Earnings and Revenue Surpass Estimates
Netflix posted earnings per share of $4.88, surpassing the expected $4.74. Revenue reached $9.56 billion, a 16.8% increase year-over-year, slightly above the anticipated $9.53 billion. The company’s performance was driven by growth in average paid memberships and the success of its ad-supported tier.
Subscriber Growth Continues to Impress
The streaming leader added 8.05 million new subscribers in Q2, significantly exceeding expectations of 4.7 million. This brings Netflix’s total global paid memberships to 278 million, a 16.5% increase from the previous year. The company’s password-sharing crackdown and expansion of its ad-supported tier have contributed to this growth.
Ad-Supported Tier Gains Momentum
Netflix reported a 34% quarter-on-quarter increase in ad-supported memberships. The company aims to achieve critical ad subscriber scale in its ad countries by 2025, setting the stage for further growth in 2026 and beyond. To boost the ad tier, Netflix plans to phase out its basic plan membership in the US and France.
