Provision for income taxes | -562,494 | -506,262 | -339,445 | -1,392,131 | -988,365 |
| Net income | 2,546,916 | 3,125,413 | 2,363,509 | 8,562,680 | 6,843,024 |
| Earnings per share: | |||||
| Basic | 6.00 | 7.35 | 5.52 | 20.12 | 15.91 |
| Diluted | 5.87 | 7.19 | 5.40 | 19.67 | 15.56 |
| Weighted-average shares of common stock | |||||
| outstanding: | |||||
| Basic | 424,455 | 425,211 | 428,239 | 425,635 | 430,125 |
| Diluted | 434,039 | 434,883 | 437,898 | 435,284 | 439,757 |
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | 9,287,287 | 7,804,733 |
| Short-term investments | 37,105 | 1,779,006 |
| Other current assets | 3,638,543 | 3,516,640 |
| Total current assets | 12,962,935 | 13,100,379 |
| Content assets, net | 32,639,879 | 32,452,462 |
| Property and equipment, net | 1,837,889 | 1,593,756 |
| Other non-current assets | 7,494,132 | 6,483,777 |
| Total assets | 54,934,835 | 53,630,374 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Current content liabilities | 4,102,640 | 4,393,681 |
| Accounts payable | 793,233 | 899,909 |
| Accrued expenses and other liabilities | 3,111,311 | 2,156,544 |
| Deferred revenue | 1,724,675 | 1,520,813 |
| Short-term debt | — | 1,784,453 |
| Total current liabilities | 9,731,859 | 10,755,400 |
| Non-current content liabilities | 1,591,973 | 1,780,806 |
| Long-term debt | 14,463,020 | 13,798,351 |
| Other non-current liabilities | 3,193,948 | 2,552,250 |
| Total liabilities | 28,980,800 | 28,886,807 |
| Stockholders’ equity: | ||
| Common stock | 7,080,325 | 6,252,126 |
| Treasury stock at cost | -20,270,631 | -13,171,638 |
| Accumulated other comprehensive income (loss) | -719,256 | 362,162 |
| Retained earnings | 39,863,597 | 31,300,917 |
| Total stockholders’ equity | 25,954,035 | 24,743,567 |
| Total liabilities and stockholders’ equity | 54,934,835 | 53,630,374 |
| Supplemental Information | ||
| Total streaming content obligations* | 20,940,900 | 23,248,931 |
- Total streaming content obligations are comprised of content liabilities included in “Current content liabilities” and “Non-current content liabilities” on the Consolidated Balance Sheets and obligations that are not reflected on the Consolidated Balance Sheets as they did not yet meet the criteria for recognition.
