Netflix Q4: Impressive profit didn't save the stock from decline

Despite strong financial results in Q4 2025, Netflix faced a paradoxical market reaction. After announcing a net profit of $2.42 billion and expanding to 325 million global subscribers, the company’s stock price fell more than 4% in the after-hours trading session. This contrasting scenario reflects growing investor concerns about the future challenges facing the streaming giant.

Q4 2025: Results that exceeded analyst forecasts

According to NS3.AI data, the fourth quarter delivered exceptional results for the company. In addition to a record number of subscribers, Netflix was able to significantly increase revenue from its emerging advertising business. These achievements demonstrate that the company continues to find ways to monetize its massive user base even amid competitive pressures.

Why the market is concerned: rising costs and intense competition

However, the Q4 financial results failed to reassure worried investors. The main sources of concern lie in the company’s cost structure: constantly increasing investments in original content are becoming more and more expensive. At the same time, Netflix faced intensified competitive pressure — not only from traditional TV networks that launched their own streaming platforms but also from social media platforms that are increasingly aggressively capturing audience media time.

An ambitious expansion attempt: proposal to acquire Warner Bros. Discovery

Adding to the uncertainty is another decision by Netflix: an announcement of a $72 billion cash offer to acquire Warner Bros. Discovery assets. Such a large-scale deal, along with regulatory uncertainties and potential antitrust issues, creates an additional layer of uncertainty for investors who are already concerned about the company’s business condition.

Thus, Q4 2025 for Netflix became a period of paradoxes: excellent Q4 financial indicators were met with serious market concerns about the company’s long-term sustainability.