Despite market turbulence, Netflix delivers solid Q1

Overview

After a record-breaking 2024, Netflix continued its strong momentum into Q1 2025, delivering double-digit growth in both revenue and profit. Performance was bolstered by steady subscriber growth, higher pricing, and an expanded offering in live and ad-supported content. Management reaffirmed its guidance for the full year, signaling confidence in sustained profitability and scale, despite the problems that have arisen in the market due to the tariffs announced by President Donald Trump.

Q1 2025 vs. Q1 2024

Revenue increased to a value of $10.54bn (+12.5% YoY), above the initial estimates announced in the previous report, supported by membership growth and higher subscription prices.
- UCAN revenue was $4.62bn (+9% YoY), with Q2 expected to accelerate after full impact of pricing changes.
- EMEA revenue reached to $3.41bn (+15% YoY), helped by localized hits and increased market penetration.
- LATAM revenue recorded a value of $1.26bn (+8% YoY), despite strong F/X headwinds.
- APAC revenue was also $1.26bn (+23% YoY), led by strong local production and higher engagement in India and Japan.
Operating income rose to $3.35bn (+27% YoY), above guidance due to better-than-expected subscription and ad revenue as well as expense timing.
Operating margin was 31.7% (compared to 28.1% in Q1 2024 and the estimate of 28.2% from the last report), reaching an all-time quarterly high.
Net income reached to $2.89bn (+24% YoY), while diluted EPS increased to $6.61 (vs. $5.28 in Q1 2024 and the forecast of $5.58), highlighting continued growth in profitability and operational efficiency.
Free cash flow also increased to $2.66bn (+24% YoY), with $3.5bn in share repurchases (3.7m shares bought back) and $800m in debt paid down using 2024 refinancing proceeds.
“Adolescence” became Netflix’s third most popular English-language series ever (124m views).
Films like Back in Action (146m views), Ad Vitam (63m views), and Counterattack (59m views) broke into all-time top lists.
WWE RAW launched globally with consistent top 10 rankings since debut; major live events such as Taylor vs. Serrano 3 and a second NFL game for Christmas 2025 announced.
Ad tech platform successfully launched in the US on April 1; full rollout planned in all ad markets.
Membership growth in ad-supported plans remains a strategic priority, with revenue from ads still small but growing steadily.

Netflix reaffirmed its full-year 2025 guidance, maintaining confidence in its financial trajectory despite a competitive and dynamic market. The company expects revenue to reach between $43.5bn and $44.5bn, now trending toward the upper end of the range. Operating margin is projected to remain steady at 29%, in line with the January forecast, while free cash flow is anticipated to be approximately $8bn, supported by continued subscriber growth, higher pricing, and expanding advertising revenue.

After the publication of the results report for the first quarter of 2025, which practically opened the reporting season of this period for the major companies on Wall Street, the stock price of NFLX shares experienced a fairly significant increase, given the context in which the American market has been in recent months, with extremely high volatility. The company’s shares thus appreciated by approximately +3% at the time of writing this article in the after-market session, at one point even exceeding the symbolic threshold of $1000, a sign that investors viewed with very good feelings, especially the fact that the company does not see the issue of trade tariffs as a threat for this year. Moreover, after a short period in which the market price was below the 50-day moving average, it recovered and crossed the threshold of this indicator again, and with the help of the RSI, the stock price seems to be stabilizing slightly at this level, towards the close of this trading week, on the night of April 18.