Netflix 2Q25: By the Numbers, Netflix Earnings Call Highlights, Overall Netflix Takeaways
Happy Monday. Tech 2Q25 earnings season has arrived. Netflix reported last Thursday. We have a few earnings releases this week. Apple reports next week.
Given the influx of new Above Avalon Daily subscribers since the AVALON podcast launched (welcome!), it’s worth quickly going over my philosophy when it comes to covering earnings in these updates.
There is value found in staying abreast on the latest trends and developments in industries that Apple either currently plays in or may play in. The idea isn't to simply note industry norms and best practices but rather gauge potential openings and opportunities for the company.
We will kick off our earnings reviews with Netflix which offers a look at the paid streaming market. While not the largest video streamer (that award goes to YouTube), Netflix provides one of the purer looks at paid streaming.
Netflix 2Q25: By the Numbers
Netflix has longed wanted Wall Street to look at revenue (for gauging growth) and margins (for gauging profitability). Based on those two metrics, the Netflix story was very much intact in 2Q25 (April to June).
The company is growing its membership (helps revenue), pushing sizable price increases (helps revenue as long as churn remains measured), all while being more rational on the content spending versus the past (helps margins).
Revenue: $11.1B (+15.9% from 2Q24). Guidance for the current quarter (3Q25) points to a slight acceleration in revenue growth to 17.3%. Management cited new members, price increases, and increased ad revenue as growth drivers.
Become a member to continue reading today’s update. Already a member? Read the full update here.
An audio version of this update is available to members who have the podcast add-on attached to their membership.
Member Privileges and Benefits
Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive the Above Avalon Daily newsletter, widely-recognized as the leading daily newsletter dedicated to Apple. Now in its tenth year.
Archive Access. Access previous newsletters sent to members.
Member Forum Access. Access all channels in the Above Avalon forum in Discord.
Email Access. Receive timely responses from Neil to email inquiries.
Access to Add-ons. Customize a membership with the AVALON, Podcasts, Inside Orchard, and Financial Models add-ons.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.
Netflix 2Q24 Earnings, Netflix Growth, Wall Street Giving Netflix Green Light to Spend
Today's Above Avalon Daily email contains the following story:
Netflix 2Q24 Earnings
Netflix Growth
Wall Street Giving Netflix Green Light to Spend
There continues to be quite a bit of interest in what’s unfolding in video and music streaming. While Netflix (and Spotify) appear to be finding their strides, Apple's strategy is increasingly being drawn into question by the press and some users. There are various topics that we will discuss. For today, we will dissect Netflix's earnings.
Above Avalon membership is required to read this update. Members can read the update here.
Above Avalon Membership
Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
Member Privileges and Benefits
Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive my daily newsletter and reports containing analysis and perspective, 100% related to Apple.
Earnings Model. Access my working Apple earnings model (an Excel file that also works in Numbers).
Member Archive. Access all previous analysis sent to members.
Member Forums. Interact with other members in the Above Avalon team in Slack.
Priority Email Access. Receive timely responses to all email inquiries.
Access to Add-ons. Customize a membership with the Podcast, Inside Orchard, and Financial Models add-ons.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.