Netflix reported fourth-quarter 2025 earnings Tuesday that beat analyst expectations on profit and revenue, but the company’s subscriber growth dramatically slowed, adding about 23 million customers last year—far fewer than the 41 million it added in 2024 and a sign that growth in the world’s largest streaming service may be plateauing.
The slowdown raises questions about the future of Netflix’s growth model and highlights why the company is aggressively pursuing its $72 billion acquisition of Warner Bros. Discovery’s film studio and HBO Max streaming service, a deal that has become the subject of competing bids from Paramount Global.
Netflix earned $2.4 billion in the fourth quarter, or 56 cents per share, a 29% increase from the same period a year earlier. Revenue rose 18% year-over-year to more than $12 billion.
Subscriber Growth Stalls
Netflix ended 2025 with more than 325 million worldwide subscribers. The company added 23 million subscribers last year, a sharp slowdown from the 41 million it added during 2024. The deceleration follows Netflix’s 2022 introduction of a low-priced, advertising-supported version of its streaming service, which initially triggered a surge in subscriber growth.
Management’s forecast for the January-through-March period fell short of analyst expectations, and Netflix announced it would cease stock buybacks as it attempts to complete the Warner Bros. acquisition. The company also projected its revenue growth would slow from 16% in 2025 to between 12% and 14% this year, though Netflix said ad sales are expected to double.
Investing.com analyst Thomas Monteiro captured the market’s reaction to the mixed results. “Overall, this points to a challenging start to the year,” Monteiro said.
Netflix shares sank nearly 5% in extended trading Tuesday, despite the company’s profit and revenue exceeding analyst predictions. The stock has fallen 20% since Netflix announced its agreement with Warner Bros. Discovery last month.
Competing for Warner Bros. Discovery
To strengthen its competitive position, Netflix converted its original bid for Warner Bros. Discovery—which included a stock component—into an all-cash offer in hopes of simplifying the acquisition process. Paramount Global is also pursuing the company, and the outcome remains uncertain. Netflix co-CEO Ted Sarandos acknowledged the competitive landscape during a Tuesday conference call. “We are no strangers to competition,” Sarandos said.
Netflix will need to persuade U.S. regulators that acquiring HBO will not stifle competition or drive up prices, which have already been rising in recent years. The company does not expect to complete the purchase until Warner Bros. Discovery spins off its cable television business, a process the company said could take six to nine months.