Netflix delivered robust second-quarter 2025 financial results, with total revenues reaching $11.08 million, marking a 16% increase year-over-year from $9.56 million. Operating income surged 45% to $3.77 million, up from $2.60 million in the prior year period, leading to an operating margin expansion of approximately seven percentage points to 34.1%.
Net income increased 46% to $3.13 million, and net cash provided by operating activities significantly rose to $2.42 million from $1.29 million in Q2 2024. The company attributed this strong performance to healthy membership gains, higher pricing, and increasing advertising revenue, demonstrating effective monetization.
Management raised its full-year 2025 revenue guidance to $44.8 billion to $45.2 billion and increased its operating margin target to 30%. The final season of 'Squid Game' contributed to exceeding earnings targets, and Netflix highlighted its use of generative AI for visual effects in the 'El Eternaut' series, achieving a 10x faster completion rate for a specific VFX sequence.
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