Netflix(US:NFLX)2025-10-22 20:02Financial Performance - Revenues for Q3 2025 reached $11,510,307, an increase of 17% compared to $9,824,703 in Q3 2024[96] - Operating income for Q3 2025 was $3,248,247, reflecting a 12% increase from $2,909,477 in Q3 2024[96] - Net income for Q3 2025 increased by $183,407 to $2,546,916, an 8% rise compared to $2,363,509 in Q3 2024[96] - Total revenues for the nine months ended September 30, 2025, were $33,132,274, a 15% increase from $28,754,453 in the same period of 2024[104] - Total revenues for Q3 2025 reached $11,510,307, a 17% increase compared to Q3 2024's $9,824,703[107] Revenue Growth Drivers - Membership revenue growth was driven by price increases and increased advertising revenue, contributing to a 17% revenue increase for Q3 2025[101] - The United States and Canada region generated $5,071,781 in revenues for Q3 2025, up 17% from $4,322,476 in Q3 2024[103] - The Asia-Pacific region saw the highest growth rate in Q3 2025, with revenues increasing by 21% to $1,368,561 compared to $1,127,869 in Q3 2024[103] - EMEA region revenues increased by 18% to $3,699,052 in Q3 2025, compared to $3,133,466 in Q3 2024[107] Cost and Expenses - The operating margin for Q3 2025 decreased to 28.2%, down from 29.6% in the prior year, primarily due to rising costs[98] - Cost of revenues for Q3 2025 was $5,119,884, representing a 20% increase from $6,164,250 in Q3 2024[110] - Sales and marketing expenses for Q3 2025 totaled $786,295, a 22% increase from $642,926 in Q3 2024[113] - Technology and development expenses for Q3 2025 were $853,584, up 16% from $735,063 in Q3 2024[116] - General and administrative expenses for Q3 2025 increased to $457,931, a 10% rise from $417,353 in Q3 2024[119] Tax and Interest - Provision for income taxes for Q3 2025 increased by $223 million (66%) to $562.5 million, with an effective tax rate rising to 18% from 13%[125] - Interest expense for Q3 2025 decreased by $9.5 million (5%) to $175.3 million compared to Q3 2024, while remaining at 2% of revenues[121] - Interest and other income for Q3 2025 increased by $58.2 million (268%) to $36.5 million, primarily due to reduced foreign exchange losses[123] Cash Flow and Debt - Cash, cash equivalents, and short-term investments decreased by $258.4 million (3%) to $9.33 billion as of September 30, 2025, primarily due to stock repurchases and debt repayment[126] - Total debt decreased by $1.12 billion (7%) to $14.46 billion, with $1.83 billion in debt repayments during the nine months ended September 30, 2025[127] - Net cash provided by operating activities for Q3 2025 increased by $504 million (22%) to $2.83 billion, driven by favorable changes in working capital and increased net income[134] - Net cash provided by operating activities for the nine months ended September 30, 2025 increased by $2,213 million, or 38%, compared to the same period in 2024, driven by a $1,720 million increase in net income[138] Foreign Currency Exposure - Currencies other than the U.S. dollar accounted for 56% of revenue and 32% of operating expenses for the nine months ended September 30, 2025, exposing the company to foreign currency risk[147] - The company enters into foreign exchange forward contracts to mitigate fluctuations in forecasted U.S. dollar-equivalent revenues, which may reduce but not entirely eliminate the effect of foreign currency exchange fluctuations[149] - An adverse change in exchange rates of 10% would have resulted in income before income taxes being approximately $54 million lower as of September 30, 2025[154]