Netflix delivers solid 4th quarter, but stock sinks amid worries about slowing subscriber growth

Advertisement

Advertise with us

Netflix capped last year with another solid financial performance despite slowing subscriber growth that underscored the importance of its contested $72 billion bid to take over Warner Bros.’ movie studio and slot HBO Max into its video streaming line-up.

Read this article for free:


or

Already have an account? Log in here »

To continue reading, please subscribe:

Subscribe and receive a limited-edition Free Press branded hat or tote.

Digital Subscription

One year of digital access for only $205*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles

*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.

To continue reading, please subscribe:

Add Free Press access to your Brandon Sun subscription for only an additional

$1 for the first 4 weeks*

  • Enjoy unlimited reading on winnipegfreepress.com
  • Read the E-Edition, our digital replica newspaper
  • Access News Break, our award-winning app
  • Play interactive puzzles
Start now

*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.

Hey there, time traveller!
This article was published 20/01/2026 (232 days ago), so information in it may no longer be current.

Netflix capped last year with another solid financial performance despite slowing subscriber growth that underscored the importance of its contested $72 billion bid to take over Warner Bros.’ movie studio and slot HBO Max into its video streaming line-up.

The fourth-quarter results announced Tuesday eclipsed the projections of stock market analysts, but Netflix’s report also noted that the video service ended the year with more than 325 million worldwide subscribers, a figure indicating it has added about 23 million subscribers since 2024.

The 2025 subscriber increase marked a dramatic slowdown from the 41 million picked up during 2024, amplifying investor worries that Netflix’s growth has peaked since the 2022 introduction of a low-priced, advertising-supported version of its service that triggered a massive surge in subscribers.

FILE - A Netflix sign is displayed atop a building in Los Angeles, on Dec. 18, 2025, with the Hollywood sign in the distance. (AP Photo/Jae C. Hong, File)
FILE - A Netflix sign is displayed atop a building in Los Angeles, on Dec. 18, 2025, with the Hollywood sign in the distance. (AP Photo/Jae C. Hong, File)

Management also forecast a profit for the January-March period that was below analysts’ predictions and announced Netflix would stop buying back its own stock while trying to complete the Warner Bros’ deal. Even though its ad sales are expected to double, Netflix also projected its revenue growth would taper off from 16% in 2025 to 12% to 14% this year.

“Overall, this points to a challenging start to the year,” said Investing.com analyst Thomas Monteiro.

Netflix’s shares sank nearly 5% in extended trading, even though its profit and revenue for the past quarter were better than anticipated. The company earned $2.4 billion, or 56 cents per share, 29% increase from the same time in the previous year. Revenue rose 18% from the previous year to more than $12 billion.

The results almost seemed like a footnote next to the stakes involved in Netflix’s bidding war to buy Warner Bros. Discovery .

The battle took another turn earlier Tuesday when Netflix converted its original offer that included a stock component into an all-cash deal in hopes of simplifying the process and making it easier for Warner Bros. Discovery shareholders to resist Paramount’s overtures.

Although Warner Bros. has reiterated its commitment to getting the Netflix deal done, Paramount isn’t showing any signs of backing down and could still sweeten its counteroffer to turn up the heat another notch.

Netflix co-CEO Ted Sarandos seemed to send a warning shot across Paramount’s bow during a Tuesday conference call as he recalled fending off rivals such as Walmart and the now-vanquished Blockbuster video chain during the company’s days as a DVD-by-mail rental service. “We are no strangers to competition and we are now strangers to change,” Sarandos said.

Besides having to fend off Paramount, Netflix will also need to persuade U.S. regulators that adding HBO to a streaming service that has the most subscribers in the country won’t stifle competition and drive up prices that have already been rising in recent years.

The uncertainty has been reflected in Netflix’s stock price, which has fallen by20% since its agreement with Warner Bros. Discovery was unveiled last month. It’s a cloud likely to hang over Netflix through most of this year because the company doesn’t expect to complete its purchase until Warner Bros. Discovery spins off its cable TV business — a process expected to take six to nine months.

“We are energized as ever to achieve our mission to entertain the world,” Sarandos said.

Report Error Submit a Tip

More Stories

All that glitters … could work here

Editorial 4 minute read Preview

All that glitters … could work here

Editorial 4 minute read Yesterday at 2:00 AM CDT

Sometimes, it’s hard to even suggest a change, because it seems there is always a plethora of people ready to tell you that your idea just won’t work.

