Netflix Shares Fall After Earnings Miss Linked to Brazilian Tax Dispute
Oct 21, 2025
Netflix shares dropped by as much as 7% after the company missed its third-quarter earnings estimates. The shortfall was mainly due to an unexpected $619 million expense related to an ongoing tax dispute with Brazilian authorities.
Despite the earnings miss, Netflix reported record revenue of $11.51 billion for the quarter, driven by growing subscriber numbers, increased advertising revenue, and recent price increases.
The company's operating income was below expectations, and its operating margins did not meet its previous guidance due to the tax expense. However, Netflix offered a forecast for the rest of the year that was slightly higher than Wall Street's projections.
Why did Netflix's shares fall?
Netflix shares fell because the company missed its third-quarter earnings estimates due to a large tax expense from a dispute with Brazilian tax authorities.
Did Netflix still make more money overall?
Yes, Netflix reported record revenue for the quarter despite the earnings miss.
What caused the earnings shortfall?
The shortfall was mainly caused by a $619 million tax expense related to a dispute with Brazilian authorities.
What does this mean for Netflix's outlook?
Netflix's forecast for the rest of the year is slightly ahead of what Wall Street expected.
Sources
Netflix shares drop after streamer misses earnings estimates, citing Brazilian t...
CNBC
CNBC
Shares of Netflix plummeted 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.
Netflix revenue climbs but EPS falls short; shares slide
Proactive Investors
Proactive Investors
Netflix Inc (NASDAQ:NFLX, ETR:NFC) reported third-quarter earnings that slightly missed Wall Street expectations for per-share profit, even as revenue and cash flow continued to grow, underscoring the streaming giant's ongoing expansion amid rising content costs. For the quarter ended September 30,...
Netflix shares fall after company reports profit miss
Market Watch
Market Watch
The company's earnings came in below expectations, with the stage set for big gains with the company's ad business in the fourth quarter.
Netflix stock drops 6% after earnings miss due to Brazilian tax fight
Business Insider
Business Insider
Netflix generated record revenue last quarter, but it incurred an approximately $619 million expense due to a tax dispute. Shares fell 6% after hours as its operating income came in below expectations.
Netflix Shares Sell Off After Q3 Earnings Miss, Warning About Brazilian Tax Disp...
Netflix fell short of Wall Street analysts' earnings expectations in the third quarter and said a dispute with Brazilian tax authorities kept operating margins from meeting its guidance. Revenue came in on target during the June-to-September period, reaching $11.51 billion. Earnings per share of $5.
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Benzinga
Benzinga
Netflix, Inc. (NASDAQ:NFLX) will release earnings results for the third quarter, after the closing bell on Tuesday, Oct. 21.
Netflix misses earnings targets after tax dispute in Brazil
Reuters
Reuters
Netflix missed Wall Street third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities and it offered a forecast a touch ahead of Wall Street projections for the rest of the year.
Netflix Revenue, Profit Grow as Ad Business Accelerates
WSJ
WSJ
The dominant streamer reported higher revenue and profit for the third quarter, driven by membership growth, increased ad revenue and price hikes, continuing a strong run for the dominant streamer.
Netflix shares drop after streamer misses earnings estimates - citing Brazilian...
CNBC Television
CNBC Television
CNBC's Julia Boorstin reports on Netflix earnings.
Netflix Shares Down 5% After Q3 Earnings: Everything You Need to Know
24/7 Wall Street
24/7 Wall Street
Netflix (Nasdaq: NFLX) reported Q3 earnings after the bell today.
Netflix misses earnings estimates, citing Brazilian tax dispute
CNBC Television
CNBC Television
Netflix 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.
Netflix falls on Q3 results: Here's what you need to know
CNBC Television
CNBC Television
Mark Mahaney, Evercore ISI head of internet research, joins ‘Closing Bell Overtime' to discuss Netflix as the streaming giant posted a third-quarter earnings miss after the closing bell Tuesday.
Netflix's ad experience is 'unexciting'; it looks like TV ads, says Lightshed Pa...
CNBC Television
CNBC Television
Rich Greenfield, Lightshed Partners co-founder, joins ‘Closing Bell: Overtime' to discuss Netflix after the streaming giant posted a third-quarter earnings miss.
'Fast Money' traders talk Netflix as streamer misses Wall Street's earnings esti...
CNBC Television
CNBC Television
CNBC's 'Fast Money' team discusses Netflix as shares of the streaming giant fell after it posted a third-quarter earnings miss.
