Netflix has reported a 16% revenue increase in the second quarter of 2025, reaching $11.079 billion. The streaming giant revealed that its operating margin expanded seven points year over year to 34% and its diluted earnings per share rose 47% to $7.19. On the back of this, the company raised its full-year 2025 revenue forecast to $44.8 billion - $45.2 billion (up from $43.5 billion - $44.5 billion). It also increased its free cash flow forecast for 2025 from $8 billion to $8.5 billion.
The higher forecast is based on the fact that user growth is expected to be healthy and ad sales are expected to increase, but it’s also based on the assumption that the US dollar will weaken, and this can’t be 100% guaranteed as it’s not within Netflix’s control. Additionally, while the operating margin increased year over year, it’s also predicted to be lower in the second half of the year due to higher content amortization and marketing costs for a larger content slate.
The company has also completed the rollout of its proprietary first-party ad tech platform, Netflix Ads Suite, across all of its ad markets and plans to double its ad revenue this year. It also recently integrated Yahoo’s Demand-Side Platform (DSP) into its programmatic offering; this allows advertisers to buy and manage ad inventory across publishers through one interface. Advertisers can optimize their campaigns in real time, targeting audiences based on their behavior, location, and other criteria using machine learning and first-party data.
As Netflix delivers "more value" it has been increasing subscription prices in line with expectations allowing it to reinvest more into its service. It believes the response to these increases has been in line with expectations based on member acquisition, churn, and plan mix.
Netflix saw several popular TV series air in the second quarter such as Squid Game season 3 (122 million views), Sirens (56 million views), Ginny & Georgia season 3 (53 million views), and popular films like Tyler Perry’s STRAW (109 million views) and Exterritorial (89 million views). The company also said that non-English films and series accounted for over one-third of all Netflix viewing in the first half of 2025.
The streaming giant is also pretty hopeful for the second half of the year with the launch of Wednesday season 2, the Stranger Things finale, Happy Gilmore 2, and live sports programming like Canelo-Crawford boxing and NFL Christmas Day games. With these shows and its new homepage, which is designed to boost user experience, Netflix will have more positive figures to share in upcoming quarters.
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