Netflix Profit Surges 26% to $11B, Boosts Warner Bros Bid to $83B Amid Rival Takeover Fight

Netflix reported a 26.05% rise in net profit for 2025, reaching $10.981 billion, driven by higher subscription numbers and increased advertising revenue. The streaming giant exceeded all its financial targets for the year, with annual revenues climbing 16% to $45.183 billion compared to 2024. Its subscriber base expanded beyond 325 million, while the operating margin improved to 29.5% from 26.7% the previous year. Operating results jumped from $10.418 billion in 2024 to $13.327 billion in 2025.

Fourth-quarter revenues grew 18% year-over-year, bolstered by a 9% uptick in viewing of original content during the second half of the year. Key drivers included the final season of *Stranger Things*, which garnered 120 million views, and season five of *Emily in Paris* with 41 million. Guillermo del Toro's *Frankenstein*, released in October, added 102 million views.

Looking ahead, Netflix anticipates steady growth in the next fiscal year, projecting revenues between $50.7 billion and $51.7 billion—a potential increase of up to 14%. The company expects advertising earnings to nearly double, with an operating margin of 31.5%, according to its statement.

These strong results come amid ongoing efforts to acquire Warner Bros. Discovery. Netflix sweetened its offer on Tuesday, committing to pay $83 billion in cash for the company, excluding debt—shifting from a prior mix of cash and stock. The move drew criticism and prompted rival Paramount to launch a hostile takeover bid worth $108.4 billion on December 8.