The news: Netflix heads into its Q2 2025 earnings call with momentum—but also pressure. The stock has nearly doubled over the past year and now trades at a lofty 43x forward earnings, per CNBC. At that valuation, expectations are sky-high, and any misstep could be costly.
- Revenues: $11.1 billion (a record)
- Earnings per Share: $7.35
- Q3 outlook: Revenues of $11.5 billion and $6.70 EPS
No subs, no problem: Netflix’s shifting of the focus away from net subscriber growth (no longer reporting subs at all) forces onlookers to judge the company based on margins, revenues, and monetization efficiency.
Following a surge in signups from its password-sharing crackdown (41 million net adds in 2024, including 19 million in Q4), growth has now tapered. Most of Netflix’s recent subscriber growth came from people who finally started paying after the password crackdown, meaning the easiest gains are likely behind them, notes Antenna; today, Netflix is working harder to retain users than acquire new ones.
Not the screen time champ: Netflix remains the most-used subscription video service in the US, accounting for 69% of connected TV users, per LG Ad Solutions. But it still isn’t the leader in time spent.
Netflix’s total share of TV time (7.5%) now lags behind YouTube (12.4%) and Disney (10.7%), per Nielsen. YouTube’s rise, especially among Gen Z, signals a generational shift. Crockett warns that Netflix risks falling behind in the broader “time spent” competition, even if it dominates SVOD.