22 October 2025
If you are covering Netflix’s latest financial results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“Despite a tax dispute with the Brazilian authorities, Netflix’s results were a decent set of numbers and fairly business as usual. We have come to expect that from Netflix as it has matured into the leader in the entertainment world, so that one off cost in Brazil perhaps explains why the share price has taken a hit in after-hours trading. However, the underlying business remains exceptionally strong and without that one off tax issue, these results would have beaten expectations.
“Crucially, the strong results look as if they will continue too. Netflix has a good content slate running up to Christmas and into 2026, while the advertising model introduced recently is going well too. Furthermore, viral hits are giving the company multiple avenues for revenue, with K Pop Demon Hunters being the latest Netflix show to capture the hearts and minds of the world’s children. This is then allowing the company to release merchandise and put it into cinemas, giving people plenty of opportunity to engage with the content outside of their own home. It also goes to prove that strong intellectual property results in a successful entertainment conglomerate. Netflix is executing this perfectly and in a way that many of the legacy competitors are struggling to do.
“Netflix also continues to innovate too. Its gaming offering is evolving and it is exploring making your smartphone a controller for games on your TV. This will also provide more opportunities for viewer engagement in shows, such as live voting. It is also using AI to great effect in fine tuning its algorithm and identifying the shows that are taking off and ensuring the correct eyeballs see them. All in all, Netflix remains the number one operator in the TV and film world. And in a time of supposed AI bubbles and aggressive growth in tech names, Netflix provides a good amount of defensive growth as a well-established leader that is executing expertly.”
