Analyzing Netflix’s Latest Earnings Report: What Does It Mean?

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Netflix reported strong Q4 earnings for FY25, with revenues reaching $12 billion, an 18% increase year-over-year. The total subscriber count has surpassed 325 million, reflecting continued growth in viewership and a 2% increase in total view hours compared to the previous year. The company’s ad-supported revenue has more than doubled to $1.5 billion, highlighting the effectiveness of its new subscription model.

In addition to its earnings, Netflix has amended its merger agreement with Warner Bros. Discovery (WBD) to facilitate an all-cash transaction valued at $27.75 per WBD share, which is expected to expedite shareholder voting on the deal.

While initial market reactions to Netflix’s results were mixed, the company’s ongoing initiatives, including its foray into live sports and successful ad-supported plans, position it favorably for future growth.

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