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Final 'Squid Game' season lifts Netflix above earnings forecasts

Published: 18 Jul. 2025, 10:08

Still from the third and final season of Netflix's ″Squid Game″ [NETFLIX]

The final season of global phenomenon "Squid Game" (2021-) helped Netflix beat Wall Street earnings targets for the second quarter, and the streaming service raised its revenue guidance for the year.

Shares of the company, which had risen nearly 44 percent this year ahead of the earnings report on Thursday, fell 1 percent to $1,260 in after-hours trading. The company said its higher revenue forecast "primarily reflects the weakening of the U.S. dollar."

For April through June, Netflix posted diluted earnings per share of $7.19. That topped the $7.08 consensus estimate of analysts polled by LSEG.

The company raised revenue guidance for 2025 to $44.8 billion to $45.2 billion, citing the weakening of the U.S. dollar plus "healthy member growth and ad sales." Its previous guidance was up to $44.5 billion.

Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. It also has added live events such as WWE wrestling to draw advertisers and viewers.

Still from the last and third season of Netflix's series ″Squid Game″ (2021-) [NETFLIX]

"There are few surprises, as Netflix is now a well-oiled machine," PP Foresight analyst Paolo Pescatore said of the earnings report. "Advertising still remains a key strategic goal and one that will take a bit longer to crack."

For the just-ended quarter, net income came in at $3.1 billion, edging forecasts of $3.06 billion. Revenue totaled $11.08 billion, above the $11.07 billion analyst projection.

Netflix released the third and final season of dystopian Korean drama "Squid Game" a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said.

Still from the last and third season of Netflix's series ″Squid Game″ (2021-) [NETFLIX]

Other releases during the quarter included "Sirens," "The Four Seasons" and a third season of "Ginny & Georgia" (2021-).

The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue.

Looking ahead, Netflix forecast revenue of $11.5 billion and net income of nearly $3 billion. Analysts had projected $11.3 billion and $2.9 billion.

The company also has new seasons of two of its biggest shows coming later this year. "Wednesday" (2022-) returns in August, and the final episodes of "Stranger Things" (2016-) will be released in November and December.

Reuters