Netflix posted second-quarter revenue of $11.08 billion, up 16% year-on-year, surpassing Wall Street Analysts’ projection of $11.06 billion.
According to its Q2 report released on Thursday, earnings per share rose to $7.19, exceeding Netflix’s earlier forecast of $7.08. Net income increased by 45% year-on-year to $3.1 billion, while operating margin rose to 34.1%, reflecting an increase of approximately 3% from the previous quarter and 7% year-on-year.
Net cash generated from operating activities also grew significantly, rising over 84% from the previous year, to $2.4 billion during the quarter. Free cash flow increased by 91% to $2.3 billion.
Following the strong performance, Netflix raised its full-year 2025 revenue forecast to between $44.8 billion and $45.2 billion, up from its prior range of $43.5 billion to $44.5 billion.
“The majority of the increase in our revenue forecast reflects the recent depreciation of the US dollar vs. most other currencies, with the balance attributable to continued business momentum driven by solid member growth and ad sales,” the company stated.
However, Netflix warned that operating margin in the second half of 2025 is expected to decline due to higher content amortisation, as well as increased sales, and marketing costs tied to upcoming releases like the second season of “Wednesday,” the finale of “Stranger Things,” and other scheduled content.
