Netflix’s revenue climbed 16% to $11.08 billion and its profits surged 45.6% to $3.13 billion in its second quarter of 2025, primarily driven by more subscribers, higher pricing and increased ad revenue.
The streamer also raised its 2025 revenue outlook to $44.8 billion to $45.2 billion, up from previous guidance of $43.5 billion to $44.5 billion, reflecting healthy subscriber growth and ad sales and the weakening of the U.S. dollar compared to other currencies. The update represents growth of 15% to 16% year-over-year.
In May, Netflix revealed that its ad tier, which accounts for over 50% of new-sign ups where its available, surpassed 94 million monthly active users. The company raised the price on the ad tier for the first time in January to $7.99 per month.
The company continues to expect that it will roughly double ads revenue
in 2025 as it scales its ad-supported offering. Netflix’s in-house ad-tech platform has rolled out in all 12 markets where the ad tier is available, with early results in-line with the company’s expectations.
“We believe our ad tech platform is foundational to our long-term ads
strategy and, over time, will enable us to offer better measurement, enhanced targeting, innovative ad formats and expanded programmatic capabilities,” the company said in its quarterly shareholder letter.
TheWrap exclusively reported on Thursday that Netflix was regionalizing its ad leadership as part of a strategic shift, with global ad measurement vice president Julie DeTraglia exiting the company. Netflix is aiming for roughly $9 billion in global ad sales by 2030 as it aspires to reach a $1 trillion market capitalization, The Wall Street Journal previously reported.
Here are the quarter’s results:
Net income: $3.13 billion, compared to $2.15 billion a year ago.
Earnings per share: $7.19 per share, compared to $7.06 per share expected from analysts estimates compiled by Yahoo Finance.
Revenue: $11.08 billion, up 15.9% year over year, compared to $11.04 billion expected from analysts estimates compiled by Yahoo Finance.
Operating income: $3.8 billion, up 45% year over year from $2.6 billion a year ago.
Netflix no longer breaks out its total subscriber and average revenue-per-paid member figures on a quarterly basis as turned its focus to revenue, operating margins and engagement. It last reported a total of 301.63 million subscribers globally during its fourth quarter of 2024.
However, the company previously said it would continue to provide a breakout of total revenue by region, as well as the impact of foreign exchange changes, and announce major subscriber milestones as it crosses them. In the second quarter, it noted that member growth was ahead of its internal forecast, but said it occurred late in the quarter, limiting the impact on revenue.
All four of Netflix’s regions reported revenue growth, with the U.S. and Canada climbing 15% to $4.93 billion, Europe, Middle East and Africa rising 18% to $3.54 billion, Latin America up 9% and Asia-Pacific increasing 24% to $1.31 billion each.
Netflix shares were flat in after-hours trading on Thursday, but are up 96% in the past year and 43.6% year to date. The stock closed at $1,274.17 per share, off its 52-week high of $1,341.15 per share.
The latest quarterly results come on the heels of Netflix scoring 120 Emmy nominations, led by “Adolescence,” “Monsters: The Lyle and Erik Menendez Story” and “Black Mirror.” It also recently struck a first-of-its-kind distribution deal with TF1, which will see the French broadcaster’s programming air on the streamer in the country starting in summer 2026.
“We actually consistently hear from our members that they want more they want more variety, more breadth of content. So the fundamental purpose for this TF1 partnership is all about that goal of expanding our entertainment offering,” co-CEO Greg Peters told analysts. “We want to provide more content, more variety, more quality. So just as you’ve seen us do with licensing and production, this is just another mechanism to expand that offering. And in this case, it’s specifically about highly relevant local for local content in a country that has strong demand for that local content. This is an accelerated way to satisfy that need.”
He added that Netflix and TF1 “know each other really well” and wanted to pick the leading local programmer in a big territory.
“We wanted to be highly aligned in terms of the deal and the shape of the partnership and the values that we thought we could generate mutually by working together for our customers,” Peters added. “We both look at this as an opportunity to learn, to figure out how do we scale the local content that TF1 is producing to more customers in France. So we’re looking forward to seeing what consumers think. You never really know until you get out there and get the real reactions, and then obviously, we’ll factor that into our plans going forward.”
When asked about industry consolidation, chief financial officer Spencer Neumann said Netflix believes it is likely to happen within legacy media, but don’t expect it to materially change the competitive landscape.
“We’ve historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook,” he added when asked about M&A. “We’ve been pretty clear in the past that we also have no interest in owning legacy media networks, so that also kind of reduces the funnel for us. But, in general, we believe we can and will be choosy. We’ve got a great business. We’re predominantly focused on growing that organically, investing aggressively and responsibly into that growth and returning excess cash to shareholders through share repurchases and I think you’ll see us continue on that path.”
He also acknowledged the increasing competitive pressure from free, ad-supported streaming services and YouTube, but emphasized that “not all hours are created equal.”
“We have a different profit model from other services, a strong profit model, so we’re going to compete to win more moments of truth, for sure, but especially compete to win those most profitable moments,” Peters said. “It’s worth remembering there’s about 80% of total TV view share that neither Netflix or YouTube are winning right now. We think that represents a huge opportunity for which we are competing aggressively and we aim to grow.”
During the quarter, Netflix introduced its redesigned TV homepage, which is designed to make content discovery on the platform easier. It noted that 50% of members have used the new experience and said early results were “encouraging, outperforming pre-launch testing and demonstrating strong member interest in the new features.”
“The previous experience was designed for the Netflix of 10 years ago, and the business has involved considerably since then. We got a wider breadth of entertainment options. We got TV and film more of those, of course, from around the world, but now also games and live events,” Peters said. “We’re very confident that we’ve got a much better platform in this new user experience to build from to continue to improve, and that’ll help us meet the needs of the business over the years to come.”
The company also said that its upfront negotiations in the U.S. are nearly complete and that it has closed the “vast majority” of its deals with the major agencies. “Those results have generally been in line or slightly better than our targets, and consistent with our goal to roughly double the ads business this year,” Peters said.
Looking ahead, Netflix is forecasting third quarter revenue of $11.53 billion, or 17.3% growth, operating income of $3.63 billion, net income of $2.98 billion and earnings per share of $6.87.
