Catenaa, Wednesday, October 22, 2025- Netflix stock fell over 8% after it missed earnings expectations on both revenue and profit, due to expenses tied to a dispute with Brazilian tax authorities.
Netflix reported revenue of $11.51 billion, just shy of Bloomberg consensus estimates of $11.52 billion and slightly below the company’s own guidance of $11.53 billion. That compares to $9.82 billion in the same quarter last year.
Earnings per share came in at $5.87, missing analyst expectations of $6.94 and Netflix’s internal forecast of $6.87, though still above the $5.40 reported a year ago.
The company guided to revenue for the current quarter above Wall Street expectations, forecasting Q4 revenue of $11.96 billion compared to the $11.90 billion analysts polled by Bloomberg had expected.
Earnings are also expected to exceed expectations for the quarter. The company sees $5.45 a share, higher than analyst estimates of $5.42.
For full-year 2025, Netflix expects revenue of $45.1 billion, toward the upper end of its previous $44.8 billion to $45.2 billion forecast range.
Netflix reported an operating margin of 28%, below its forecast of 31.5%, due to an unexpected expense tied to an ongoing dispute with Brazilian tax authorities.
Animated breakout hit “KPop Demon Hunters” also became Netflix’s most-viewed film of all time, with 325 million views, underscoring the streamer’s ability to generate massive hits from relatively unknown IP.
Netflix said it now has a “solid foundation” and is “increasingly confident” in the outlook for its ads business, noting that ad revenue is on track to more than double in 2025 from a still-small base following a US upfront that saw commitments more than double year over year.
