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Mar 31, 2025
Netflix Q1 2025 Earnings Report
Netflix delivered strong revenue and earnings growth in Q1 2025, exceeding guidance on both fronts.
Key Takeaways
Netflix reported a solid Q1 2025 with 13% revenue growth and a 27% increase in operating income year-over-year, driven by robust subscription gains, content success, and the launch of its ad tech platform in the US.
Revenue reached $10.54B, up 13% YoY and slightly above guidance.
Net income surged to $2.89B, with diluted EPS at $6.61.
Strong content performance with hits like 'Adolescence' and 'Back in Action' breaking records.
Launched Netflix Ads Suite in the US and expanded live programming, including WWE RAW and upcoming NFL coverage.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Netflix expects continued momentum in Q2 2025 with higher revenue, improved margins, and growing ad revenue and live programming traction.
Positive Outlook
- Q2 revenue forecasted at $11.04B, reflecting 15% YoY growth.
- Operating margin expected to expand to 33%, a 6pp improvement YoY.
- Full-year revenue guidance maintained at $43.5B–$44.5B.
- Ad business scale expected to accelerate across all markets.
- Live programming such as NFL and Taylor vs. Serrano 3 to boost engagement.
Challenges Ahead
- UCAN revenue growth slowed to 9% due to partial price increase impact and no NFL ad revenue.
- Foreign exchange volatility remains a risk to guidance.
- Ad revenue still represents a small share of total income.
- High content spending required to sustain engagement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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