Netflix Inc (NFLX) Q1 2025 Earnings Report

Executive Summary

In Q1 2025, Netflix Inc reported a robust performance with revenues of $10.54 billion, reflecting a year-over-year growth of 12.38% and a quarter-over-quarter increase of 2.89%. This growth can be attributed to strong retention rates and successful content initiatives that continue to engage a global audience of over 222 million paid members across 190 countries. Management’s commitment to enhancing Netflix’s value proposition through significant content investments was underscored during the earnings call. Furthermore, Netflix is strategically preparing for potential economic headwinds by leveraging its low-cost ads plan to attract a resilient consumer base. Overall, the company is well-positioned for future growth with a strong focus on shareholder returns and capital management.

Key Performance Indicators

Revenue

10.54B

QoQ: 2.89% | YoY:12.38%

Gross Profit

5.28B

50.08% margin

QoQ: 17.87% | YoY:19.87%

Operating Income

3.35B

QoQ: 47.27% | YoY:26.61%

Net Income

2.89B

QoQ: 54.68% | YoY:23.93%

EPS

6.76

QoQ: 54.69% | YoY:25.19%

Revenue Trend

Margin Analysis

Key Insights

**Revenue**: $10.54 billion (YoY: 12.38%, QoQ: 2.89%)
**Net Income**: $2.89 billion (YoY: 23.93%, QoQ: 54.68%)
**EPS**: $6.76 (YoY: 25.19%, QoQ: 54.69%)
**Gross Profit Margin**: 50.08%
**Operating Income Margin**: 31.7%

Financial Highlights

### Key Financial Metrics:
- Revenue: $10.54 billion (YoY: 12.38%, QoQ: 2.89%)
- Net Income: $2.89 billion (YoY: 23.93%, QoQ: 54.68%)
- EPS: $6.76 (YoY: 25.19%, QoQ: 54.69%)
- Gross Profit Margin: 50.08%
- Operating Income Margin: 31.7%
- Free Cash Flow: $2.66 billion
- Cash at End of Period: $7.2 billion

### Additional Insights:
- Retention Rates: Stable and strong retention metrics have supported member growth and engagement.
- Operating Expenses: Stability in operating expenses relative to revenue growth showcases effective cost management strategies.
- Investment in Content: The management emphasized a unique culture that allows significant spending to retain customer interest and optimize market position.

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	10.54B	12.38%	2.89%
Gross Profit	5.28B	19.87%	17.87%
Operating Income	3.35B	26.61%	47.27%
Net Income	2.89B	23.93%	54.68%
EPS	6.76	25.19%	54.69%

Key Financial Ratios

currentRatio

1.2

grossProfitMargin

50.1%

operatingProfitMargin

31.7%

netProfitMargin

27.4%

returnOnAssets

5.55%

returnOnEquity

12%

debtEquityRatio

0.63

operatingCashFlowPerShare

$6.53

freeCashFlowPerShare

$6.23

priceToBookRatio

16.58

priceEarningsRatio

34.46

Net Income vs. Revenue

Expense Breakdown

Competitive Position

Company	Gross Margin	Operating Margin	Return on Equity	P/E Ratio
NFLX Focus	50.08%	31.70%	12.00%	34.46%
PARA	19.90%	-5.43%	-2.53%	-3.47%
ROKU	44.10%	-8.17%	-2.16%	-45.36%
WBD	20.10%	-1.15%	-2.19%	-5.56%
AMC	5.37%	-11.50%	8.05%	-1.27%

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2025	10,542.80	6.61	+12.4%	View
Q4 2024	10,246.51	4.27	+16.0%	View
Q3 2024	9,824.70	5.40	+15.0%	View
Q2 2024	9,526.01	4.88	+16.4%	View
Q1 2024	9,381.68	5.28	+15.0%	View

Netflix Inc (NFLX) Q1 2025 Earnings Report

Earnings Highlights