Netflix, Inc. (NFLX) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, and welcome to the Netflix Q3 2025 earnings interview. I'm Spencer Wong, VP of Finance, IR, and Corporate Development. Joining me today are co-CEOs Ted Sarandos and Greg Peters, and CFO Spence Newman. As a reminder, we will be making forward-looking statements, and actual results may vary. We'll now take questions submitted by the analyst community, and we will start with our results and outlook. Our first question comes from Ben Swinburne of Morgan Stanley. who asks, as you begin to wrap up 2025 and look to 2026, can you talk broadly about the health of the business and how you would frame the opportunity ahead? We think the business is very healthy. We feel good about our progress on our key initiatives. We've got also a lot of opportunity ahead of us, but we've got a lot of work we need to do to accomplish and fully realize those opportunities. So what's working? We had a good Q3. We had revenue in line with expectations. Our operating income would have exceeded our forecast absent the Brazilian tax matter. We're also seeing good progress against our key priorities. So engagement remains healthy. We achieved record share of TV time in Q3 in both the US and the UK. We recorded our best ad sales quarter ever. We are now on track to more than double ad revenue this year. We're continuing to build out both live offerings and games. These are the emerging capabilities. On the live side, we saw Canelo Crawford. That was the most viewed men's championship fight this century. We recently announced the ability to play Netflix games on TV with friends and family playing together at home using just that TV and the phone as the game controller. So this progress in these areas is indicative of how we think we can best compete and grow the business over the long...