Netflix Posts Strong Q1 Results as Revenue Grows 13%

Netflix kicked off 2025 with a robust first quarter, reporting revenue of $10.54 billion, a 13 percent increase over Q1 2024. Earnings per share stood at $6.61, comfortably surpassing analyst forecasts of $5.71. Net income rose to $2.89 billion, compared with $2.33 billion in the same period last year.

Strategic Subscription Price Increase

In late January, Netflix implemented its largest price adjustment in two years. The standard tier climbed from $15.49 to $17.99 per month, the ad‑supported plan jumped to $7.99, and the premium option increased to $24.99. Management credits these changes with boosting average revenue per user and supporting expanded content investments.

Pivot to Advertising Revenue

Recognizing the limits of subscription growth, Netflix rolled out its proprietary ad‑tech platform on April 1 in the United States. The new system offers advertisers advanced targeting, enhanced measurement tools, and programmatic buying options. Co‑CEO Ted Sarandos emphasized that advertising will play an increasingly important role, with the company aiming to roughly double ad revenue by year‑end.

Guidance and Future Outlook

Netflix reaffirmed its full‑year 2025 revenue guidance of $43.5 billion to $44.5 billion, underscoring confidence in sustained subscriber engagement, pricing power, and the burgeoning ad business. The company projects second‑quarter revenue of approximately $11.04 billion, outpacing most Wall Street estimates.

Market Reaction and Resilience

Shares climbed about 2 percent in after‑hours trading, extending gains amid broader market volatility. Despite concerns over trade policy and consumer spending, Netflix’s results underscore the resilience of streaming entertainment and the company’s ability to adapt its business model.

Key Takeaways:

• Revenue: $10.54 billion, up 13% year‑over‑year

• Earnings: $6.61 per share vs. $5.71 expected

• Net Income: $2.89 billion, up from $2.33 billion in Q1 2024

• Price Hikes: Standard plan raised to $17.99; ad‑supported to $7.99; premium to $24.99

• Ad Business: In‑house ad tech platform launched April 1 in the U.S.

• Guidance: Full‑year revenue outlook maintained at $43.5–$44.5 billion