With second-quarter revenue of $11.08 billion, Netflix exceeded Wall Street analysts’ forecast of $11.06 billion, a 16% year-over-year increase.
Netflix’s Q2 report, available to BrandSpur digital news platform, which was made public on Thursday, showed that earnings per share increased to $7.19, surpassing the company’s initial prediction of $7.08. The operating margin increased to 34.1%, up about 3% from the previous quarter and 7% year over year, while net income increased by 45% year over year to $3.1 billion.
Additionally, net cash from operating activities increased dramatically, reaching $2.4 billion for the quarter, an increase of more than 84% from the prior year. Free cash flow reached $2.3 billion, a 91% increase. The company increased its full-year 2025 revenue forecast from its previous range of $43.5 billion to $44.5 billion to between $44.8 billion and $45.2 billion in response to the impressive performance.
According to Netflix: “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.”
Netflix cautioned, however, that higher content amortisation, along with higher sales and marketing expenses associated with upcoming releases such as the second season of Wednesday, the finale of Stranger Things, and other scheduled content, are likely to cause an operating margin decline in the second half of 2025.
