Netflix Inc. has reported its financial performance for the year ended December 31, 2025, highlighting significant growth in key areas. The company's streaming revenues showed a substantial increase, reaching $45.18 billion, up 16% from the previous year. This growth was primarily driven by an increase in memberships, price adjustments, and higher advertising revenue, partially offset by unfavorable changes in foreign exchange rates.
The company's operating income for 2025 amounted to $13.33 billion, marking a 28% increase from the prior year. This growth in operating income was attributed to the rise in revenues, outpacing the growth in cost of revenues, sales and marketing, and general and administrative expenses. As a result, the operating margin increased by approximately three percentage points compared to the previous year, reaching 29.5%.
Net income for the year ended December 31, 2025, also saw a significant increase, reaching $10.98 billion, up 26% from the prior year. This increase was primarily due to the rise in operating income, driven by the growth in revenues, partially offset by higher cost of revenues and an increase in the provision for income taxes.
The company's streaming revenues by region for 2025 were as follows: United States and Canada (UCAN): $19.96 billion, up 15% Europe, Middle East, and Africa (EMEA): $14.28 billion, up 17% Latin America (LATAM): $5.87 billion, up 11% Asia-Pacific (APAC): $5.34 billion, up 21%
Cost of revenues for the year ended December 31, 2025, amounted to $23.28 billion, representing an 11% increase from the previous year. This increase was primarily due to higher content amortization and other cost of revenues, particularly non-income tax assessments in Brazil.
Sales and marketing expenses for 2025 totaled $3.30 billion, reflecting a 13% increase from the prior year, driven by higher marketing expenses and personnel-related costs due to the growth in advertising sales headcount.
Technology and development expenses for 2025 amounted to $3.39 billion, up 16% from the previous year, primarily due to an increase in personnel-related costs.
General and administrative expenses for 2025 reached $1.89 billion, marking an 11% increase from the prior year, driven by higher personnel-related costs and third-party expenses, including legal fees and transaction-related costs.
Interest expense for 2025 totaled $776.51 million, representing an 8% increase from the prior year, primarily due to higher amortization of debt issuance costs, including those associated with financing arrangements related to a transaction.
The company reported a provision for income taxes of $1.74 billion for 2025, reflecting a 39% increase from the prior year, primarily due to a decrease in tax benefits associated with federal research and development tax credits.
In terms of liquidity and capital resources, Netflix's cash, cash equivalents, restricted cash, and short-term investments decreased by $518 million, while its short-term and long-term debt decreased by $1.12 billion in the year ended December 31, 2025.
As a result of these announcements, the company's shares have moved -0.06% on the market, and are now trading at a price of $88.00. If you want to know more, read the company's complete 10-K report here.
