Netflix shares fell 6% following its third-quarter earnings, despite a rise in revenue and net income.
The streamer reported adjusted earnings per share of US$5.87, missing both Wall Street and its own guidance.
However, revenue was in line with the company’s forecast, growing by 17% to US$11.51 billion.
Netflix also reported a rise in net income by nearly 8% to US$2.5 billion; however, this was below the expected US$2.98 billion.
Its operating margin of 28% was also short of its forecast.
The company attributes the miss in estimates to a dispute with Brazilian tax authorities.
Netflix said that it expects revenue growth of 17% for Q4 of 2025, driven by growth in members, pricing and ad revenue.
This would lead to around US$45.1 billion in revenue for the full year 2025. The company also released new guidance for an operating margin of 29% for 2025, down from the previous forecast of 30% due to the Brazilian tax matter.
The biggest achievement for the streamer last quarter was the animated musical film KPop Demon Hunters that sustained its fandom through to the current quarter and continues to be a driver of viewership and box office sales for Netflix.
Ahead of its earnings presentation, Netflix announced that it would be re-releasing K-pop Demon Hunters in theatres.
