Netflix, Inc.

Netflix reported strong Q4 2025 results that exceeded Wall Street expectations, demonstrating continued growth in the competitive streaming landscape. The company reported quarterly revenue of $12.05 billion, up 17.6% year-over-year, and net income of $2.41 billion, up 29.4% from the same period in 2024. Earnings per share reached 56 cents, beating analyst estimates of 55 cents.

The streaming giant reached a significant milestone with 325 million global paid subscribers, up from 301.2 million a year prior. This subscriber growth was driven by membership increases, higher subscription pricing, and the continued expansion of Netflix's ad-supported tier. The company's ad revenue grew by more than 2½ times in 2025 to over $1.5 billion, demonstrating the success of Netflix's advertising strategy launched in late 2022.

Netflix expects 2026 overall revenue to range between $50.7 billion and $51.7 billion, driven by membership growth, pricing increases, and a projected rough doubling of ad revenue compared with 2025. The company plans to boost content spending by 10% to $20 billion in 2026, reflecting its commitment to maintaining a competitive content library and original programming pipeline.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company initially operated as a DVD-by-mail rental service, allowing customers to rent DVDs online and receive them by mail with prepaid return envelopes. This innovative model disrupted traditional video rental stores like Blockbuster, which eventually filed for bankruptcy due to Netflix's competitive advantage.

In 1999, Netflix introduced the subscription model, allowing customers to keep DVDs as long as they wanted for a monthly fee. This innovation eliminated late fees and provided predictable pricing for consumers. The company went public in 2002, providing capital for expansion and establishing its position as a publicly traded entertainment company.

A pivotal moment came in 2007 when Netflix introduced streaming media, allowing subscribers to watch content instantly over the internet. This marked the beginning of the streaming revolution that would transform the entertainment industry. The company invested heavily in technology and content licensing, gradually shifting focus from DVDs to streaming while maintaining both services during the transition period.

In 2013, Netflix revolutionized the entertainment industry by releasing its first original series, "House of Cards," followed by "Orange Is the New Black" and "Stranger Things." This strategic move transformed Netflix from a content distributor to a major content producer, giving the company exclusive content that couldn't be found on competing platforms. Throughout the 2010s, Netflix expanded globally, launching in over 190 countries and producing content in multiple languages to serve diverse international audiences.