Netflix (NFLX) Q4 2025 Earnings Call Transcript

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• Japanese consumers watch 50-67% less TV than US consumers

  80% confidence

• Netflix will add 2+ live operation centers in 2026 in UK and Asia

  80% confidence

• Q2 2024 operating margin expanded 5 percentage points year-over-year

  80% confidence

• Netflix targets 2026 operating margin of 31.5%, up 2 percentage points including 0.5 point M&A expense headwind

  80% confidence

• There are 500+ million smart TV households globally that are non-Netflix members

  80% confidence

• M&A expenses will create half a percentage point drag on operating margin in 2026

  80% confidence

• Netflix forecasts 2026 revenue of $51 billion, representing 14% year-over-year growth

  80% confidence

• Netflix ad revenue was 2.5x higher in 2025 compared to prior year

  80% confidence

• Netflix content cash-to-expense ratio is 1.1x

  80% confidence

• Netflix operating profit grew approximately 30% in 2025

  80% confidence

• The Warner Bros. deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth

  80% confidence

• Post-launch party pack games (Boggle, Pictionary, LEGO) achieved approximately 10% reach into eligible members

  80% confidence

• Netflix retention is among the best in the industry

  80% confidence

• Netflix expects content amortization to increase 10% year-over-year in 2026

  80% confidence

• Netflix primary quality metric reached all-time high in 2025

  80% confidence

• Q2 2024 revenue growth was 17% reported

  80% confidence

• Q4 2025 churn improved year-over-year

  80% confidence

• The Warner Bros. acquisition represents a tremendous, very achievable opportunity

  80% confidence

• Netflix tested vertical video for approximately 6 months

  80% confidence

• Modular interactive video ads with dynamic templates completed testing in late 2025 with global rollout in 2026

  80% confidence

• Warner Bros. global box office exceeds $4 billion

  80% confidence

• Netflix will maintain 45-day theatrical window post-Warner Bros. acquisition

  80% confidence

• Netflix will spend $17 billion on content cash in 2026, growing slower than revenue

  80% confidence

• Sign-up flow optimization generated material revenue wins in Q2 2024

  80% confidence

• Branded originals viewing grew 9% year-over-year in H2 2025 and 7% in H1 2025, representing approximately 50% of total viewing

  80% confidence

• Q2 2024 had strong acquisition and healthy retention across all regions

  80% confidence

• YouTube surpassed BBC monthly average audience in the UK according to Barb

  80% confidence

• Netflix expects approximately $6 billion in free cash flow for 2026

  80% confidence

• Total Netflix view hours grew 2% year-over-year in 2025, adding 1.5 billion hours, accelerating from 1% in prior year

  80% confidence

• Approximately one-third of Netflix members have access to TV-based games through client upgrades

  80% confidence