Netflix delivered a strong financial and operational performance in 2025, reporting full-year revenue of $45.2 billion, up 16 percent, supported by robust subscriber additions, higher pricing and rapid growth in advertising.
In the fourth quarter, Netflix revenue rose 18 percent to $12.051 billion. The streaming company said growth was primarily driven by membership expansion, price adjustments across several markets and increasing contribution from its ad-supported tier. Operating income in Q4 climbed 30 percent to $3.0 billion, while operating margin expanded by two percentage points to 25 percent, reflecting improved scale and disciplined cost management.
Netflix crossed the milestone of more than 325 million paid memberships during the quarter. For the full year, the streaming giant ended 2025 with over 285 million paid subscribers worldwide, adding nearly 29 million net new subscribers. Growth was strongest in Asia Pacific and Latin America, supported by mobile-only plans, localized pricing strategies and a strong pipeline of regional content.
The ad-supported plan continued to gain traction, reaching more than 40 million monthly active users globally. Netflix said engagement on the lower-priced tier is comparable to standard plans, and the offering is expanding the company’s addressable market without increasing churn.
Content spend disciplined, focus shifts to efficiency and franchises
Netflix maintained a cautious approach to capital expenditure in 2025, with content cash spend of approximately $17 billion. Management emphasized that content investment is increasingly driven by efficiency, audience data insights and long-term franchise development rather than sheer volume.
Engagement remained healthy throughout the year. In the second half of 2025, total view hours increased 2 percent year over year, with members watching 96 billion hours on Netflix, up by 1.5 billion hours compared with the same period a year earlier. Viewing of Netflix-branded originals rose 9 percent in the second half, driven by a strong Q4 slate.
Top-performing returning series included the final season of Stranger Things with 120 million views, Emily in Paris Season 5 with 41 million views, Nobody Wants This Season 2, Selling Sunset Season 9, and anime hit Record of Ragnarok Season 3 from Japan. New global series such as The Beast in Me from the US, The Asset from Denmark, Rulers of Fortune from Brazil and Last Samurai Standing from Japan also delivered strong results.
Netflix also saw solid traction from documentaries, stand-up specials and films. High-performing titles included Guillermo del Toro’s Frankenstein with 102 million views, Wake Up Dead Man: A Knives Out Mystery, A House of Dynamite, and a range of international films from Brazil, Norway and Europe.
Overall engagement growth was partially offset by a year-over-year decline in non-branded viewing hours. Netflix attributed this to a lower volume of licensed second-run content following an elevated licensing period in 2023 and 2024, which was influenced by production disruptions during the WGA strike.
Outlook 2026: Ads, live content, games and global originals
Looking ahead, Netflix forecast 2026 revenue in the range of $50.7 billion to $51.7 billion, representing growth of 12 percent to 14 percent. Advertising revenue is expected to roughly double, while operating margin is projected to expand to 31.5 percent.
Strategic priorities for 2026 include strengthening the core streaming business, further scaling the advertising segment, expanding live programming such as the World Baseball Classic in Japan, and growing newer formats including video podcasts and cloud-first games. Netflix is also working to close its planned acquisition of Warner Bros.
The 2026 content slate features new seasons of major franchises such as Bridgerton Season 4, ONE PIECE Season 2, Avatar: The Last Airbender Season 2, 3 Body Problem Season 2, Lupin Part 4 and the final season of Outer Banks. New scripted series will span markets including the US, UK, India, Korea, Japan, Brazil and Europe, reinforcing Netflix’s global-first content strategy.
On the film side, Netflix plans releases including Peaky Blinders: The Immortal Man, Greta Gerwig’s Narnia, The Rip starring Ben Affleck and Matt Damon, Enola Holmes 3, and several high-profile international productions.
Netflix will also expand licensed content in 2026 through new and extended partnerships with Universal, Paramount and Sony Pictures Entertainment, broadening its film and TV offering across regions.
In addition, Netflix is pushing further into games and creator-led formats. Cloud-based party games are being rolled out to more members, with new titles planned for 2026, including a reimagined FIFA football simulation game. Video podcasts and collaborations with well-known creators are also set to scale during the year.
BABURAJAN KIZHAKEDATH
