Companies /Communication Services

Netflix Inc

NASDAQ: NFLX Entertainment
$79.84
▼ $1.62 (−1.99%) today
Markets closed · 9:08am ET

Q1 2025 Earnings

Reported Apr 17, 2025, 4:04pm ET · SEC source
$6.61
Beat +16.83%
EPS · est. $5.66
$10.5B
Beat +0.35%
Revenue · est. $10.5B
+9.9%
Beating market
NFLX vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+2%+4%Apr 17Apr 17report 4:04pm ETearnings−0.2%+3.1%
0+2%+4%Apr 17Apr 17earnings−0.2%+3.1%
NFLX +3.1%S&P 500 −0.2%
0+2%+4%Apr 17Apr 17report 4:04pm ETearnings+0.1%+3.1%
0+2%+4%Apr 17Apr 17earnings+0.1%+3.1%
NFLX +3.1%NASDAQ +0.1%
0+5%+10%Apr 16Apr 25report 4:04pm ETearnings+4.3%+10.2%
0+5%+10%Apr 16Apr 25earnings+4.3%+10.2%
NFLX +10.2%S&P 500 +4.3%
0+5%+10%Apr 16Apr 25report 4:04pm ETearnings+6.2%+10.2%
0+5%+10%Apr 16Apr 25earnings+6.2%+10.2%
NFLX +10.2%NASDAQ +6.2%
+1.19%
Day of report
+1.53%
Next session
+13.21%
One week
+22.51%
30 days

S&P 500 over the same 30 days: +12.62%.

Did NFLX Beat Earnings? Q1 2025 Results

Netflix opened 2025 with a standout quarter, posting first-quarter earnings per share of $6.61, a 16.83% beat against the $5.66 consensus estimate, as the streaming giant demonstrated that its dual focus on membership growth and advertising is beginning to compound meaningfully. Revenue climbed 12.5% year over year to $10.54 billion, edging past the $10.51 billion Wall Street expected, while operating income surged 27% to $3.35 billion, lifting operating margin to 31.7% from 28.1% a year ago. The outperformance was driven in large part by stronger-than-forecast subscription and advertising revenue, along with favorable expense timing, a combination that helped free cash flow rise to $2.66 billion for the quarter. The company also launched its in-house Netflix Ads Suite in the US, with management projecting ad revenue to roughly double in 2025. Looking ahead, Netflix guided Q2 revenue to $11.04 billion and reaffirmed full-year guidance of $43.5 billion to $44.5 billion, noting that recent US dollar weakness has the company tracking above the midpoint of that range.

Key Takeaways
  • Membership growth and higher pricing drove 13% revenue increase (16% F/X neutral)
  • Strong content slate with Adolescence (124M views) and Back in Action (146M views) breaking into all-time most popular lists
  • Operating margin expanded to 31.7% from 28.1% YoY due to revenue outperformance and expense timing
  • APAC region led growth at 23% YoY (26% F/X neutral)
  • Ad revenue growing, though still very small relative to subscription revenue

Forward Guidance & Outlook

Netflix reaffirmed full-year 2025 revenue guidance of $43.5B-$44.5B with a 29% operating margin target based on F/X rates as of January 1, 2025, and approximately $8B in free cash flow. Management noted that at current F/X rates (with recent US dollar weakness), the company is tracking above the midpoint of the revenue guidance range. For Q2 2025, Netflix expects revenue of approximately $11.035B (15% reported growth, 17% F/X neutral), operating margin of 33.3%, and diluted EPS of $7.03. The company expects UCAN revenue growth to reaccelerate in Q2 from the full-quarter benefit of recent price changes. Netflix expects its ad revenue to roughly double in 2025 and anticipates reaching sufficient ads membership scale in all ads countries this year.

NFLX YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$3.0B$6.0B$9.0B$9.4B$10.5BRevenue$4.4B$5.3BGross Profit$2.6B$3.3BOperating Income$2.3B$2.9BNet Income
$0$3.0B$6.0B$9.0BRevenueGross ProfitOperating IncomeNet Income

NFLX Revenue by Segment

UCAN (United States and Canada)$4.6B+9.0%
EMEA (Europe, Middle East, and Africa)$3.4B+15.0%
LATAM
APAC
LATAM (Latin America)$1.3B+8.0%
APAC (Asia-Pacific)$1.3B+23.0%

NFLX Revenue by Geography

North America$4.6B+9.0%
EMEA$3.4B+15.0%
Latin America$1.3B+8.0%
Asia Pacific$1.3B+23.0%

Figures from SEC filings and company reports. Not investment advice.