LOS GATOS, Calif. —Netflix once again reported strong financial growth, with revenue increasing 16% year-over-year to $11.079 billion in Q2 2025 as net income spiked by 46% to $3.125 billion at the end of the quarter YoY.
Netflix is no longer reporting sub numbers on a quarterly basis but its letter to shareholders noted that YoY “revenue growth was primarily a function of more members, higher subscription pricing and increased ad revenue.”
Based on those numbers, the company noted that for “2025, we are increasing our revenue forecast to $44.8B-$45.2B from $43.5B-$44.5B, previously. This represents 15%-16% year-over-year growth, or 16%-17% growth on a F/X [foreign exchange] neutral basis. 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…As a result, we are now targeting a 29.5% operating margin for 2025, based on F/X rates at the beginning of the year, up from our prior 29% forecast. At current F/X rates, this would equate to roughly a 30% operating margin for 2025 on a reported basis.”
In terms of advertising, the company reported that “we continue to make progress building our ads business and still expect to roughly double ads revenue in 2025” as it continues to strengthen its tech infrastructure for ad sales.
“We completed the rollout of the Netflix Ads Suite, our in-house first-party ad tech platform, to all of our ads markets and early results are in-line with our expectations,” the shareholder letter noted. “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. We also recently announced we will integrate Yahoo DSP into our programmatic offering.”
