I saw that the EPS is estimated to be 0.545. This is a significant decrease from the past 2 quarters, which were around 0.7 EPS. Q3 they missed earnings because of the Brazil tax, and EPS was still close to 0.7… So, what’s the deal? Thank you!
Why are Q4 2025 estimates so low for $NFLX?
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Posted by Kooky_Resource6348
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It looks like Q4 is the smallest quarter EPS every year and it looks like cost of revenue jumps up significantly Q4 every year. I have no idea why that is but it’s somewhere to look.
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So let’s say they spend $1B on a show (just making up numbers). They don’t recognize the full $1B on the income statement. They recognize the show’s expenses over a period of time.
Since a lot of the show is watched when it first comes out, they accelerate the expense timeline. Q4 is time of biggest releases, so they hit the income statement with a lot of that expense.
Cause the brazil tax could happen again.
And cause nflx wont raise prices like before.