As Netflix secures its Warner Bros. acquisition, the streaming giant has closed out has closed out 2025 with more than 325 million subscribers worldwide, up almost 8% from the previous year, and is ramping up content spending to $20 billion (A$30 billion) in 2026.

The company reported fourth-quarter revenue of $12.05 billion (A$18.1 billion), up 17.6% year-on-year, and net income of $2.41 billion (A$3.6 billion), translating to earnings of 56 cents per share. Full-year 2025 revenue reached $45.18 billion (A$67.8 billion), up 16%, with operating margins rising to 29.5%.

Netflix’s programming budget is set to grow roughly 10% over last year’s $18 billion (A$27 billion), with early 2026 seeing higher spending due to content launches and licensing agreements.

New deals include 20 series from Paramount Skydance, films from Universal Studios, and a global extension of its pay-1 deal with Sony Pictures. Video podcast partnerships with Spotify and iHeartMedia and over 200 live events, including NFL Christmas games, are also part of the content push.

Ad revenue continues to expand rapidly. In 2025, Netflix generated over $1.5 billion (A$2.25 billion) – more than 2.5 times the previous year – and forecasts it will double in 2026, contributing to revenue projected between $50.7 billion and $51.7 billion (A$76–77.5 billion), up 12–14%.

The company expects operating margins to reach 31.5% despite higher content and acquisition costs.

The announcements coincided with Netflix sweetening its $82.7 billion (A$124 billion) bid for Warner Bros. Discovery’s studios and HBO Max streaming service, switching to an all-cash offer amid competition from Paramount Skydance.

Netflix said the acquisition will broaden its content library, expand production capacity and create more personalised subscription options.

The company’s shares fell around 4.5% in after-hours trading following the earnings release, reflecting market caution over higher spending, the Warner Bros. acquisition, and the pace of subscriber growth.