BUSINESS

Inside The Surprise Brazilian Tax That Rattled Netflix Earnings

Netflix's September-quarter results were upended by a $619 million Brazilian tax charge, sending the stock down more than 6%. The CIDE levy—a 10% tax on certain outbound payments—followed an August Brazil Supreme Court ruling that broadened its scope to include service payments, prompting Netflix to record the expense. The company reported a 28% operating margin; without the charge, it said the margin would have topped its 31.5% guidance. CFO Spencer Neumann called the tax unique among major markets and not streaming-specific, and said Netflix does not expect a material ongoing impact. About 20% of the expense relates to 2025.

Reviewed by JQJO team

#netflix #brazil #tax #earnings #finance