Read
Yesterday at 2:00 AM CDT

Grieving families, local leaders want review of Interlake intersection after teens die in crash

Chris Kitching 8 minute read Preview

Grieving families, local leaders want review of Interlake intersection after teens die in crash

Chris Kitching 8 minute read Updated: Yesterday at 6:34 PM CDT

A two-vehicle crash that killed four teenage friends in the Interlake Sunday night prompted outpourings of grief in several communities and calls for safety improvements at the intersection, which was also the site of a death in July.

Recent high school graduates Maya Borsa and Chloe Vermette, both 18, were identified by their families as victims of the collision at Highway 8 and Provincial Road 229, just west of Winnipeg Beach.

“(Chloe) was a very bubbly, loving personality. Always giving, always caring. Her friends meant the world to her,” said her mother, Veronique Vermette, who struggled to comprehend the tragedy when she went to the scene Monday. “We sat in the rain for hours, and it blew my mind that four lives were taken.”

The teens’ parents are waiting for RCMP to provide more information about the cause of the crash. Chloe, who graduated from Windsor Park Collegiate in Winnipeg in July, was driving one of the vehicles, her mother said.

Read
Updated: Yesterday at 6:34 PM CDT

‘Dynacare sucks:’ premier muses about bringing lab services back into public system after strike halted

Free Press staff 4 minute read Preview

‘Dynacare sucks:’ premier muses about bringing lab services back into public system after strike halted

Free Press staff 4 minute read Updated: 11:49 AM CDT

Manitoba’s premier said the province is looking at bringing diagnostic lab services back into the public system rather than continuing to contract Dynacare, declaring the for-profit company “sucks.”

“Maybe we’ll take over the whole system… we’re working on it, we’re looking at it, the situation is not great, this company’s making a mess — I think it’s pretty clear I’m not happy with them,” Premier Wab Kinew told CBC Radio Wednesday morning. “At the same time, nobody should be trying to use people’s health care as leverage.”

Kinew made the comments the day after the Manitoba Labour Board cut short a strike by 350 lab technicians and technologists employed by Dynacare, which administers blood, urine and other medical tests for patients in Winnipeg, Brandon and surrounding communities.

Dynacare, which is contracted by the provincial government, performs the majority of non-emergency blood and urine tests in the province.

Read
Updated: 11:49 AM CDT

Hydro working to restore service to pockets of River Heights

Malak Abas 6 minute read Preview

Hydro working to restore service to pockets of River Heights

Malak Abas 6 minute read Updated: Yesterday at 8:33 PM CDT

When Sheila Fenby’s basement began filling with water Sunday night, it felt like déjà vu.

Read
Updated: Yesterday at 8:33 PM CDT

Parts of River Heights hammered by storm

Melissa Martin 5 minute read Preview

Parts of River Heights hammered by storm

Melissa Martin 5 minute read Monday, Sep. 7, 2026

A powerful storm cut a swath of destruction through River Heights on Sunday, leaving much of the area without power.

Nobody was hurt in the storm.

By the time it subsided, parts of the quiet neighbourhood, especially Borebank and Lindsay streets between Grant and Taylor, had been ravaged: power lines downed, Manitoba Hydro poles toppled, trees splintered and crashed down on vehicles and homes.

In one case, a vehicle was flipped into a yard and sat under a partially downed tree. Shingles were stripped from roofs. Some residents described looking out during the storm and seeing power lines ablaze and the blue glow of electricity arcing over their backyards.

Read
Monday, Sep. 7, 2026

Winkler-based internet provider delivering high-speed service to 30 rural and First Nations Manitoba communities

Nicole Buffie 3 minute read Preview

Winkler-based internet provider delivering high-speed service to 30 rural and First Nations Manitoba communities

Nicole Buffie 3 minute read Yesterday at 7:12 PM CDT

Valley Fiber says it is undertaking one of its largest fibre optic projects and is building infrastructure that will deliver internet to 10,000 homes and businesses in rural and First Nations communities across Manitoba.

“These communities will now have access to the fastest internet network in Manitoba, and it will power their lives and their business,” Ryan Klassen, chief executive officer of the Winkler-based internet provider, said Tuesday from Fisher River Cree Nation.

The province has granted Valley Fiber use of two of its underused cables on the existing Manitoba Hydro fibre optic network for up to 20 years as part of the project, which will connect nearly 30 communities — including Buffalo Point, Hollow Water, Black River and Peguis First Nations, along with Fisher River and Fox Lake Cree Nations — to high-speed internet.

Construction should be finished by 2027.

Read
Yesterday at 7:12 PM CDT