Netflix Records Strong Growth in Revenues and Profits, Raises 2025 Outlook

American company Netflix announced its financial results for the second quarter of the current year on Thursday, July 17, exceeding analysts' expectations with a significant increase in revenues and profits.

According to the company's official statement, earnings per share were $7.19, compared to LSEG's forecast of $7.08, while revenues reached $11.08 billion, surpassing expectations of $11.07 billion. Revenues also saw a 16% annual growth, driven by an increase in the number of subscribers, higher subscription prices, and increased advertising revenue, as reported by the company.

Netflix also stated that its net income jumped to $3.1 billion, or $7.19 per share, compared to $2.1 billion, or $4.88 per share, in the second quarter of the previous year. The company also adjusted its annual revenue forecast, expecting it to range between $44.8 billion and $45.2 billion, higher than the previous range of $43.5 billion to $44.5 billion.

The company attributed this adjustment to the weakness of the US dollar against other currencies, along with "good" growth in subscriber base and advertising revenue.

On the other hand, Netflix showed significant improvement in liquidity indicators, with operating cash flow reaching $2.4 billion, an 84% year-on-year increase, while free cash flow surged to $2.3 billion, growing by 91%. The company also raised its full-year free cash flow outlook to between $8 billion and $8.5 billion, compared to the previous $8 billion.

In terms of profitability, the company's operating margin rose to 34.1% in the second quarter, showing an improvement of 3 percentage points from the previous quarter, and 7 percentage points compared to the same period last year. However, Netflix warned that "the operating margin in the second half of 2025 will be lower than the first half, due to increased content and marketing costs associated with launching bigger projects during that period."

It is worth noting that this is the second consecutive quarter in which Netflix does not release quarterly subscriber data, as part of its shift towards more comprehensive financial performance indicators.