Core Insights - Netflix reported Q2 2025 earnings that exceeded investor expectations, with revenue reaching $11.08 billion, a year-over-year increase of 15.9% [1][4] - The company raised its full-year revenue guidance, indicating strong growth prospects despite anticipated lower operating margins in the second half of the year due to increased content amortization and marketing costs [1][11] Financial Performance - Revenue: Q2 revenue was $11.08 billion, up 15.9% year-over-year, slightly above Wall Street's expectation of $11.07 billion, driven by membership growth and advertising revenue [1][4] - Operating Income: Q2 operating income was $3.775 billion, with an operating margin of 34.1%, up from 27% in the same quarter last year [4][5] - Net Income: Q2 net income reached $3.125 billion, a significant increase of 45.6% year-over-year [4][5] - Earnings Per Share: Diluted EPS was $7.19, up 47% year-over-year, surpassing the market expectation of $7.08 [4][5] - Free Cash Flow: Q2 free cash flow was $2.3 billion, up from $1.2 billion in the same quarter last year, with full-year free cash flow guidance raised to $8 billion to $8.5 billion [4][5] Regional Performance - Revenue growth was strong across all regions, with Asia-Pacific leading at 24% growth, followed by EMEA at 18% and North America at 15% [7][8] - In North America, revenue growth accelerated from just over 9% in Q1 to 15% in Q2, despite price increases implemented in January [7][8] Future Outlook - The company raised its 2025 revenue forecast from $43.5 billion to $44.8 billion to $45.2 billion, with Q3 revenue expected to be $11.53 billion, above Wall Street's estimate [11] - Netflix anticipates its advertising revenue to double this year following the rollout of its advertising technology suite [11]