Netflix has reported that FY revenue stood at $45.2 billion (€38.5bn) for 2025 (+16 per cent year over year, or 17 per cent on a FX-neutral basis) beating Wall Street estimates. Ad revenue rose more than 2.5x to over $1.5 billion. The company reported that it exceeded 325 million subscribers in Q4 – despite previously stating it would no longer share subscriber numbers.

Q4 revenue grew 17.6 per cent year over year to $12.o5 billion, driven primarily by membership growth, higher pricing, and increased ad revenue. Despite unfavourable F/X movements during the quarter, Netflix said Q4 revenue was 1 per cent above its own guidance attributed to to stronger-than-forecasted membership growth and ad sales

The streaming giant said that engagement “remains healthy” and, in the second half of 2025, viewing hours increased 2 per cent year over
year, driven by a 9 per cent rise in viewing of branded originals.

Netflix pointed to live events as being a draw in 2025, with the Anthony Joshua vs Jake Paul boxing match and Christmas Day NFL driving “disproportionate excitement and signups”. This year Netflix will deliver its first local live event outside the US with the World Baseball Classic (WBC) taking place in Japan. Netflix will stream all 47 games of the 2026 WBC live and on demand for viewers in Japan, where the event is hugely popular. Netflix is also expanding its live slate with new show Star Search, with live fan voting, Skyscraper Live, and three Major League Baseball events including an exclusive Opening Night game and the Home Run Derby.

Netflix said it expects 2026 revenue of $50.7 billion – $51.7 billion (+12 per cent – 14 per cent year over year) with ad revenue expected to roughly double, and an operating margin of 31.5 per cent, noting that the “entertainment business remains vibrant and intensely competitive” and that the company is “optimistic about [the] future”.

Despite the strong results, Netflix shares dropped by over 4 per cent in after-hours trading on January 20th as uncertainty hangs over the stock amid its pending $83 billion deal for Warner Bros Discovery (WBD).

What Netflix subscribers watched in H2 2025

Netflix revealed that animated movie KPop Demon Hunters set records as its most-watched title over a six-month period with 482 million views in the second half of 2025. Additonally, fans singing along to the KPop Demon Hunters Lyric Videos pulled in another 32 million views.

The return of Stranger Things captivated audiences worldwide. Season 5 became was Netflix’s most-watched show in H2 2025 with 94 million views. All five seasons of the celebrated series, which debuted in 2016, ranked among the top 15 most-watched shows in the half, with a combined 275 million views.

Wednesday was also a big draw. Season 2 of The Addams Family spin-off was the #1 most-watched show in the report with 124M views, with Season 1 ranking eighth with 47 million views. 

Non-English language titles accounted for over a third of all viewing, with Korean, Spanish and Japanese shows and films among the most-watched.

WBD takevoer

In a letter to shareholders, Netflix explained how it intends to incorporate WBD into its business, should the deal go through.

“We believe our proposed purchase of Warner Bros will allow us to accelerate our business strategy. Together, we see two main areas of opportunity. First, Warner Bros’ library, development and IP will allow us to provide an even broader and higher-quality selection of content for members; and, second, the addition of HBO Max will allow us to offer more personalised and flexible subscription options, better meeting the diverse preferences of our global audience. Netflix and Warner Bros are highly complementary businesses and together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry. This will allow us to offer more choice and greater value to consumers. Additionally, we’ll expand production capacity in the US and abroad and grow investment in original content over the long-term, which will create jobs and help sustain a healthy entertainment industry,” said the letter.

“We’re working really hard to close the acquisition of Warner Bros Studios and HBO, which we see as a strategic accelerant – and we’re doing all this while we’re driving and sustaining healthy growth,” Netflix co-CEO Ted Sarandos said on earnings call.

Netflix has commenced the regulatory process, Sarandos confirmed.

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Tags: netflix, NFL, Stranger Things, WBD