Netflix posts major earnings beat as revenue grows 13% in first quarter

Netflix delivered an impressive earnings report on Thursday, beating Wall Street expectations with a 13% year-over-year increase in revenue for the first quarter of 2025.

The streaming giant credited the better-than-expected results to stronger performance in both subscriptions and advertising. In January, Netflix raised its subscription prices across the board — the standard plan now costs $17.99/month, the ad-supported plan is $7.99, and the premium plan is $24.99.

For the first time, Netflix chose not to disclose its quarterly subscriber numbers, signaling a shift in strategy. The company is now prioritizing revenue and financial metrics as key performance indicators, rather than focusing solely on subscriber counts.

Despite broader market volatility caused by trade tensions under President Donald Trump’s administration, Netflix maintained its full-year revenue forecast of $43.5 billion to $44.5 billion.

“There’s been no material change to our overall business outlook,” the company stated.

Addressing concerns about the impact of tariffs on consumer behavior, co-CEO Greg Peters offered a reassuring note during the earnings call:
“From what we’re seeing in our day-to-day operations, there’s nothing significant to report. Historically, entertainment has remained resilient during economic downturns, and Netflix has followed that pattern so far.”

In after-hours trading on Thursday, Netflix shares rose about 2%.

Here’s how Netflix performed for Q1 2025, compared to estimates from LSEG:

• Earnings per share: $6.61 vs. $5.71 expected
• Revenue: $10.54 billion vs. $10.52 billion expected
• Net income: $2.89 billion, up from $2.33 billion a year ago

As subscriber growth begins to level off, Netflix is investing more into advertising. A major goal for 2025 is to strengthen its advertising capabilities. Earlier this April, the company rolled out its own ad tech platform in the U.S., with plans to expand internationally in the coming months.

“We believe our in-house ad tech is central to our long-term advertising strategy,” Netflix said. “It will allow us to improve ad measurement, targeting, formats, and programmatic capabilities as we grow.”