The profit per share was $5.87, while expectations were $6.97 according to the analysis company LSEG.
The turnover landed at $11.51 billion – an increase of 17 percent – which was in line with the expected, reports CNBC.
In a press release, Netflix states that a cost related to an ongoing dispute with Brazilian tax authorities is the reason for reporting results that were not in line with expectations.
"Without this cost, we would have exceeded our forecast for the operating margin for the third quarter of 2025. We do not expect this issue to have a major impact on future results," Netflix announces in a statement.
In after-hours trading on the New York Stock Exchange, the share fell by 7 percent.
Both the first and second quarter of this year exceeded Netflix's market expectations. The increase in turnover during the first half of the year was due to higher prices, increased advertising revenue and more subscribers, according to the company.
However, from this year, Netflix will no longer report the development of the number of subscribers. The strategy is instead, according to the company, to focus on key figures such as turnover and profit.
