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Netflix Reports Record Q1 Revenue and Shifts Focus to Financial Metrics

The streaming giant posted $10.54 billion in revenue, a 12.5% increase, while emphasizing profitability and engagement over subscriber counts.

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The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, U.S., July 12, 2023. REUTERS/Mike Blake/File Photo
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Overview

  • Netflix achieved $10.54 billion in Q1 2025 revenue, surpassing Wall Street estimates, with earnings per share of $6.61.
  • The company reported a 31.7% operating margin, up from 28.1% in Q1 2024, driven by price increases and advertising growth.
  • Ad-supported tiers accounted for over 55% of new sign-ups in markets where available, reflecting strong demand for lower-cost options.
  • Netflix launched its in-house ad-tech platform in the U.S. on April 1, with plans to expand globally in the coming months.
  • Co-founder Reed Hastings transitioned to a non-executive chairman role as part of Netflix's leadership evolution.