Core Viewpoint - Netflix is expected to report its Q2 2025 earnings on July 17, with Citigroup predicting slightly higher revenue and EBIT due to favorable foreign exchange factors, while investors will focus on updates regarding advertising, subscriber trends, and live content strategy [1] Financial Guidance - Netflix previously guided Q2 revenue at $11.035 billion and EBIT at $3.675 billion, with market consensus aligning closely with this guidance. Citigroup forecasts a 1.0% increase in both revenue and EBIT compared to the guidance [2] - The market consensus anticipates Netflix will guide Q3 2025 revenue at $11.3 billion and EBIT at $3.43 billion, corresponding to a profit margin of approximately 30.4% [2] - For the full year 2025, Netflix previously indicated a revenue range of $43.5 billion to $44.5 billion, with an EBIT margin of around 29%, based on January 2025 foreign exchange rates. The favorable current foreign exchange environment suggests the company may exceed its guidance [2] Cash Flow and Spending - Netflix has previously guided for cash content spending of $18 billion in 2025, with free cash flow projected at $8 billion [3] Short Interest - According to FactSet data, short interest in Netflix is low, with only about 1.7% of its shares outstanding being shorted [4] Key Focus Areas - Netflix launched its proprietary advertising technology platform in the U.S. in April, and investors will be keen on updates regarding the effectiveness of this platform and potential expansion into other markets [5] - In Q2, Netflix reached a broadcasting agreement with French broadcaster TF1, allowing it to provide live broadcasts and content. Management may view this agreement as a test for future collaborations with other broadcasters, and investors will look for comments on this strategic direction [5] - Investors will pay attention to any comments from Netflix regarding subscriber trends, including churn rates or changes in subscription tiers, especially following price adjustments earlier in the year [5] - Reports indicate that Netflix is exploring partnerships with Spotify to expand its live content offerings, which may include live music award shows or concert series. Citigroup believes investors will continue to monitor the company's latest developments in live content strategy, particularly in sports, as approximately 5% of U.S. national sports rights are set to expire in the next 12 months [5]