Netflix is due to report second-quarter earnings after the closing bell Thursday.
The streaming service is no longer offering investors quarterly subscriber updates, but Wall Street will be keen to hear how recent price hikes and the platform’s growing advertising tier are faring — especially as businesses across all sectors grapple with consumers tightening their purse strings.
Here’s what Wall Street expects for the company’s most recent quarter:
- Earnings per share: $7.08, according to LSEG
- Revenue: $11.07 billion, according to LSEG
These results would signify earnings growth of 45% year over year and a more than 15% jump in revenue compared to the prior-year period.
Netflix posted a major earnings beat for the first quarter of the year, when it saw revenue rise 13%. The company noted that much of those gains came from increasing the price of its plans near the end of January.
“We believe that Netflix is well-positioned to accelerate ad tier revenue contribution over the next several years by adding and improving live events, enhancing its advertising solutions and targeting capabilities, expanding its ad partnerships, and broadening its content strategy,” Alicia Reese, analyst at Wedbush, wrote in a research note earlier this month.
“While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026,” she continued. “As Netflix expands, its contribution margin can massively exceed our estimates, driving outsized free cash flow.”
Shares of the company are up more than 40% since January and more than 90% over the last 12 months.
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