Netflix Q2 Revenue Rises 16% to $11.1 Billion, Company Ups Forecast

While many media companies are selling assets and slashing costs, Netflix continues to outperform expectations. In Q2 2025, the global streaming giant reported impressive growth across all key financial metrics, underscoring its resilience in a competitive market.

Q2 Revenue Soars to $11.1 Billion

Netflix reported a 16% year-over-year increase in revenue, reaching $11.1 billion for the second quarter of 2025. The company also posted earnings of $7.19 per share, significantly surpassing investor expectations. As a result of this strong performance, Netflix has raised its full-year revenue and operating margin forecasts.

Steady Content Lineup Drives Engagement

Historically, the second quarter is a slow period for Netflix in terms of new user additions. However, the company maintained strong viewer engagement with the release of popular content, including the third season of Ginny & Georgia and the final season of Squid Game. These shows ranked among the most-watched series of the year.

Additionally, Netflix benefited from favorable foreign exchange rates, thanks to its massive international footprint—over two-thirds of Netflix’s user base is located outside the U.S.

Market Cap Tops $500 Billion

Despite a 2% dip in after-hours trading, Netflix’s stock has nearly doubled over the past year. Its current market capitalization exceeds $500 billion, making it more valuable than Disney, Comcast, and Warner Bros. Discovery combined.

Shifting Focus to Traditional Financial Metrics

Netflix has pivoted away from emphasizing quarterly subscriber numbers and is now urging investors to track traditional performance indicators like sales and profit margins. This shift reflects the company’s maturity and confidence in its long-term growth strategy.

The 16% revenue growth was attributed to a combination of increased subscription prices, growing membership, and rising ad revenue.

Full-Year Forecast Raised

Looking ahead, Netflix now anticipates full-year revenue of up to $45.2 billion and an operating margin of 29.5%. Net income is expected to surpass $10 billion for the first time, driven by robust programming and positive currency trends.

The second half of 2025 promises more high-profile releases, including new seasons of Stranger Things, Wednesday, and the debut of Happy Gilmore 2, further solidifying Netflix’s content dominance.

Competition Grows, But Netflix Holds Strong

Although Netflix’s share of total U.S. TV viewership hasn’t expanded over the past year, average viewing time has remained consistent. The streaming leader is facing intensifying competition, but it believes it can gain market share as rivals like Warner Bros. Discovery and Comcast restructure.

CFO Spencer Neumann indicated that Netflix prefers organic growth over acquisitions but sees opportunities to boost engagement in H2 2025.

U.S. Growth Slows, Ad Revenue Rises

According to market research firm Antenna, subscriber growth in the U.S. has plateaued, particularly after the initial boost from the company’s crackdown on password sharing. However, Netflix’s domestic revenue grew by 15% in Q2, driven by recent price hikes.

To attract budget-conscious viewers, Netflix is investing in its ad-supported plans, now available in over a dozen markets. The company expects its advertising revenue to double this year.