Netflix reported quarterly revenue of $12.56 billion, a 13 percent increase compared with the same period last year, slightly below analyst expectations. Despite the revenue growth, the company’s shares fell sharply in early trading on Friday before partially recovering.

Netflix attributed the revenue rise to membership growth, price increases implemented last year, and an expanded advertising business. The company maintains its forecast for 12 percent revenue growth in the upcoming quarter and indicated that its full-year outlook remains consistent with prior guidance.

Co-CEO Greg Peters acknowledged that while total viewing hours are significant, there is not a straightforward relationship between hours watched and profitability, noting that "not all hours are created equal." Netflix emphasized the importance of live events in driving subscriber acquisition, highlighting that such events accounted for six of the top 10 days for new member signups over the past five years. The company is actively pursuing additional broadcasting rights for NFL and Major League Baseball games, as well as WWE and the Women’s World Cup.

Co-CEO Ted Sarandos addressed concerns about viewer engagement during second seasons of shows, countering reports suggesting a decline. He stated there has been no "material change" in engagement levels from first to second seasons, and noted that the drop-off in viewership for second seasons has slightly improved compared to the previous year. Netflix intends to maintain its current release strategies accordingly.

In a separate disclosure, Netflix revealed in a Securities and Exchange Commission filing that it completed an acquisition of InterPositive in March 2026 for approximately $587 million in cash. This transaction was previously reported in the company’s first-quarter 10-Q filing in May and was accounted for as a business combination.