Netflix Q3 2025 revenue up, earnings miss on Brazilian tax dispute

Netflix reported third quarter 2025 revenue of $11.51 billion on Oct. 21, a 17.2 percent increase from a year earlier, but posted adjusted earnings of $5.87 per share, below Wall Street expectations, and recorded a quarter that saw a drop in operating margin driven in part by a $619 million expense tied to an ongoing dispute with Brazilian tax authorities, the company said in its shareholder letter. The results underscored continuing strength in content and advertising while highlighting new costs that trimmed profitability.

The company said advertising sales reached their strongest quarter ever and cited the animated film KPop Demon Hunters as its most popular feature to date. Netflix has stopped reporting subscriber totals in its quarterly filings, but management and outside analysts point to a mix of price adjustments, product changes and hit programming as key growth drivers. The company reported a larger operating margin in the prior quarter, when Netflix posted $11.08 billion in revenue and $7.19 in earnings per share, and raised its full-year free cash flow target as part of a string of recent positive results.

Company executives discussed strategy and industry dynamics...