• by Wayne Friedman , Yesterday

Through the third quarter of 2025, Netflix's revenue was in line with company estimates -- up 17% to $11.5 billion -- while its operating profit margin underdelivered at 28.2% -- lower than the margins of 34.1% and 31.7% in the first and second quarter of 2025. 

Netflix pointed to unexpected tax issues in Brazil as the main reason. Net income was at $2.55 billion versus $2.36 billion in the fourth quarter of 2024. Netflix says its year-to-date operating profit margin is still at 31.4% overall.

The company's stock price was down 5.3% to $1,175 in after-market trading.

Revenue grew due to membership growth and higher ad revenue.

“Based on our estimates, Netflix generated around $650 million in U.S. advertising revenue in 2024, implying at least $1.3 billion in U.S. ad revenue in 2025,” says Brian Wieser, media analyst of Madison and Wall. “That would represent roughly 2% of the total U.S. TV ad market and 7% of Netflix’s total U.S. revenues.”

More positive news came with Netflix's “engagement” -- the viewing time for its content -- now showing growth of 15% in the U.S. and 22% in the U.K. versus the fourth quarter of 2022. Growth has been modest, with seasonal adjustments in recent quarterly periods.

In the U.S., Netflix's share of total TV time has grown 9% in September year-over-year (a 8.6% share), per Nielsen's Gauge measure, which Netflix says comes from the measurement company’s vMVPD (virtual multichannel video program distributors) methodology.