Netflix has reported an 18% year-on-year rise in Q4 revenue to $12.05 billion (€10.27 billion), driven by membership growth, higher pricing and increased advertising sales, and says it ended the quarter above its internal forecast.
The streamer said it crossed the 325 million paid subscriptions (or memberships as Netflix prefers) milestone during the quarter, putting its global audience at “approaching one billion people”. Such figures are now keenly anticipated now that Netflix only reports on them annually.
Profitability also improved. Operating income for Q4 came in at $3.0 billion, with full-year 2025 revenue increasing 16% to $45.2 billion (€38.52 billion), with an operating margin of 29.5%. Netflix said its advertising business scaled sharply, with ad revenue rising more than 2.5x year-on-year to over $1.5 billion (€1.28 billion) in 2025, and it is projecting a “rough doubling” of ad revenue again in 2026.
For 2026, Netflix is anticipating revenues of $50.7 billion to $51.7 billion (€43.23 billion to €44.08 billion) and an operating margin of 31.5%.
Europe remained a key growth engine on the top line. In its regional breakdown, Netflix posted Q4 revenue of $3.87 billion in EMEA (up 18% year-on-year), while UCAN reached $5.34 billion (+18%), LATAM $1.42 billion (+15%) and APAC $1.42 billion (+17%).
Netflix said engagement in the second half of 2025 remained “healthy”, with members watching 96 billion hours, up 2% year-on-year, and viewing of branded originals up 9%. It pointed to a strong Q4 slate across series, films and specials, while flagging that viewing of non-branded (primarily licensed) hours declined year-on-year after an unusually elevated licensing period in 2023-24.
Looking ahead, Netflix highlighted a broad 2026 originals pipeline (including new seasons of titles such as Bridgerton, ONE PIECE, Lupin, Berlin and The Gentlemen), alongside an expanded licensed line-up. It said a new US licensing partnership with Universal will bring new-release live-action films to subscribers, complementing an existing animation deal with Illumination and DreamWorks Animation, and it has also licensed about 20 shows from Paramount for various territories.
As previously reported in Broadband TV News, Netflix also said it has expanded its Pay 1 film pact with Sony Pictures Entertainment from a US-only deal to a global agreement, describing it as the first time a distribution service will premiere Pay 1 theatrical films simultaneously on a global basis, with full global availability targeted for early 2029 as local Sony deals expire.
On the product side, Netflix said it rolled out a redesigned TV experience in 2025 to improve discovery, and that new TV UI capabilities are intended to integrate a wider mix of formats and partners, including video podcasts, TF1 programming in France, live events and games.
For 2026, Netflix signalled more interactive and personalised experiences, including live voting and “Moments”, phone-as-controller gameplay on TV, real-time recommendations, thematic collections, and vertical video experiences on mobile.
It also said it is expanding the use of AI across member experience, creative workflows and advertising: in 2025 it began testing AI tools to help advertisers create custom ads based on Netflix IP, and it is also using AI to speed campaign planning, improve subtitle localisation, and support merchandising and title discovery.
Netflix said it has begun rolling out the next phase of its games strategy with cloud-delivered, TV-based party games (including Boggle, Pictionary, Lego Party and Tetris) to roughly one-third of members, and plans to expand cloud games in 2026, including a newly reimagined FIFA football simulation title.
In live, Netflix positioned big events as a sign-up and engagement lever. It said it will stream all 47 games of the 2026 World Baseball Classic live and on demand in Japan, and is planning additional live formats including Star Search (with live fan voting) plus Major League Baseball events such as an Opening Night game and the Home Run Derby.
On the Warner Bros transaction, Netflix said it has arranged and adjusted a mix of committed facilities to support an all-cash structure, and noted the deal is priced at $27.75 per WBD share. Netflix argues the acquisition would broaden its content library and IP, and that adding HBO Max would enable more flexible subscription options.
