Netflix ad revenue doubles to $1.5 billion in Q4 2025, seen doubling again in 2026

Netflix’s advertising business more than doubled its revenue to $1.5 billion between 2024 and 2025, as the streaming giant continues to scale its ad-supported offerings.

Speaking during the company’s latest earnings call, co-CEO Greg Peters said Netflix expects advertising revenue to “roughly double again” in 2026 to about $3 billion, underscoring the company’s growing confidence in the segment.

The surge comes amid rapid growth in Netflix’s ad-supported subscription tier. The company’s $7.99-per-month plan now reaches more than 94 million people globally each month as of May 2025, making it one of the largest ad-supported streaming audiences worldwide.

Netflix also plans to expand its advertising toolkit this year, including the launch of more AI-powered tools for marketers. These build on existing ad formats that allow brands to integrate their messaging with scenes from Netflix shows and films. Peters said the company will also roll out interactive video ads in the second quarter of this year.

The US-based streamer reported revenue of $12.05 billion for 2025, with its global subscriber base rising to 325 million, according to its fourth-quarter 2025 earnings report. Fourth-quarter operating income stood at $2.96 billion, translating into an operating margin of 24.5%. Net income for the quarter was $2.42 billion.

Separately, Netflix is in the process of pursuing Warner Bros. Discovery’s streaming and studios assets, according to reports. Earlier on Tuesday, the company reportedly revised its $83 billion bid for Warner Bros. Discovery to an all-cash offer, aligning with the structure of a competing bid from Paramount.