Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter

Netflix reported a strong finish to its fiscal year Tuesday, with revenue climbing 18% in the fourth quarter to just over $12 billion compared with a year ago.

The streaming giant’s profits during the same period reached $2.4 billion, or 56 cents a share, up from $1.87 billion, or 43 cents a share, a year earlier, the company reported.

The results were slightly ahead of Wall Street estimates and driven by growth in the company’s advertising business, higher prices and increases in paid memberships, which surpassed the 325-million mark, Netflix said in a letter to shareholders.

Netflix said total engagement on its platform, meaning the amount of time its users spent watching content, rose 2% in the second half of the year.

The company got a big boost in the quarter from the final season of its hit series “Stranger Things,” among other popular shows, documentaries and movies, including Guillermo del Toro’s “Frankenstein” and “Wake Up Dead Man: A Knives Out Mystery.”

Netflix said “KPop Demon Hunters” broke records as its most-watched movie with 482 million views in the last half of 2025. Users wanted to sing along with “KPop Demon Hunters Lyric Videos,” which scored 32 million views.

The streamer’s top series was the second season of “Wednesday,” which pulled in 124 million views. The first season of the series also popped with 47 million more.

For the year, the Los Gatos-based company reported revenue of $45.2 billion, up 16% from 2024.

The latest earnings report follows news earlier Tuesday that Netflix modified its offer to buy Warner Bros. Discovery, making it an all-cash bid. The companies agreed on the deal, valued at $82.7 billion, in December.

The agreement between the most successful streaming platform and the storied movie studio behind “Casablanca,” Harry Potter and “Batman” has its share of supporters and detractors. Netflix shares have been on a decline since the December announcement.

“Investors will ponder whether Netflix becoming HBO faster than HBO became Netflix serves their interest,” said Emarketer senior analyst Ross Benes. “So far, markets have not responded kindly to the acquisition.”

Rival bidder Paramount has made clear it will continue its hostile takeover attempt for Warner Bros., despite some setbacks. It has given the company’s investors a Jan. 21 deadline to tender their shares. It remains to be seen whether Paramount opts to extend that deadline.

Warner Bros. has rejected Paramount’s overtures multiple times in recent months, while expressing its preference for its deal with Netflix.

The results were released after markets closed. Netflix shares ended the day at $87.05, down 1% on Tuesday.

Times staff writer Meg James contributed to this report.