---
title: "Netflix Q2 2025 Earnings Recap — Growth Continues, But Can It Keep Up the Momentum?"
description: "Netflix just released its Q2 2025 earnings, and while the numbers were solid — even better than expected — the market reaction was lukewarm. Let’s break down what happened and what it means going forw"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/100000000159043.md"
published_at: "2025-07-24T02:14:25.000Z"
author: "[Longbridge Singapore](https://longbridge.com/en/profiles/19276207)"
comments_count: 1
---

# Netflix Q2 2025 Earnings Recap — Growth Continues, But Can It Keep Up the Momentum?

Netflix just released its Q2 2025 earnings, and while the numbers were solid — even better than expected — the market reaction was lukewarm. Let’s break down what happened and what it means going forward:

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### 📈 Financial Highlights

**Revenue:** $10.55B, **+16% YoY** — above company guidance

**Operating Profit:** $3.78B

**Operating Margin:** 34%, up 7pts YoY

**Free Cash Flow:** $2.3B

**EPS:** $5.28, slightly above estimates

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### 🧾 Q3 2025 Outlook: More Hits, More Growth?

Netflix issued a strong Q3 revenue forecast of **+17.3% YoY**, ahead of consensus expectations.

Key drivers:

1.  *Squid Game S3* momentum carrying into Q3
2.  *Wednesday Season 2* release
3.  Original hits like *Nobody Wants This*
4.  Global sporting events (e.g., **Canelo vs. Crawford** boxing match) now streaming on Netflix

* * *

### 🎬 Content Spend: Quality Over Quantity

-   Q2 content spend: **$4B**, flat QoQ, **–8% YoY**
-   Full-year content budget ($18B) may not be fully spent
-   Strategy shift toward **licensing** and high-ROI originals
-   Emphasis on cash flow: Netflix raised full-year **free cash flow guidance to $8–8.5B**

* * *

### 🧠 The Bottom Line

Netflix is delivering:  
✅ Strong earnings  
✅ Higher margins  
✅ Positive cash flow  
✅ Solid global content performance

**🔎 Conclusion:**

Netflix remains a **high-quality compounder** — and one of the few FAANG names still growing double-digits. While valuation is not cheap, its **scale, global brand, and margin control** make it a defensive name in today’s uncertain macro environment.

Source: Reuters, CNBC, YahooFinance

Disclaimer: All information is for illustration purposes and for reference only and shall not be construed as investment advice, recommendation, offer, invitation, solicitation or inducement. Investing involves risks and the price of investment products can rise or fall, sometimes significantly, which may lead to a loss of investment principal. Before making any investment decisions, it is highly recommended that investors carefully review the relevant sales documents and risk disclosure statements, seek independent professional advice and take into consideration all relevant risk factors based on their own needs and judgment.

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## Comments (1)

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**Longbridge Singapore** · 

$Netflix(NFLX.US)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.