Netflix reported a strong second quarter, posting a 16% increase in revenue. The company, which provides streaming services to households worldwide, saw revenue reach $11.08 billion, exceeding Wall Street estimates of $11.07 billion. Netflix has revolutionised entertainment with its vast library of films, television programmes and original content. The company updated its full-year revenue forecast to between $44.8 billion and $45.2 billion, a notable increase from the previous range of $43.5 billion to $44.5 billion.
According to a company statement, this revised outlook reflects the weakening US dollar, robust member growth and rising ad revenue. Earnings per share reached $7.19, surpassing analysts’ expectations of $7.08. Net income for the quarter was $3.1 billion, or $7.19 per share, up from $2.1 billion, or $4.88 per share, in the same period last year. Netflix highlighted a significant increase in net cash generated from operating activities, which rose by more than 84% to $2.4 billion. Free cash flow also saw substantial growth, reaching $2.3 billion, a 91% increase from the previous year. The company has raised its full-year free cash-flow guidance to between $8 billion and $8.5 billion, up from around $8 billion.
Netflix emphasized its second-quarter operating margin of 34.1%, an improvement of nearly 3 percentage points from the prior quarter and nearly 7 percentage points from the year-earlier period. However, the company cautioned that the operating margin is expected to be lower in the second half of 2025 due to increased content amortisation and sales and marketing costs associated with its upcoming content releases.
Shares dipped around 1% in after-hours trading, following the announcement. Netflix has a robust calendar of events, shows and films planned for the next two quarters, including the second season of “Wednesday”, the finale of “Stranger Things”, “Happy Gilmore 2” and Guillermo del Toro’s “Frankenstein”.
