Netflix has reported third-quarter 2025 revenue of $11.51bn, up 17.2%, but lower than expected earnings per share of $5.87. The streaming giant,
Netflix has reported third-quarter 2025 revenue of $11.51bn, up 17.2%, but lower than expected earnings per share of $5.87.
The streaming giant, which no longer reveals subscriber numbers in its quarterly financial reports, said in its letter to shareholders that a drop in its third-quarter operating margin was due to a $619m expense “related to an ongoing dispute with Brazilian tax authorities regarding certain non-income tax assessments”.
The company touted the success during the quarter of its most popular feature ever, animated hit KPop Demon Hunters, and its best quarter ever in advertising sales.
During a video interview to answer questions from analysts, co-CEOs Ted Sarandos and Greg Peters were guarded on the likelihood of Netflix getting involved in Hollywood merger and acquisition activity, which is expected to boost after the takeover of Paramount and Warner Bros Discovery’s announcement that it is reviewing sale possibilities.
“It’s true that historically we’ve been more builders than buyers, and we think we have plenty of runway for growth without fundamentally changing that playbook,” said Sarandos, who added that the streamer “has no interest in owning legacy media networks.”
While the company will look at M&A opportunities, Sarandos added, “In general we believe that we can and will be choosy.”
Peters said none of the recent industry mergers “were a fundamental shift in the competitive landscape”.
“Watching some of our competitors potentially get bigger via M&A does not change, in and of itself at least, our view of the competitive landscape,” Peters went on.
Sarandos also said there has been no change in Netflix’s strategy on theatrical releases, in spite of the company’s recent success with a one-weekend cinema release for KPop Demon Hunters several months after the film’s streaming debut.
“We believe KPop Demon Hunters actually worked because it was released on Netflix first,” Sarandos said. “If anything, this actually reinforces our strategy, because being on Netflix gave the film a chance to build momentum.”
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