Sunday, June 1, 2025

Netflix’s Revenue Jumps 13% in Q1, Driven by Price Hikes and Ad Growth

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Netflix reported results that significantly exceeded market expectations. The higher-than-expected revenue stems from an increase in subscriber numbers and advertising revenue.

On Thursday, Netflix announced that its revenue for the first quarter of this year reached 10.54 billion USD, marking a 13% increase compared to the previous year. Earnings per share (EPS) stood at 6.61 USD.

This performance surpassed Wall Street’s average estimate of 10.52 billion USD in revenue and 5.71 USD EPS, as compiled by financial information provider LSEG.

Netflix’s strong results also reflect the impact of price hikes implemented earlier this year. In 2025, Netflix raised prices across the board in the U.S., increasing the standard plan to 17.99 USD per month, the ad-supported plan to 7.99 USD per month, and the premium plan to 24.99 USD.

Netflix anticipates that the Trump administration’s tariff policies will not significantly affect its operations, projecting annual revenue to range between 43.5 billion USD and 44.5 billion USD this year.

In this context, Netflix co-CEO Greg Peters stated that the company has no major concerns regarding the Trump administration’s tariff policies.

Peters stated, “We also take some comfort in the fact that entertainment historically has been pretty resilient in tougher economic times.”

Netflix also expects its proprietary advertising technology platform to help launch innovative advertising campaigns with industry-leading technology.

Earlier this month, Netflix launched its own advertising technology platform in the U.S. and plans to expand it to other countries in the coming months.

In this regard, Netflix stated its belief in the proprietary advertising technology platform as the foundation for long-term advertising strategy. The company added that over time, the platform will provide more accurate measurements, improved targeting, and innovative advertising features.

Meanwhile, on the New York Stock Exchange (NYSE), Netflix’s stock closed up 1.19% at 973.03 USD. Following the earnings announcement, Netflix shares rose about 2% in after-hours trading.

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