Core Engagement and Performance - Netflix achieved its highest-ever viewing share in the U.S. at 8.6% and in the U.K. at 9.4%, indicating strong performance in key markets [1] - Since the end of 2022, viewing share has increased by 15% in the U.S. and 22% in the U.K., suggesting sustained competitive gains [2] Importance of Engagement Metrics - Engagement metrics are crucial for Netflix's monetization, enhancing pricing power, reducing churn risk, and improving advertising effectiveness [3] - Higher engagement allows Netflix to raise prices selectively without significant subscriber losses [3] Advertising Business Growth - Netflix's advertising business had its strongest quarter in Q3 2025, with record ad sales and a doubling of U.S. upfront commitments [5] - Upfront commitments will contribute to revenue starting late 2025 and into 2026, improving forecast reliability [6] Structural Drivers of Advertising Growth - Netflix offers a unique combination of global scale, engaged audiences, and advanced buying tools for advertisers [7] - The company has transitioned from an experimental phase to a more established execution phase in its advertising business [7] Future Advertising Roadmap - Netflix plans to enhance targeting and media planning tools globally and introduce more interactive ad formats [8] - Management expects advertising margins to expand as the advertising stack matures, despite potential near-term lag compared to subscription margins [9] Financial Guidance - For Q4 2025, Netflix anticipates revenue growth of 17% and an operating margin of 23.9%, with full-year revenue projected at $45.1 billion and a 29% operating margin [10][11] - The slight revision in revenue expectations is linked to tax issues rather than operational weaknesses [11] Upcoming Earnings Report Focus - The upcoming earnings report will focus on confirming margin normalization post-Brazil, continued advertising momentum, and durable engagement gains [12]