Los Angeles — Netflix reported a strong second-quarter performance on Thursday, posting $11.08 billion in revenue, a 16% year-over-year increase, surpassing Wall Street estimates.
The company also raised its full-year revenue forecast to a range of $44.8B–$45.2B, up from the earlier $43.5B–$44.5B guidance. The streaming giant cited “healthy member growth,” improved ad revenue, and favorable foreign exchange as contributing factors.
Earnings per share hit $7.19, beating analyst expectations of $7.08, according to LSEG. Net income rose to $3.1 billion, up from $2.1 billion during the same period last year.
Netflix reported:
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Operating margin: 34.1% (up 7 percentage points YoY)
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Free cash flow: $2.3B (up 91%)
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Cash from operations: $2.4B (up 84%)
However, the company warned that operating margins could decline in the second half of 2025 due to increased content and marketing expenses tied to its larger slate of releases.
Upcoming titles include "Wednesday" Season 2, the "Stranger Things" finale, "Happy Gilmore 2", and Guillermo del Toro’s "Frankenstein", potentially driving high viewer engagement but adding production costs.
Despite the beat, Netflix shares dipped around 1% in after-hours trading as investors reacted to the margin outlook.
