Netflix Q4 Revenue Surges 17.6% as Streamer Reaches 325 Million Paid Subscribers

Netflix beat Wall Street expectations for its fourth quarter of 2025, with revenue climbing 17.6% during the quarter, primarily driven by subscriber growth, pricing changes and increased ad revenue.

But the strong results were not enough to stop Netflix shares from falling over 4% in after-hours trading on Tuesday as uncertainty hangs over the streamer’s stock related to its pending $83 billion deal for Warner Bros. Discovery’s streaming and studio assets.

Here are the results for the quarter and 2025:

Subscribers: 325 million paid subscribers, up from its previous disclosure of 301.6 million at the end of 2024.

Net income: $2.42 billion, compared to $1.87 billion a year ago. The figure included roughly $60 million in costs related to a “bridge loan and associated bridge reduction financings” related to the Warner Bros. deal.

Earnings per share: 56 cents per share, compared to 55 cents per share expected from analyst estimates compiled by Yahoo Finance.

Revenue: $12.05 billion, up 17.6%% year over year, compared to $11.97 billion expected from analyst estimates compiled by Yahoo Finance. For the full year, total revenue grew 16% year over year to $45.2 billion. Ad revenue came in at over $1.5 billion for the year.

Operating income: $2.96 billion, up 30% year over year, compared to $2.27 billion a year ago.

The results come as Netflix revised its $83 billion deal for Warner Bros. Discovery’s studio and streaming assets to all-cash in an effort to fast-track a shareholder vote. The move also comes as Netflix shares have fallen below the collar in the company’s original cash-and-stock deal.

The all-cash transaction continues to be valued at $27.75 per share. WBD stockholders will also receive additional value from shares of Discovery Global, Warner’s cable networks which will be spun off in six to nine months.

Shareholders are expected to vote on the new deal by April. Netflix is also engaging with regulators, including the Department of Justice and European Commission, and expects its deal to close within 12 to 18 months from the original deal announcement.

In an effort to thwart the Netflix deal, Paramount Skydance has launched a $30 per share, all-cash hostile takeover bid for all of Warner Bros. Discovery.

The $108.4 billion tender offer is set to expire on Wednesday at 5 p.m. ET, though that deadline is expected to be extended after a Delaware judge dismissed its motion to expedite proceedings in its lawsuit against Warner Bros. Discovery. As of Dec. 19, less than 400,000 WBD shares had been validly tendered to Paramount Skydance. 

More to come…

The post Netflix Q4 Revenue Surges 17.6% as Streamer Reaches 325 Million Paid Subscribers appeared first on TheWrap.