Subscriber milestone marks return to membership disclosures
Netflix said Tuesday that it has reached 325 million global paid subscribers, a new all-time high for the streaming company. The update marks the first time Netflix has disclosed its subscriber count in a year, offering fresh insight into the scale of its global platform.
The milestone was released alongside fourth-quarter earnings that narrowly exceeded Wall Street expectations, reinforcing Netflix’s position as the largest subscription streaming service in the world.
Quarterly results edge past forecasts
For the quarter ended December 31, Netflix reported earnings per share of 56 cents, slightly above the 55 cents expected by analysts. Revenue reached $12.05 billion, topping estimates of $11.97 billion.
Net income rose to $2.42 billion, up from $1.87 billion a year earlier. Revenue increased 18 percent year over year, driven by subscriber growth, higher pricing and a sharp rise in advertising revenue.
Advertising emerges as a key growth driver
Netflix said ad revenue more than doubled in 2025, surpassing $1.5 billion. The company launched its ad-supported tier in late 2022 and has increasingly positioned it as a core part of its long-term strategy.
Looking ahead, Netflix expects 2026 revenue to land between $50.7 billion and $51.7 billion, supported by continued membership growth, pricing adjustments and what the company described as a projected doubling of ad revenue.
Competition intensifies across streaming and media
On the earnings call, co-CEO Ted Sarandos emphasized the competitive pressure across entertainment platforms, including traditional television, streaming rivals and social media video.
Despite the earnings beat, Netflix shares fell more than 4 percent in after-hours trading, reflecting investor concerns about growth expectations and heightened competition.
Warner Bros. Discovery deal looms large
The earnings report arrives as Netflix pushes forward with its proposed acquisition of Warner Bros. Discovery’s film studio and streaming assets, including HBO. The company recently amended its offer to an all-cash bid of $27.75 per share, valuing the assets at roughly $72 billion.
Netflix said it will pause share repurchases to help finance the deal and argued the acquisition would accelerate its content strategy by expanding its library, intellectual property and subscription options.
Co-CEO Greg Peters described Netflix’s ambitious internal growth goals as long-term aspirations rather than short-term forecasts, while Sarandos said the company is confident it can secure regulatory approval by framing the deal as pro-consumer and pro-innovation.
Netflix has begun the regulatory review process and says it plans to retain Warner Bros. and HBO teams, positioning the deal as an expansion of content creation rather than consolidation.
