Netflix 2Q25 Earnings Preview

TradingKey - Netflix will release its 2Q25 earnings on July 17^th after the market closes. The expectations for the quarter are the following:

• 2Q25 Earnings per share: $7.03 estimate vs 2Q24 actual of $4.88 (+44% y/y) 
• 2Q25 Revenue: $11.04bn estimate vs 2Q24 actual of $9.56bn (+15% y/y)

The EPS expectations for NFLX are scary high, but how could it be different– the company is firing on all cylinders - the stock price is up 50% since April, margins are hitting new heights, blockbuster content is getting released…

So, what will investors watch on July the 17^th?

The content pipeline is strong: Squid Game Season 3 just got released less than two weeks ago, while Wednesday and Stranger Things are expected in the coming months. Regular release of blockbuster shows will keep the level of subscribers. And even though the company will not disclose these numbers anymore, content release will make sure the subscribers’ number is kept in check.

Any plans with regard to content will also be expected from investors, especially in newly penetrated arras such as sports entertainment.

Price increases: As the company is in a rather mature growth stage when it comes to subscribers, the main top line driver will be price increases, rather than subscribers’ growth. Investors will be expecting news with regard to increase in pricing across geography and given that price increase usually comes after successful content releases, expectations are there.

Ad Revenue: Revenue from advertising is still at a nascent level (bellow 10% of total revenue) but the expectations are already high, and the investors closely follow these developments. The push towards ad-friendly content like sports events and WWE shows will be of some help towards diversifying away from the pure subscription revenue.

Conclusion

Netflix seems unstoppable at the moment, with great content, ability to boost prices and emerging advertising revenue. But the higher you climb, the harder you fall.