12:33 PM EDT, 10/22/2025 (MT Newswires) -- Netflix ( NFLX ) is tracking toward the high end of its full-year revenue outlook following "solid" Q3 results, driven by member growth, pricing, and rising ad revenues, UBS Securities said.

The brokerage said in a Tuesday note that the company's strong Q4 content slate, including Monster, The Witcher, Frankenstein, Stranger Things, and NFL programming on Christmas, underpins guidance for 17% FXN revenue growth and 26% operating income growth.

The firm expects Netflix's ( NFLX ) ad revenue to more than double in 2025, with management confident that advertising can eventually account for about 10% of total revenue as targeting improves and new formats roll out.

Subscriber growth remains the main revenue driver, with UBS forecasting about 28 million additions next year and continued content investment of roughly $18 billion to $19 billion annually.

The company's management expects free cash flow to rise to about $9 billion in 2025, up from $6.9 billion last year, while buybacks are seen totaling roughly $9.5 billion over the next year. It plans to reinvest organically and through "selective M&A," steering clear of legacy media, according to the note.

UBS has a buy rating on the stock with a price target of $1,495.

Shares of Netflix ( NFLX ) were down more than 9.8% in recent trading.

Price: 1119.71, Change: -121.64, Percent Change: -9.80