Netflix shares fell by more than 7% in pre-market trading on Wednesday following the release of disappointing earnings results, which were below analysts” expectations. The streaming giant cited increased expenses associated with a legal dispute involving Brazilian tax authorities as a contributing factor to the decline.
In the first nine months of 2025, Netflix reported a net income of $8.562 billion, reflecting a 25.1% increase compared to the same period in the previous year. However, the company”s operating margin stood at 28%, which is lower than the initially projected 31.5%. This reduction was primarily attributed to unexpected legal costs arising from issues in Brazil.
Looking ahead, Netflix anticipates revenues of approximately $11.960 billion for the fourth quarter of 2025, marking a 16.7% increase compared to the same quarter last year.
