Netflix is set to report fourth-quarter results on Tuesday after the market close, capping a week heavy with high-profile earnings. Analysts are expecting the company to highlight the success of the final season of “Stranger Things,” which drove a 12% increase in hours streamed during December compared with the prior quarter, as well as viewership gains from two Christmas Day NFL games that debuted on the service. With global paid membership now exceeding 300 million, investors will scrutinize Netflix’s guidance for subscriber additions in Q1, where consensus forecasts call for approximately 6 million net new members. Advertising revenue, while still a small portion of total sales, is projected to grow by more than 50% year-over-year, reflecting the rollout of new ad tiers in key markets during 2025.

Co-CEO Ted Sarandos has repeatedly underlined Netflix’s strategic shift toward theatrical releases in the wake of its proposed acquisition of Warner Bros. Discovery. In a recent statement to The New York Times, Sarandos committed to maintaining a minimum 45-day theatrical window for all future Warner Bros. films, citing the importance of preserving billions of dollars in box-office revenue. He emphasized that Netflix will operate WBD’s theatrical distribution business largely unchanged, aiming to ‘win opening weekend’ while balancing the streaming giant’s core at-home model. Investors will watch closely for commentary on deal financing, with Netflix reportedly evaluating an all-cash bid totaling upwards of $100 billion and weighing the impact on free cash flow, which reached $11 billion in the trailing twelve months.