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Jun 30, 2025
Netflix Q2 2025 Earnings Report
Netflix reported strong Q2 2025 results with revenue and operating income slightly above guidance due to member growth, ad sales, and favorable F/X.
Key Takeaways
Netflix delivered a strong Q2 2025, exceeding revenue and operating income guidance, driven by healthy subscriber growth, increased ad revenue, and positive foreign exchange effects.
Revenue grew to $11.08B, up 16% year over year
Operating income reached $3.77B with a 34% margin
Net income rose to $3.13B with diluted EPS at $7.19
Member growth and ad revenue contributed to better-than-expected results
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Netflix expects Q3 2025 revenue growth of 17% and operating margin of 31%, with strong member, pricing, and ad revenue growth but higher second-half content and marketing spend.
Positive Outlook
- Q3 2025 revenue growth expected at 17%
- Operating margin projected at 31%
- Full-year revenue forecast raised to $44.8-$45.2B
- Operating margin target raised to 29.5% for FY25
- Continued strong member growth and ad revenue momentum
Challenges Ahead
- Operating margin expected to decline in 2H25 due to higher content amortization
- Higher sales and marketing costs anticipated for larger second-half slate
- Revenue growth partly dependent on F/X favorability
- Increased content spending could pressure free cash flow
Historical Earnings Impact
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Avg. Return Before/After Earnings
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