Netflix's Growth Story Opened a New Chapter in Q4, Topping 325 Million Subs

Netflix topped Wall Street estimates and surpassed 325 million subscribers in Q4 2025, but investors are spooked by its massive $82.7 billion all-cash bid for Warner Bros. Discovery's assets, causing its stock to dip despite strong performance.

• The ad engine roars: Advertising is becoming a core pillar of Netflix's business, generating over $1.5 billion in 2025—a more than 2.5x increase from the prior year. The company expects that figure to roughly double again in 2026, signaling a major payoff from its ad-supported tier.

• Hits drive the numbers: The streamer's content strategy continues to deliver, with hits like the final season of Stranger Things driving a 9% increase in viewing of its original programming in the latter half of 2025. This dominance was on full display in December, when Netflix captured a record 9% of all U.S. television viewing time, according to Nielsen.

• The $82.7 billion question: Still, the main event is the blockbuster bid for WBD's studio and streaming assets. In a letter to shareholders, Netflix said the move would allow it to accelerate its business strategy, but it also launches the company into a high-stakes gamble involving enormous debt, integration risks, and a tense bidding war with rival suitor Paramount Skydance.

Netflix is forecasting revenue growth of 12% to 14% for 2026 and plans to increase its content amortization by 10%. An analysis from Variety suggests that puts Netflix’s total content budget for the year at around $20 billion, showing the company is betting that spending big on content is the best way to navigate its risky acquisition strategy.

• Also on our radar: As it pursues the massive Warner Bros. deal, Netflix is also making other moves. The company is trying to calm Hollywood fears by promising to maintain a 45-day theatrical window for WB movies.