Netflix Reports 16% Revenue Increase in Latest Earnings Release

A new earnings report has confirmed that Netflix outperformed Wall Street expectations in the second quarter of 2025. The streaming giant posted higher-than-anticipated revenue and earnings per share, raised its full-year revenue forecast, and reported strong growth in its ad-supported tier and cash flow.

Netflix’s revenue increase in latest earnings report explained

Revenue reached $11.08 billion, up 16–17.3% year-over-year, exceeding analyst estimates of $11.07 billion. Earnings per share came in at $7.19, above the $7.08 estimate and up from $4.88 in Q2 2024. Net income rose to $3.1 billion from $2.1 billion a year ago (via CNBC).

The company updated its full-year revenue forecast to a range of $44.8 billion to $45.2 billion, an increase from the previous $43.5 billion to $44.5 billion. Netflix attributed this revision to favorable foreign exchange rates and “healthy” member growth and ad sales. The company highlighted that revenue growth was driven by more members, increased subscription pricing, and expanding advertising income.

Free cash flow in Q2 reached $2.3 billion, marking a 91% increase year-over-year. Net cash from operating activities was $2.4 billion, up 84%. Netflix raised its full-year free cash flow guidance to $8–8.5 billion, up from a previous estimate of $8 billion.

Operating margin for the quarter was 34.1%, up nearly 3 percentage points from Q1 and nearly 7 points year-over-year. However, the company warned of a lower operating margin in the second half of 2025 due to increased content amortization and marketing expenses.

Netflix no longer provides quarterly subscriber updates, but noted strong engagement with its ad-supported tier. Ad revenue is projected to reach $3 billion in 2025. The company reported 94 million monthly active users for the ad-supported plan as of May, up from 70 million in November.

Looking ahead, Netflix forecasts Q3 2025 revenue of $11.53 billion and EPS of $6.87. Despite the positive report, shares dipped about 1% in after-hours trading.

Originally reported by Anubhav Chaudhry on SuperHeroHype.

Source: Comingsoon.net