• by Wayne Friedman , 6 hours ago

Coming just after the news of an improved all-cash deal to buy Warner Bros. Discovery, Netflix overdelivered on analysts' expectations on its fourth-quarter 2025 revenue and net income results.

Revenue was up 18% to $12.1 billion, with net income 30% higher to $2.4 billion. Netflix stock was down 5% in after-market stock-market trading on Tuesday. 

The company says advertising revenue grew more than two-and-a-half times over 2024 results to $1.5 billion.

Brian Wieser, media analyst/founder of Substack Madison and Wall, estimates that around 70% of that number is from U.S. advertising sales.

“At around 5% of Netflix’s total U.S. revenues, advertising is becoming increasingly important – especially consideringthe benefits that an ad-supported business brings in terms of reducing customer churn or acquiring new subscribers.”

He estimates -- per Netflix guidance -- that ad revenue should double next year.

“To the extent this occurs, Netflix should find itself among (or close to) the top twenty sellers of advertising globally outside of China, and on par with other large sellers of advertising such as RTL, Televisa Univision and I Heart Media.”

Netflix's global paid subscribers climbed to 325 million in the fourth quarter, compared to 300 million at the end of third-quarter 2025.

Viewing hours in the second half of 2025 climbed 2% year-over-year -- with its original Netflix content 9% higher. Non-branded viewing hours declined year-over-year.

Top shows during the fourth quarter included "Stranger Things" with 120 million views (in its final season, "Nobody Wants This" with 31 million (Season Two) and "Selling Sunset" with 11 million (Season Nine).

In terms of its ongoing efforts to acquire Warner Bros. Discovery film/TV studios, HBO Max and HBO, the company improved its offer to an all-cash deal at $27.75, valued at $72 billion, according to analysts. It had been a cash-and-stock offer.

Its battle with Paramount Skydance now puts it on equal footing, analysts said. Paramount wants to buy the entire WBD company, including its cable TV networks -- $30.00 a share, valued at over $108 billion.