Netflix Smashes Q2 Expectations, Yet Stock Price Falls.

Ad Plans and Squid Game Power Netflix Growth

Netflix just released its newest financial results, and they were better than most people expected. The company earned over $11 billion in the second quarter of 2025, which was up about 16% from last year. Profits also jumped 46%, showing that Netflix is making more money while still growing.

KEY TAKEAWAYS

• NFLX earnings for Q2 2025 beat expectations with strong revenue and profits.

• The Netflix earnings report showed growing user numbers, especially for ad-supported plans.

• Despite the positive results, the Netflix stock price dropped slightly due to the company's modest guidance.

• Experts still see long-term growth potential in NFLX.

This impressive Netflix earnings update had fans and investors excited. Big shows like “Squid Game” and “Stranger Things” continue to attract viewers, while new content and even live sports are keeping people hooked.

Ad Plans Are Growing Fast

One of the most interesting changes in the Netflix earnings report was the ad-supported plan. Almost half of the new users in the U.S. picked the cheaper plan that includes ads. That’s helping Netflix earn money in a brand-new way, and it could grow even more in the future. This strategy is working well, especially as more families look for ways to save money but still enjoy their favorite shows. With more viewers and more ways to earn money, Netflix is finding success.

Netflix Booth at a Gamescom Tech Event in Cologne, Germany.

Why Did the Stock Drop?

Even though the earnings were great, the Netflix stock price went down slightly after the announcement. Why? Some investors were hoping for an even bigger forecast for the rest of the year. Netflix said it might not grow as fast in the next few months, and that made Wall Street a little unsure. Also, NFLX stock has been trading at a high value, which means it’s already expensive. So any small worry about future growth can cause the price to dip—even if the results right now are strong.

What’s Next for NFLX?

Experts still believe in NFLX. They say the company is smart about making shows people love and keeps finding new ways to make money. With global expansion, better ad tools, and hit content, Netflix could keep growing for years to come.

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Disclaimer: This content is meant for informational use only and should not be interpreted as financial advice or a recommendation to trade any securities. Please do your own research or speak with a qualified expert before making any investment choices.