Netflix Reports Strong Earnings in Q1 2025 – Full Details
Netflix reported its first quarter 2025 financial results. The company earned 10.54 billion dollars in total revenue and 3.3 billion dollars in operating income. This represents a 12.5 percent increase compared to the first quarter of 2024.
A significant change in their reporting is that Netflix will no longer disclose subscriber numbers. Previously, these figures were regularly shared as they helped investors track the company’s growth. Netflix explained this decision by saying they now want to focus more on financial performance and user engagement metrics. They will only announce subscriber numbers when reaching major milestones.
Despite stopping subscriber count updates, Netflix ended 2024 with approximately 302 million subscribers. Some experts believe the company made this change because subscriber growth has been slowing down. A similar situation occurred in 2018 when Apple stopped reporting iPhone sales numbers.
Netflix stated that their revenue growth came mainly from two sources: more people joining the service and recent price increases. While the company has started making some money from advertising, this remains much smaller than subscription revenue.
In late 2024, Netflix raised prices in several countries including the US, Canada, Portugal and Argentina. The basic plan with ads increased from 6.99 to 7.99 dollars per month. The standard ad-free plan went up from 15.49 to 17.99 dollars. The premium plan rose from 22.99 to 24.99 dollars monthly.
Looking ahead to the second quarter of 2025, Netflix expects revenue to grow by about 15 percent, largely due to these price increases. The company plans to continue expanding its advertising business and live streaming offerings. They are currently testing more live events like sports games and plan to offer these outside the US.
Netflix also announced a leadership change. Co-founder Reed Hastings will move from executive chairman to a non-executive board chairman position.
The company recently faced criticism along with other major tech firms about tax payments. A UK organization claimed Netflix and five other large tech companies avoided paying about 278 billion dollars in US taxes over the past decade.
In the last quarter of 2024, Netflix added nearly 19 million new subscribers, reaching 302 million total. Popular content included the Squid Game series and live events like sports games and concerts. The company made 1.87 billion dollars profit on 10.25 billion dollars revenue in that quarter, with its stock price rising over 10 percent after the report.
Netflix continues to focus on creating shows and movies from around the world that appeal to local audiences while also growing its live event offerings and advertising business. The company believes these strategies will help maintain its position as the leading streaming service globally.
