Netflix’s six-quarter winning streak abruptly ended when the streaming giant announced poor Q3 2025 earnings, which caused the stock to fall more than 6% despite an impressive increase in revenue and a positive outlook.
Netflix suffers loss of earnings
On October 21, 2025, Netflix recorded a rare earnings miss, the first Wall Street blockbuster in six quarters after beating expectations. The streaming service posted a profit per stock of 5.87, which was below the 6.88 analysts projected. This surprise deficit pushed shares down over 6% in pre-marketing trade.
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A Brazilian tax dispute occurred unexpectedly and cost the company $619 million. Netflix would have sailed safely above its profit goals without this one-time charge, according to Chief Financial Officer Spence Neumann.
Revenue expansion is high
Netflix still had an impressive revenue story despite the earnings miss. The company reported quarterly revenue of $11.51 billion, good growth of 17 percent on a year-to-year basis. This number was slightly lower than the analyst projection of $11.52 billion but indicated the platform’s continued momentum in the streaming industry.
The increase in revenue was because of growing membership, strategic changes in prices, and fast-growing advertising revenues. Ad-supported subscriptions to Netflix are gaining momentum, as the company has doubled its advertising revenue over the past quarter.
Positive Outlooks Ahead
Netflix has a bright future ahead. The firm estimated revenue to be 11.96 billion in Q4 which is above the estimate of Wall Street at 11.90 billion. Netflix expects to generate total revenue of 45.1 billion in 2025, which represents a 16% growth rate in a year.
The streaming giant Netflix has also increased its free cash flow projections by around 9 billion, compared to its previous projections of about 8-8.5 billion. Netflix also recorded the highest share of TV views in the US and UK markets, which strengthens its dominance in the OTT industry.
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