Netflix Revenue Grows 16% in New Earnings Report

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It’s been revealed that Netflix surpassed Wall Street predictions during the second quarter of 2025, according to a recent financial report. The streaming service saw increased revenue and earnings per share beyond what was projected, boosted its annual revenue projection, and reported substantial growth in its ad-supported segment and cash flow.

Netflix’s earnings report for quarter 2 explained

The company’s revenue surpassed expectations, hitting approximately $11.08 billion this quarter, marking a 16-17.3% increase compared to the same period last year. This figure outperformed analyst predictions of $11.07 billion. Earnings per share for the quarter were reported at $7.19, surpassing the anticipated $7.08 and rising significantly from $4.88 in Q2 2024. Net income saw a substantial jump, rising from $2.1 billion a year ago to $3.1 billion this time around, according to CNBC’s report.

The projected annual earnings of the company have been raised from $43.5 billion to $44.5 billion up to a new range of $44.8 billion to $45.2 billion. This adjustment is due to beneficial exchange rates, strong member growth, and successful ad sales, as stated by Netflix. They emphasized that this revenue surge was primarily caused by an increase in members, higher subscription fees, and growing advertising revenues.

In the second quarter, the company’s free cash flow soared to an impressive $2.3 billion, representing a substantial 91% rise compared to the same period last year. Moreover, net cash generated from regular business activities also saw a significant boost, rising by 84% to reach $2.4 billion. Notably, Netflix has upgraded its full-year free cash flow projection, now expecting it to range between $8–8.5 billion, which is $0.5 billion more than its initial forecast of $8 billion.

For this quarter, our operating margin stood at approximately 34.1%, representing an increase of almost 3 percentage points compared to Q1, and nearly 7 percentage points higher than last year. Yet, it’s worth noting that the company has forecasted a potential decrease in operating margin during the second half of 2025, primarily due to higher content amortization costs and marketing expenses.

Netflix has stopped sharing quarterly updates on subscriber numbers but highlighted high user engagement with its advertisement-supported service. It’s projected that this ad revenue will reach approximately $3 billion by 2025. As of May, the company reported a staggering 94 million active users for this plan, which was up from 70 million in November.

For the third quarter of 2025, Netflix anticipates a revenue of approximately $11.53 billion and earnings per share (EPS) of $6.87. Although this outlook seems promising, the company’s shares dropped by roughly 1% in post-market trading.

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2025-07-18 10:17