Netflix Reports Over $1.5 Billion in Ad Revenue for 2025, Subscriber Growth Accelerates
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: CNBC
- Ad Revenue Growth: Netflix's advertising revenue exceeded $1.5 billion in 2025, accounting for about 3% of total annual revenue, with expectations to double this year, indicating early success of its advertising strategy, although analysts noted growth was slower than anticipated.
- Significant User Growth: By the end of 2025, Netflix reached 325 million global subscribers, an increase of approximately 23 million from the end of 2024, reflecting the effectiveness of its advertising-supported plan and password-sharing crackdown efforts.
- Overall Revenue Increase: Netflix's total revenue jumped nearly 16% in 2025, with net income rising 26%, demonstrating positive progress in diversifying revenue streams, despite ad revenue disclosures falling short of Wall Street expectations.
- Intensifying Market Competition: As advertising becomes crucial for profitability in the streaming industry, Netflix, despite its late entry, is working to narrow the revenue gap between its ad-supported and ad-free subscription plans, showcasing potential for future growth.
Analyst Views on NFLX
Wall Street analysts forecast NFLX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NFLX is 129.47 USD with a low forecast of 92.00 USD and a high forecast of 152.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
38 Analyst Rating
27 Buy
9 Hold
2 Sell
Moderate Buy
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
Current: 85.700
Low
92.00
Averages
129.47
High
152.50
About NFLX
Netflix, Inc. is a provider of entertainment services. The Company acquires, licenses and produces content, including original programming. It provides paid memberships in over 190 countries offering television (TV) series, films and games across a variety of genres and languages. It allows members to play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time. The Company offers members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, TV set-top boxes and mobile devices. It is engaged in scaling its streaming service, such as introducing games and advertising on its service, as well as offering live programming. It is developing technology and utilizing third-party cloud computing, technology and other services. The Company is also engaged in scaling its own studio operations to produce original content.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
