Netflix Revenue Jumps 12.5% to $10.5 Billion in Q1, Driven by Pricing, Subscriber Growth

Netflix shares jumped 4% in after-hours trading after the company beat Wall Street expectations for its first quarter of 2025 on Thursday.

Revenue grew 12.5% to $10.5 billion, driven by higher pricing and higher-than-forecasted subscription and ad revenue, the latter of which the company said is still “very small.”

Here are the top-line results:

Net income: $2.89 billion, compared to $2.33 billion a year ago.

Earnings per share: $6.61 per share, compared to $5.69 per share expected by analysts surveyed by Zacks Investment Research.

Revenue: $10.54 billion, up 12.5% year over year, in line with analysts surveyed by Zacks Investment Research.

Operating income: $3.35 billion, up 31.7% year over year, compared to $2.63 billion a year ago.

Netflix touted the release of series “Adolescence” and films “Back in Action,” “Ad Vitam” and “Counterattack” during the quarter. It also continued to build out its live programming offering with the launch of WWE Raw, which has been on its global Top 10 list every week. Netflix plans to stream the Taylor vs Serrano women’s boxing rematch on July 11 and opted into a second NFL game for Christmas Day 2025.

Additionally, Netflix launched its in-house adtech platform in the U.S. on April 1 and is on track to roll it out in the remaining ads countries in the coming months.

“We are working hard to improve and expand our entertainment offering with the goal to build the most valued entertainment company for members, creators and shareholders,” the company wrote in its quarterly shareholder letter.

The streamer also revealed that executive chairman Reed Hastings would transition out of the role to become board chairman and a non-executive director. Additionally, its longest-standing independent board director Tim Haley informed the company that he would not stand for re-election.

The latest earnings disclosure marks Netflix’s first in which it no longer breaks out its total subscriber and average revenue-per-paid member figures on a quarterly basis as it shifts its focus to revenue, operating margins and engagement.

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.

Revenue in the U.S. and Canada grew 9% year over year to $4.62 billion, due to a partial impact from pricing changes, plan mix and the absence of ad revenue from its Christmas Day NFL games. The company expects revenue growth in the region to accelerate in the second quarter. Meanwhile, revenue climbed 15% year over year $3.41 billion in Europe, the Middle East and Africa; 8% to 1.26 billion in Latin America; and 23% to $1.26 billion in the Asia-Pacific region.

It also comes as President Donald Trump’s tariff policy has prompted economic uncertainty and sparked fears of a global recession. While tariffs don’t directly impact TV shows and films, it could have an indirect impact in areas such as advertising and consumer spending.

Netflix co-CEO Greg Peters said the company is paying close attention to consumer sentiment and the broader economy, but said there’s “nothing really significant to note” in terms of impacts to the company. He said retention and engagement remains “stable and strong” and that there haven’t been any significant changes in its plan mix.

Looking ahead, Netflix has maintained its revenue guidance of $43.5 billion to $44.5 billion in 2025 and an operating margin of 29%. It expects to double its total ad revenue year over year in 2025.

In the second quarter of 2025, it expects revenue to grow 15.4% to $11.04 billion as it sees a full quarter benefit from pricing changes and continued subscriber and ad revenue growth. It also anticipates net income of $3.06 billion, earnings per share of $7.03, operating income growth of 33.3% to $3.68 billion and an operating margin of 33%.

Longer-term, The Wall Street Journal recently reported that the company is eyeing a $1 trillion market capitalization by 2030. Per the Journal, it’s aiming to double its revenue from $39 billion last year and generate roughly $9 billion in global ad sales by 2030, triple operating income from $10 billion last year and grow its subscriber base to around 410 million in that time.

“We often have internal meetings and we talk about long term aspirations, but it’s important to note that this is not the same as forecast. Our operating plans is the same as our external forecasting guidance,” Sarandos said. “We don’t have a five year forecast or five year guidance, but you can assume that we are long range thinking and that we’re working hard every day to build the most loved and valued entertainment company for all of our stakeholders. We do have big, long term aspirations, and those aspirations are really grounded in the potential for growth that we see in the business.”

More to come…

The post Netflix Revenue Jumps 12.5% to $10.5 Billion in Q1, Driven by Pricing, Subscriber Growth appeared first on TheWrap.