Netflix is poised to report a standout fourth quarter on January 20, with forecasts pointing to approximately $12 billion in revenue and $0.55 in earnings per share. A surge in viewership of the final season of Stranger Things drove the reactivation of roughly 3 million dormant accounts during the December holiday window, marking a 25% decline in net churn compared with the prior quarter. Engagement metrics climbed sharply, with total viewing hours up 18% year-over-year, underscoring the franchise’s outsized impact on subscriber retention and upsell opportunities.

Investors will scrutinize Netflix’s nascent advertising tier after management reported a 30% sequential increase in ad-supported subscriptions during Q3. Advertising revenue remains in the low-single digits as a percentage of total billing, but Netflix has signaled plans to double its ad inventory by mid-2025. Equally critical is progress on the proposed Warner Bros. Discovery deal: management commentary on financing structure and regulatory timelines could swing sentiment, especially as competing all-cash offers from Paramount Skydance loom.

While U.S. subscriber growth has cooled—net additions in North America fell to 0.5 million in Q3 from 1 million a year earlier—international markets continue to accelerate. Latin America and EMEA regions contributed a combined 5 million new accounts in the past quarter, up 40% year-over-year, driven by local content investments and bundled mobile partnerships. The company’s forecast anticipates modest acceleration in ARPU overseas, offsetting domestic plateau and supporting revenue growth near 15% year-on-year in fiscal 2025.