Analysts expect Netflix (NFLX, Financial) to post Q2 revenue of roughly $11.05 billion and EPS $7.07 after the market closes on Thursday, 17 Jul 2025. Shares are 40% higher year-to-date, and about 6% below the late-June all-time high of $1,341.15. The rally follows management's guidance for a 33% operating-margin quarter and growing confidence in the ad business.
With Netflix no longer issuing quarterly paid-membership or ARM data, investors will key on engagement and churn commentary. The advertising tier hit 94 million users in May and accounted for 55% of new sign-ups, shifting focus to viewing time and cohort retention. Management's forthcoming bi-annual engagement report and any color on churn after last autumn's price increases will be closely watched.
Cash generation is another swing factor. Netflix continues to project about $8 billion in 2025 free cash flow even after committing $5 billion over a ten-year deal to stream WWE's “Raw” from January 2025. Evidence that higher sports costs can coexist with disciplined spending will determine whether the stock's premium multiple endures.
