Netflix Reports Strong Finish to Fiscal Year with 18% Revenue Growth
Netflix has reported a strong finish to its fiscal year, with revenue climbing 18% in the fourth quarter to just over $12 billion compared to the same period last year. This growth was driven by an increase in paid memberships, which surpassed the 325-million mark, as well as growth in the company’s advertising business and higher prices.
The streaming giant’s profits during the same period reached $2.4 billion, or 56 cents a share, up from $1.87 billion, or 43 cents a share, a year earlier. These results were slightly ahead of Wall Street estimates, indicating a positive trend for the company. Total engagement on the platform, measured by the amount of time users spent watching content, rose 2% in the second half of the year.
Popular Shows and Movies Drive Engagement
The company saw a significant boost in the quarter from the final season of its hit series “Stranger Things,” as well as other popular shows, documentaries, and movies, including Guillermo del Toro’s “Frankenstein” and “Wake Up Dead Man: A Knives Out Mystery.” Additionally, “KPop Demon Hunters” broke records as the most-watched movie with 482 million views in the last half of 2025, with users also showing interest in “KPop Demon Hunters Lyric Videos,” which scored 32 million views.
The streamer’s top series was the second season of “Wednesday,” which pulled in 124 million views, with the first season also performing well with 47 million more views. These numbers demonstrate the ongoing appeal of Netflix’s original content to its large user base.
Annual Revenue and Future Plans
For the year, Netflix reported revenues of $45.2 billion, up 16% from 2024. This growth is a testament to the company’s ability to adapt and expand its offerings in a competitive streaming market. The latest earnings report comes as Netflix is pursuing a significant acquisition, having modified its offer to buy Warner Bros. Discovery to an all-cash bid valued at $82.7 billion.
The potential acquisition has its share of supporters and detractors, with Netflix shares experiencing a decline since the announcement in December. As Emarketer senior analyst Ross Benes noted, “Investors will ponder whether Netflix becoming HBO faster than HBO became Netflix serves their interest.” The deal’s outcome and its implications for the streaming and entertainment industries remain to be seen, especially with rival bidder Paramount continuing its hostile takeover attempt.
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