Summary
Netflix, Inc. (NFLX) filed its annual report for the period ending December 30, 2025, on January 22, 2026. The company reported total revenues of $45.18 billion for 2025, representing a 16% increase year-over-year, primarily driven by membership growth, price adjustments, and growing advertising revenue. Operating income saw a substantial 28% increase to $13.33 billion, resulting in an improved operating margin of 29.5%. Net income rose by 26% to $10.98 billion. A significant development highlighted in the filing is the definitive agreement to acquire Warner Bros. Discovery's (WBD) streaming and studios businesses for an enterprise value of approximately $82.7 billion. This transformative acquisition is expected to close within 12-18 months, subject to regulatory and shareholder approvals. To finance this acquisition, Netflix has arranged substantial debt facilities, including a $42.2 billion senior unsecured bridge term loan commitment and other credit facilities, which will significantly increase its leverage. Despite strong financial performance in 2025, the company faces a highly competitive market, ongoing content acquisition costs, regulatory scrutiny in various international markets, and the complexities of integrating the large WBD acquisition. The company continues its focus on improving member experience through compelling content and service enhancements, while also navigating evolving consumer behaviors and technological advancements.
Financial Highlights
53 data points| Revenue | $45.18B |
| Cost of Revenue | $23.28B |
| Gross Profit | $21.91B |
| R&D Expenses | $3.39B |
| Operating Income | $13.33B |
| Net Income | $10.98B |
| EPS (Basic) | $2.58 |
| EPS (Diluted) | $2.53 |
| Shares Outstanding (Basic) | 4.25B |
| Shares Outstanding (Diluted) | 4.34B |
Key Highlights
- 1Total revenues grew 16% to $45.18 billion in 2025, driven by membership growth, price increases, and advertising revenue.
- 2Operating income increased 28% to $13.33 billion, leading to an improved operating margin of 29.5% in 2025.
- 3Net income grew 26% to $10.98 billion in 2025, reflecting strong top-line growth and operational efficiencies.
- 4Netflix has entered into a definitive agreement to acquire Warner Bros. Discovery's streaming and studios businesses for an enterprise value of approximately $82.7 billion, a move expected to significantly reshape the company.
- 5The company has secured substantial financing for the WBD acquisition, including a $42.2 billion bridge loan facility, which will increase its debt load.
- 6Content obligations remain a significant long-term commitment, with $24.04 billion due over the coming years, underscoring ongoing investment in content.
- 7The company has authorized significant share repurchases, with $8.0 billion remaining under its buyback program as of December 31, 2025.