Netflix reports 45% YoY profit rise in Q2, cites ad business & price revisions
Netflix on Wednesday reported a 45% year-on-year rise in net profit to $3.1 billion for the second quarter of 2025, buoyed by subscription price increases and the continued growth of its advertising business. Revenue for the quarter ended June 30 rose 16% to $11.1 billion, surpassing both analyst expectations and the company’s own projections.
On the back of these results, Netflix has raised its full-year revenue guidance to a range of $44.8 billion to $45.2 billion, up from the previously projected $43.5 billion to $44.5 billion.
The company reported strong viewership across several original titles. The third season of 'Squid Game' garnered 122 million views, making it Netflix’s sixth most-watched season of any series to date. Other notable performers included 'Ginny & Georgia' season three (53 million views), 'Sirens' (56 million views), and the animated feature 'KPop Demon Hunters' (80 million views), which ranks among Netflix’s most-watched animated titles.
Korean programming continued to be a key international driver, with Netflix noting its consistent popularity across global markets.
For the second half of 2025, Netflix said it expects momentum to continue, citing upcoming releases including the second season of 'Wednesday,' the final season of 'Stranger Things,' and new films by directors Kathryn Bigelow and Guillermo del Toro.
The company also announced an expansion in its live content slate, with upcoming NFL games and boxing events forming part of its programming strategy.
Netflix said its ad-supported tier and password-sharing curbs have significantly contributed to revenue growth. While it did not disclose specific figures, the company projected ad revenue to roughly double in 2025 and reach $9 billion by 2030.
The company ended 2024 with over 300 million subscribers, gaining around 19 million during the holiday quarter. It has since shifted focus from subscriber counts to engagement-based metrics such as total viewing hours.
Netflix shares have risen more than 40% year-to-date.
News