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Netflix (NFLX)
NASDAQ:NFLX
Earnings Data
Report Date
Jul 16, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
7.03Last Year’s EPS
4.88Same Quarter Last Year
Strong Buy
Based on 38 Analysts Ratings
Earnings Call Summary
Earnings Call Date:Apr 17, 2025
|% Change Since: 25.28%
|Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment|Positive
The earnings call reflects a generally positive outlook with strong revenue figures, stable retention, and promising growth in advertising revenue. Netflix's strategic global content investments and innovations in AI further bolster the positive sentiment. However, some challenges remain, such as anticipated operating margin pressures and limited growth impact from extra member accounts and gaming.Company Guidance
During the Netflix Q1 2025 earnings call, executives shared several key metrics and guidance details. Greg Peters highlighted Netflix's current business strength with over $40 billion in revenue, over 300 million paid households, and an audience of over 700 million individuals, while capturing less than 10% of TV hours and about 6% of consumer spend in ad revenue in its served markets. Despite potential global economic uncertainties, Netflix's retention remains strong, with stable engagement and plan mix, and the company continues to see resilience in its entertainment value with a low-cost ad plan starting at $7.99 in the U.S. and Canada. The company expects to maintain a 29% operating margin for the full year, with content expenses ramping up in the latter half. Netflix aims to double its advertising revenue in 2025, leveraging its proprietary ad-tech platform, and anticipates significant growth in its gaming business, targeting a $140 billion consumer spend opportunity. The guidance also includes an expectation for growing free cash flow, primarily redeployed into share buybacks, absent major M&A activities.Strong Revenue and Market Position
Netflix reported over $40 billion in revenue and has over 300 million paid households, representing an audience of over 700 million individuals. They lead in streaming view share, indicating a strong market position with significant growth potential.
Stable Consumer Sentiment and Retention
Despite economic uncertainties, Netflix reported stable retention and strong engagement. Recent price changes and plan take rates have been in line with expectations, showing resilience in consumer sentiment.
Advertising Revenue Growth
Netflix expects to double its advertising revenue in 2025, supported by a successful rollout of its proprietary ad-tech platform in Canada and the U.S., with plans to expand globally.
Innovations in AI and Content Creation
Netflix is leveraging AI to improve content creation processes, making movies not only cheaper but potentially better. They are actively using AI tools for set references, VFX, and more.
Commitment to Global Content Production
Netflix announced significant commitments to content production in the U.K., Mexico, and Korea, demonstrating a strong global production strategy.
Analyst Q&A - Earnings Call
Daniel Salmon
New Street
1 Answers
Question: Given the need to ensure safety and well-being of cast and crews, has there been any disruption to your L.A.-based productions owing to the wildfires? If so, can you please quantify the impact on this year's cash content spending?
Jason Helfstein
Oppenheimer
2 Answers
Question: Is it fair to assume that most of the upside in the 19 million subscriber additions came from the Jake Paul and the Christmas Day football games? And how was the attrition or retention, I guess, post the Christmas Day games versus normal post-holiday levels?
Steven Cahall
Wells Fargo
1 Answers
Question: The U.S. dollar has strengthened since your last results, and you said that you'll tend to underperform your margin targets when the dollar is stronger. What FX volatility do you think you can successfully hedge out in 2025? And what are the best ways to estimate the impact of currency movements, net of hedging?
Brian Pitz
BMO Capital
1 Answers
Question: The advertising user base is growing quickly and your ad tech has been ramping for almost a year. What are your biggest learnings and perhaps hurdles for advertising monetization in 2025?
Jessica Reif Ehrlich
Bank of America Securities
1 Answers
Question: On advertising, do you have all the tech and tools you need to significantly scale up and move from the crawl to walk phase?
Benjamin Swinburne
Morgan Stanley
1 Answers
Question: Do the strong viewing numbers for the NFL games leave you more interested in full season sports rights for Netflix? Or do you still see full season sports rights as generally unattractive for Netflix?
Richard Greenfield
LightShed Partners
1 Answers
Question: Has the fight and WWE Raw results influenced your decision process on additional rights like the UFC?
John Blackledge
TD Cowen
1 Answers
Question: Can you please talk about the drivers of raising your 2025 operating margin guidance? What are the biggest points of leverage driving higher margins this year?
NFLX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
NFLX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 17, 2025 | $973.03 | $987.91 | +1.53% |
Jan 21, 2025 | $869.68 | $953.99 | +9.69% |
Oct 17, 2024 | $687.65 | $763.89 | +11.09% |
Jul 18, 2024 | $643.04 | $633.34 | -1.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Netflix (NFLX) report earnings?
Netflix (NFLX) is schdueled to report earning on Jul 16, 2025, TBA Not Confirmed.
What is Netflix (NFLX) earnings time?
Netflix (NFLX) earnings time is at Jul 16, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is NFLX EPS forecast?
NFLX EPS forecast for the fiscal quarter 2025 (Q2) is 7.03.
