An unexpected and painful $619 million tax expense from Brazil knocked the operating margin for Netflix ‘ September quarter, defying Wall Street’s upbeat guidance and hitting the stock, which fell more than 6%.

It was unusual. Asked on the streamer’s post- earnings Q&A webcast to please provide more color on what happened, CFO Spencer Neumann stressed “two really important takeaways that I want to leave you with. The first is that … no other tax looks or behaves like this in any other major country in which we operate. And, secondly, absent this expense, we would have exceeded our Q3 ‘25, operating income and operating margin forecast. And we don’t expect this matter to have a have a material impact on our results going forward.”

Netflix reported an operating margin of 28% for the t

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