Netflix (NFLX) Q3 Earnings and Revenues Lag Estimates
Zacks Investment Research
Zacks Investment Research
Netflix (NFLX) came out with quarterly earnings of $5.87 per share, missing the Zacks Consensus Estimate of $6.89 per share. This compares to earnings of $5.4 per share a year ago.
Markets Reflect Flattish - Q3 Earnings from NFLX, TXN, MAT
Zacks Investment Research
Zacks Investment Research
While the S&P 500 and Nasdaq were modestly on either side of zero, the Dow finished the session up +0.47% and the small-cap Russell 2000 was -0.49%.
Netflix shares slide on rare earnings miss — snapping six-quarter profit streak
New York Post
New York Post
“The truth is that the company failed to deliver the kind of growth we've grown used to over the past couple of years,” Investing.com analyst Thomas Monteiro said.
Dow Jones Index Rallies To Record Highs; Netflix Slides On Earnings Miss
Investors Business Daily
Investors Business Daily
The Dow Jones index rallied more than 200 points Tuesday, hitting a new high. Netflix stock tumbled on earnings after the close.
Inside The Surprise Brazilian Tax That Rattled Netflix Earnings
An unexpected and painful $619 million tax expense from Brazil knocked the operating margin for Netflix' September quarter, defying Wall Street's upbeat guidance and hitting the stock, which fell more than 6%. It was unusual.
CNBC Daily Open: Netflix shows how it's done despite earnings miss
CNBC
CNBC
China says countries should take a "proactive role" in stabilizing their rare earths supplies. Netflix's third-quarter earnings missed expectations because of an ongoing dispute with Brazilian tax authorities.
CNBC Daily Open: Netflix holds its own even as other media companies rethink the...
CNBC
CNBC
India is close to a deal that could see the U.S. slashing its tariffs on the country. Netflix's third-quarter earnings missed expectations because of a tax dispute.
Netflix Stock Drops After Earnings Miss. Company Blames Brazil Tax Dispute.
Barrons
Barrons
Netflix reports third-quarter adjusted earnings of $5.87 a share, missing Wall Street estimates of $6.96 a share.
Netflix slumps as revenue forecast disappoints lofty investor expectations
Reuters
Reuters
Netflix shares fell 7% in premarket trading on Wednesday after the streaming giant's fourth-quarter revenue outlook failed to impress investors despite a strong line-up of shows, including the final season of "Stranger Things".
Netflix blames $600m tax dispute with Brazil for disappointing earnings
The Guardian
The Guardian
Results broke firm's six-quarter streak of posting profit that eclipsed analysts' projections, despite ads business growth
Why Netflix stock is down over 6% in pre market trading after Q3 results
Invezz
Invezz
Netflix Inc. missed Wall Street's third-quarter profit projections due to an unexpected tax bill in Brazil, but the firm provided a somewhat better outlook for the remainder of the year. The streaming giant's shares fell 5.6% to $1,171.24 in after-hours trading on Tuesday as investors responded to t...
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Proactive Investors
Proactive Investors
US stocks are expected to start on the back foot on Wednesday, led by Netflix, after its earnings disappointed overnight. Nasdaq 100 futures were down 0.3%, with those for the Dow Jones and S&P 500 both down less than 0.1%.
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Benzinga
Benzinga
U.S. stock futures were slightly higher this morning, with the Dow futures gaining around 0.1% on Wednesday.
A $619 Million Surprise Hit Netflix's Margins
Seeking Alpha
Seeking Alpha
Netflix, Inc. faced a one-time $619 million Brazilian tax expense, dropping Q3 operating margin to 28% and causing a 7% stock decline. Despite the margin hit, NFLX delivered strong 17.2% revenue growth, record engagement, and robust free cash flow, with fundamentals remaining solid. Q4 guidance proj...
Netflix stock: streaming giant dubs AI a boon, not a bane
Invezz
Invezz
Netflix Inc (NASDAQ: NFLX) is inching down this morning after a Brazilian tax dispute made it come in shy of earnings estimates for its third financial quarter. However, not all was gloomy in the company's earnings release.
Dow Falls 100 Points; Netflix Shares Tumble On Downbeat Earnings
Benzinga
Benzinga
Netflix Inc (NASDAQ:NFLX) shares fell more than 8% on Wednesday after the company reported downbeat third-quarter financial results.
Netflix Tumbles After Q3 Earnings Miss. Is This Your Chance to Buy?
