Netflix's Next Act: From Hyperscale Growth To Ad-Driven Margin Expansion

  • Netflix's earnings beat expectations, with EPS at $6.61 vs. $5.71 expected, signaling a shift to profit and margin expansion over subscriber growth. The company is focusing on ad revenue as a primary growth driver, targeting $8 billion in free cash flow for 2025, alongside continued share buybacks. NFLX maintains a conservative balance sheet with very low debt relative to EBITDA, and is now solidly free cash flow positive and self funding.