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On Tuesday night, Netflix delivered a blockbuster earnings beat for the first quarter of 2025, posting $10.54 billion in revenue and $6.61 earnings per share, both above expectations. Net profit jumped 24% to $2.89 billion, and margins improved to 31.7%.
The company is firing on all cylinders, with price hikes, growing ad revenue, and steady subscriber momentum. The cheaper ad-supported tier is now 55% of new sign-ups. While Netflix no longer reports subscriber numbers, it hinted at healthy membership growth, especially outside the US.
The ad tier's growth is particularly margin-accretive, as it monetises price-sensitive users while boosting total average revenue per household. Their new in-house ad tech platform launched this month.
The push into live content is going well, with the addition of WWE's Raw and boxing matches. Buzzworthy series like Adolescence and The Residence have also helped deepen engagement across markets.
Netflix reaffirmed full-year revenue guidance of $43.5 to $44.5 billion and expects second-quarter revenue of $11.04 billion. With a goal to double revenue by 2030 and boost global ad sales to $9 billion, Netflix is staying in the lead - and not buffering.
Despite Trump-era tariff jitters weighing on media stocks, Netflix seems immune. Management sees no slowdown and believes in-home entertainment will remain resilient in tough times.
