Netflix

NFLX Q1 2025 Earnings

Reported Apr 17, 2025 at 4:04 PM ET · SEC Source

Q1 25 EPS

$6.61

BEAT +16.83%

Est. $5.66

Q1 25 Revenue

$10.54B

BEAT +0.35%

Est. $10.51B

vs S&P Since Q1 25

-45.4%

TRAILING MARKET

NFLX -8.5% vs S&P +36.9%

Market Reaction

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 beginn… Read more 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
24/7 Wall St

NFLX YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

NFLX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
24/7 Wall St

NFLX Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26