Netflix (NFLX) Q1 2025 Earnings
How Did NFLX Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +12.62%.
Did NFLX Beat Earnings? Q1 2025 Results
Yes. Netflix reported Q1 2025 earnings of $6.61 a share on Apr 17, 2025, beating the $5.66 consensus estimate by 16.8%. Revenue was $10.5B against a $10.5B estimate.
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.
- 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
What Was Netflix's Outlook in Q1 2025?
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
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $10.5B | $9.4B | +12.5% |
| Gross Profit | $5.3B | $4.4B | +20.2% |
| Operating Income | $3.3B | $2.6B | +27.1% |
| Net Income | $2.9B | $2.3B | +23.9% |
NFLX Revenue by Segment
NFLX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.