Netflix reports $3.3B operating income in Q1 2025, revenue up 13% YoY

Netflix, Inc. (NASDAQ: NFLX) today announced financial results for the first quarter of 2025, marking a strong start to the year with revenue and operating income exceeding internal forecasts. Its Q1 highlights included:

A 13% revenue growth year over year (16% on a foreign exchange [F/X] neutral basis), driven primarily by membership growth and higher pricing. This was partially offset by F/X, net of hedging. Revenue came in modestly above guidance due to slightly higher-than-expected subscription and advertising revenue.

UCAN (U.S. and Canada) revenue grew 9% year over year, compared to 15% growth in Q4 2024. This reflected only a partial quarter impact from recent price changes, plan mix, and the absence of ad revenue from Christmas Day NFL games. Netflix expects UCAN revenue growth to reaccelerate in Q2.

Operating income rose to $3.3 billion, up 27% year over year. Operating margin reached 32%, compared to 28% in Q1 2024. These results were slightly above forecast due to revenue upside and timing of expense spending.

Earnings per share (EPS) increased 25% year over year to $6.61, up from $5.28 in the prior-year period.

“We’re off to a good start in 2025,” said Netflix. “Our performance reflects the strength of our core subscription business, momentum in advertising, and continued discipline in cost management.”

Strategic and Content Highlights: Netflix continues to execute on its 2025 priorities:

Stronger Content Slate: The company delivered a solid lineup in Q1, with the series Adolescence and films Back in Action, Ad Vitam, and Counterattack all breaking into Netflix’s all-time most popular lists.

Advertising Expansion: On April 1, Netflix successfully launched its in-house ad tech platform in the U.S., with plans to roll it out to all remaining ad-supported countries in the coming months.

Growth in Live Programming: Netflix debuted WWE RAW in Q1, which has consistently ranked in the global Top 10. The company also announced Taylor vs. Serrano 3, a landmark women’s boxing rematch streaming July 11, and confirmed it will stream a second NFL game on Christmas Day 2025.

Outlook: For Q2 2025, Netflix expects revenue growth of 15% year over year (17% on an F/X neutral basis), supported by the full-quarter impact of recent price increases and ongoing gains in both membership and advertising revenue. Operating margin is projected at 33%, a ~6 percentage point improvement from Q2 2024.

Netflix reaffirmed its full-year 2025 revenue guidance of $43.5 billion to $44.5 billion, assuming continued healthy member growth, increased subscription pricing, and a near doubling of ad revenue. The company remains on track to achieve a 29% operating margin for the year, based on F/X rates as of January 1, 2025. Given the recent weakness of the U.S. dollar, Netflix is currently trending above the midpoint of this guidance range.

“Our focus remains on improving and expanding our entertainment offering while delivering sustainable revenue and profit growth,” the company added. “We’re working hard to build the most valued entertainment company for our members, creators, and shareholders.”