18 July 2025
If you are covering Netflix’s latest results, please see the following comment from Ben Barringer, global technology analyst at Quilter Cheviot:
“Netflix has once again posted a strong set of results, this time with a beat and raise, though this was mainly driven by foreign exchange. Other drivers included member growth which has continued to be a real strength for the business, as well as improvements in advertising sales.
“Netflix’s advertising business is now coming well into its own and is enabling the company to produce increasingly better targeting, good measurement and more personalised adverts – all of which are supported by almost entirely its own technology.
“Its revenues have continued to rise while costs have been held consistent, meaning margins are rising and confidence in full year guidance has increased. Full year revenue growth is now expected to reach 16.5% - up from 15.5% - and margin expectations were raised from 29% to 29.5%.
“Netflix is anticipating an even stronger second half, with its content slate adding the likes of Squid Game 3, a new Stranger Things and Happy Gilmore 2 to name just a few. It continues to work on live events, and its new user interface has achieved a reasonably good reception. Generative AI is also benefitting the company, from improved production costs, to use in visual effects and tailored user recommendations. As a predominantly data based company, there is scope for Netflix to reap considerably more benefits as generative AI progresses.
“Netflix has long since maintained a strong and consistent message, and we can expect further improvement from the business throughout the remainder of the year.”
