Netflix posted an earnings beat Thursday, as income grew 16% through the second quarter of 2025.
The corporate up to date its full-year income forecast, noting that it expects income to be between $44.8 billion and $45.2 billion, up from a spread of $43.5 billion to $44.5 billion. Netflix’s increased forecast displays the weakening of the U.S. greenback in contrast with different currencies in addition to “wholesome” member development and advert gross sales, the corporate stated in a press release.
Notably, that is the second quarter that Netflix shouldn’t be releasing quarterly updates on subscription information.
“12 months-over-year income development was primarily a perform of extra members, increased subscription pricing and elevated advert income,” the corporate stated in a press release.
Here is how the corporate did, in contrast with estimates from analysts polled by LSEG:
- Earnings per share: $7.19 vs. $7.08, in accordance with LSEG
- Income: $11.08 billion vs. $11.07 billion, in accordance with LSEG
Web revenue for the interval was $3.1 billion, or $7.19 per share, up from $2.1 billion, or $4.88 per share, throughout the identical quarter a 12 months earlier.
Income within the second quarter jumped almost 16% 12 months over 12 months, reaching $11.08 billion.
The corporate reported internet money generated from working actions through the quarter was $2.4 billion, up greater than 84% from the prior-year interval. Free money movement additionally grew, reaching $2.3 billion, a 91% improve. Netflix elevated its full-year free cash-flow steering to between $8 billion and $8.5 billion, up from round $8 billion.
Netflix emphasised its second-quarter working margin of 34.1%, an enchancment of almost 3 share factors from the prior quarter and of almost 7 share factors from the year-earlier interval.
Nonetheless, it warned that “working margin within the second half of 2025 will probably be decrease than the primary half resulting from increased content material amortization and gross sales and advertising and marketing prices related to our bigger second half slate.”
That is probably why shares dipped round 1% in after-hours buying and selling. The subsequent two quarters function a strong calendar of occasions, exhibits and movies, such because the second season of “Wednesday,” the finale of “Stranger Issues,” “Completely happy Gilmore 2” and Guillermo del Toro’s “Frankenstein.”
