Netflix Earnings Summary: The Business Model Is Fine, It's P/E Compression That Is The Risk

Netflix reported a good quarter, with EPS and revenue beating estimates by +2% and fractionally, respectively, while operating income came in 3% ahead of the consensus. It also raised guidance for calendar 2025. Revisions post the July 17th earnings release for forward free cash flow estimates continue to track higher. Management addressed the heavily tilted back-half of 2024 releases which have skewed the company's operating margin, and they noted that while the operating margin guidance for NFLX was raised once again after the July 17th earnings release, the full-year operating margin will be higher than what was seen as of the Q2 '25 number.