Netflix has reported stronger-than-expected earnings for the first quarter of 2025, driven by global price hikes and a steady increase in subscriptions. The streaming giant posted earnings of $6.61 (€5.81) per share, along with revenue of $10.54 billion (€9.27 billion)—a 25% increase in earnings and a 12.5% rise in revenue compared to the same period last year. Operating income reached $3.35 billion (€2.95 billion), bringing the operating margin to an impressive 31.7%, its highest in recent memory.
Price Increases Drive Growth
The growth in Netflix’s financial performance can largely be attributed to subscription price hikes implemented in the U.S., Canada, Argentina, and Portugal. These increases, which affected every subscription tier—from the ad-supported option to the premium plan—contributed to a significant rise in profitability. Although advertising remains a smaller revenue stream, Netflix’s core subscription model remains the primary driver of its success.
Netflix Shifts Focus to Financial Metrics
In a strategic shift, Netflix has announced that it will no longer report subscriber numbers, opting instead to focus on financial metrics such as revenue and profit margins. This change in reporting comes after the company added 18.9 million new subscribers in late 2024, though analysts predict a slowdown in subscriber growth this year.
After a challenging 2022, Netflix recalibrated its approach by launching a more affordable ad-supported tier and cracking down on password sharing. The company also expanded into live events and sports, including streaming NFL games, WWE RAW, and high-profile matchups such as the Jake Paul vs. Mike Tyson fight.
Content Remains a Key Driver
Fresh and engaging content continues to play a pivotal role in Netflix’s performance. Popular series such as Adolescence—the first streaming show to top the UK’s weekly TV rankings—alongside hit films like Back in Action, Ad Vitam, and Counterattack, have helped drive user engagement and attract new subscribers.
Resilience Amid Market Volatility
Despite broader turbulence in the tech sector, Netflix’s stock has gained 9% so far in 2025. Co-CEO Greg Peters highlighted the company’s ability to thrive even in uncertain economic conditions, noting, “Entertainment tends to hold up in tough economies—and Netflix has proven that over and over.”
Netflix has reaffirmed its outlook for the remainder of 2025, forecasting revenue between $43.5 billion (€38.3 billion) and $44.5 billion (€39.1 billion), with a target operating margin of 29%. The company is currently on track to meet the midpoint of its forecast range.
With robust financial results, ongoing global expansion, and a consistent stream of high-profile content, Netflix remains a leader in the competitive streaming market. As it continues to evolve its business model and adapt to changing consumer preferences, Netflix is well-positioned to maintain its dominance in the ever-growing digital entertainment space.