Netflix had a strong quarter, and a big part of that was the gargantuan success of KPop Demon Hunters (pictured). Kidscreen combed through the streamer’s latest earnings report and broke down some of the most relevant highlights for the kids industry.

Q3 revenue: US$11.5 billion

The bottom line: Revenue was up 17% in Q3 2025, compared with the year prior.

Honing in on the hits: Some of Netflix’s most-viewed series in Q3 include some that skew to YA audiences, including new seasons of live-action series Wednesday (114 million) and My Life with the Walter Boys (36 million). And of course, KPop Demon Hunters, an animated film for kids and families, is now Netflix’s most popular film ever, with 325 million views.

A growing share: The streamer highlighted that it reached its highest share of TV time ever in the US and UK in Q3. Citing data from Nielsen (US) and Barb (UK), the streamer noted that its view share was up 15% in the US and 22% in the UK since Q4 2022. It had an 8.6% share in the US and 9.4% in the UK.

Hot headlines: The streamer also saved up a pair of announcements that it released all at once yesterday:

• The streamer teamed up with tabletop game maker Asmodee to develop scripted and unscripted projects based on its board game Catan. This is the latest game-to-screen adaptation for the steamer, which released a film last year based on the game Family Pack and is developing a Monopoly reality competition series.
• More interesting for the kids industry is that the streamer, which traditionally hasn’t been a major kids toys/consumer products player (except in the case of Stranger Things), secured an unprecedented deal with competing toy giants Hasbro and Mattel as co-master toy partners for KPop Demon Hunters.

Golden girls: Speaking of HUNTR/X, CEO Ted Sarandos had a lot of praise in the earnings call for KPop Demon Hunters’ success. He also highlighted the toy deal as a signal for how the streamer can build brands from its content.

“[KPop Demon Hunters is] obviously, a smash hit, but it’s also emblematic of exactly what we’re trying to do every day,” Sarandos said. “In fact, feature animation is an example of that, continuously improving the core [business]. We’ve been grinding away at original feature animation for a few years now. And KPop Demon Hunters is our most popular film ever. And again, it proves our ability to create breakthrough hits and move the culture.

“We’re here to entertain the world and we’re delivering tremendous value to our members every day. When you have a hit the size of KPop Demon Hunters, it stirs imagination of how big we could take this.”

Doubling down on AI: Artificial intelligence was cited as a focus for the company in its letter to shareholders. Starting in Q4, Netflix plans to use AI to test ad generation and placements, and the tech also has potential to improve Netflix’s recommendation and content discovery features. The company is beta testing a voice-activated, conversational search experience, and it’s using AI to localize promotional assets. Generative AI is also slowly making its way into more Netflix productions, with Happy Gilmore 2 using the tech to de-age characters.

An optimistic Q4 prediction: The company expects a 16% increase next quarter compared with Q4 2024, with revenue at US$11.9 billion. It’ll end its fiscal year with the final season of Stranger Things (which will be released starting in November), a perennially popular series among kids, tweens and teens.

More kids content on the way: In Q4, Netflix has a promising slate of kids programming that includes Sesame Street, the animated film In Your Dreams, new Dr. Seuss shows, a competition show with Mark Rober and a new season of Gabby’s Dollhouse.