Netflix (NFLX) earnings Q2 2025

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Netflix announced strong earnings results on Thursday, with a 16% increase in revenue for the second quarter of 2025.

The company revised its full-year revenue forecast upwards, projecting a range of $44.8 billion to $45.2 billion compared to the previous range of $43.5 billion to $44.5 billion. Netflix attributed the higher forecast to favorable currency exchange rates, robust member growth, and increased ad revenue.

Of note, this marks the second consecutive quarter that Netflix has opted not to release quarterly subscription data updates.

“The year-over-year revenue growth was driven by a larger member base, higher subscription fees, and enhanced advertising revenue,” stated the company.

Here’s a look at how Netflix performed in comparison to analyst estimates from LSEG:

Earnings per share: $7.19 vs. $7.08, as per LSEG

Revenue: $11.08 billion vs. $11.07 billion, according to LSEG

During the period, Netflix reported a net income of $3.1 billion, or $7.19 per share, representing a significant increase from the previous year’s $2.1 billion, or $4.88 per share.

Second-quarter revenue surged by nearly 16% year over year, totaling $11.08 billion.

The company disclosed that net cash from operating activities for the quarter reached $2.4 billion, marking an impressive 84% surge from the prior-year period. Additionally, free cash flow rose to $2.3 billion, reflecting a 91% increase. Netflix raised its full-year free cash flow guidance to a range of $8 billion to $8.5 billion, up from the previous estimate.

Netflix highlighted its second-quarter operating margin of 34.1%, which improved by almost 3 percentage points from the previous quarter and nearly 7 percentage points from the corresponding period last year.

However, the company cautioned that the operating margin is expected to decrease in the second half of 2025 due to higher content amortization and increased sales and marketing expenses related to the extensive content slate planned for the latter part of the year.

As a result, Netflix’s shares experienced a slight decline of approximately 1% in after-hours trading. The upcoming quarters are packed with highly anticipated events, series, and movies such as the second season of “Wednesday,” the finale of “Stranger Things,” “Happy Gilmore 2,” and Guillermo del Toro’s “Frankenstein.”

This article is based on breaking news. Stay tuned for further updates.