Netflix reported fourth-quarter revenue of $10.2bn, up 19% when ignoring currency moves, exceeding analysts’ estimates of $10.1bn. They also saw a record 19mn paid net additions compared to 13mn last year.
Operating income rose 52% to $2.3bn, with operating margin improving from 17% to 22%, both ahead of expectations driven by higher revenue.
Free cash flow fell 13% to $1.4bn, with net debt ending 2024 at $6.1bn.
Full year revenue for 2025 is expected to grow 14-17% when ignoring currency moves to $43.5-$44.5bn, $0.5bn higher than prior guidance.
The shares rose 14.7% in after-hours trading.
Our view
HL view to follow.
Netflix key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.