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Shares of Netflix fell as much as 7% after the company posted a third-quarter earnings miss after the closing bell Tuesday.
The streamer cited an ongoing dispute with Brazilian tax authorities for the weaker-than-estimated results.
“Operating margin of 28% was below our guidance of 31.5% due to an expense related to an ongoing dispute with Brazilian tax authorities that was not in our forecast,” the company said in a statement. “Absent this expense, we would have exceeded our Q3’25 operating margin forecast. We don’t expect this matter to have a material impact on future results.”
Revenue for the quarter rose 17%, in-line with analyst expectations. Netflix said this was driven by membership growth, pricing adjustments and increased ad revenue.
Here’s how the company did, compared with estimates from analysts polled by LSEG:
- Earnings per share: $5.87 vs. $6.97, according to LSEG
- Revenue: $11.51 billion vs. $11.51 billion, according to LSEG
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