Netflix Q2 Results Beat, Ad Revenue Set to Double

Netflix reported second-quarter 2025 revenue of $11.1 billion, up 16% year-over-year, and net income of $3.1 billion, a 46% increase, both exceeding expectations. The company raised its full-year revenue guidance to $44.8–$45.2 billion, driven by higher subscription prices, popular content like 'Squid Game,' and a rapidly expanding advertising business. Netflix's ad-supported tier reached 94 million monthly active users, and ad revenue is projected to double to about $3 billion in 2025. The company discontinued quarterly subscriber updates but reported over 95 billion viewing hours in the first half of 2025, with the Asia-Pacific region leading revenue growth. Netflix also completed its proprietary ad tech rollout. Despite strong results, third-quarter operating margin is expected to decline due to higher content and marketing spending.