24/7 Wall Street
24/7 Wall Street
Netflix (NFLX) Q3 revenue is up 17%, meeting guidance, but EPS missed due to $360 million Brazil tax charge. Ad revenue hit a record and is still on track to double in 2025; a possible hint at 2026 doubling as well.
Netflix Slides On Brazil Tax Hit — But Growth Story Remains Intact
Benzinga
Benzinga
Netflix Inc (NASDAQ:NFLX) saw shares dip more than 8% during early trading on Wednesday after its third-quarter earnings report on Tuesday. Still, the earnings miss stemmed from a $619 million one-time tax settlement with Brazil, an issue dating back to 2022.
Netflix misses Q3 earnings targets due to tax dispute in Brazil
Fast Company
Fast Company
Netflix missed Wall Street's third-quarter earnings targets because of an unexpected expense from a dispute with Brazilian tax authorities, while it offered a forecast a touch ahead of Wall Street projections for the rest of the year.
Netflix Stock Eyes Worst Day Since 2022 After Earnings Blunder
Schaeffers Research
Schaeffers Research
Magnificent Seven stock Netflix Inc (NASDAQ:NFLX) is down 9.8% to trade at $1,120.59 this morning, after the company posted adjusted third-quarter earnings of $5.87 per share on $11.5 billion in revenue, the former of which missed estimates.
Netflix Earnings Fall Flat Amid Tax Dispute
Bloomberg Markets and Finance
Bloomberg Markets and Finance
Netflix shares dropped Tuesday after the streaming giant released lackluster third quarter earnings. Bloomberg's Felix Gillette says that things are going well for Netflix within programming, despite the financial impacts of a costly tax dispute in Brazil.
Netflix: Warner Bros. Clues, Brazil Tax, & What Truly Matters
Seeking Alpha
Seeking Alpha
Netflix is a "Buy" after Q3 sell-off, as non-recurring Brazil tax and FX issues overshadow strong fundamentals and upgraded guidance. NFLX raised full-year guidance, reported record engagement, and continues to expand its content and advertising strategies for sustained long-term growth. Valuation i...
Netflix Stock Selloff A 'Buying Opportunity': Analysts See Continued Outperforma...
Benzinga
Benzinga
Netflix Inc. (NASDAQ: NFLX) analysts say they don't think the company's third-quarter results, which missed estimates, warrant too much concern. Analysts highlight the company's advertising growth as the key catalyst for its future success.
NFLX Q3 Earnings Miss on Brazilian Tax Dispute, Posts Record Ad Sales
Zacks Investment Research
Zacks Investment Research
Netflix's Q3 earnings miss on Brazil tax but deliver record ad sales, highest-ever engagement. KPop Demon Hunters becomes the most-watched film as AI strategy accelerates.
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Investopedia
Investopedia
Even the "KPop Demon Hunters" were no match for the jump scares in Netflix's (NFLX) latest earnings.
Why Netflix Stock Was Slumping Today
The Motley Fool
The Motley Fool
Netflix matched top-line estimates with 17% growth in the third quarter. The company had a large one-time expense related to a Brazilian tax dispute.
Netflix earnings: analysts see advertising, margins as bright spots in mixed rep...
Proactive Investors
Proactive Investors
Netflix Inc (NASDAQ:NFLX, ETR:NFC)'s third quarter earnings report prompted a mixed but optimistic response from Wall Street analysts, who believe the company's long-term outlook remains intact despite near-term uncertainty. While results and guidance were broadly in line with expectations, analysts...
Pricing & Ad Momentum Lift Netflix's Q4 View: Is Upside Sustainable?
Zacks Investment Research
Zacks Investment Research
NFLX's ad surge and strategic price hikes fuel double-digit growth, setting up a strong Q4 and full-year outlook.
Netflix earnings: What investors need to know about the streaming giant's Q3 mis...
Yahoo Finance
Yahoo Finance
Streaming giant Netflix ( missed third quarter earnings estimates — gains of $5.87 per share vs. estimates of $6.94 — while revenue came up just shy of Wall Street expectations — $11.51 billion vs.
Netflix sinks on earnings: Here's what you need to know
CNBC Television
CNBC Television
The Investment Committee debate streaming giant Netflix as it falls after posting "underwhelming" earnings.
Netflix Has to Knock It Out of the Park: Wedbush's Reese
Bloomberg Technology
Bloomberg Technology
Wedbush Analyst Alicia Reese says Netflix's tax hit in Brazil was only one of the disappointments in the streaming giant's earnings. She joins “Bloomberg Tech” and explains why Netflix has to “knock it out of the park” with each earnings report.
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