It has been a brutal year for NFLX longs, who have seen their favorite stock slide in a straight line since last summer, erasing almost 50% from the July 2025 all time high of $134. And unfortunately for them, it appears this brutality isn't going to end any time soon after the company mangled its Q2 earnings moments ago, reporting mediocre earnings, but more importantly, projecting numbers that missed consensus estimates for both Q3 and and the full year.
First, looking at the historicals, we find results that just barely beat expectations, while US and Canada revenue outright missed.
- EPS 80c, barely beating the est 79c, and up from 72c y/y
- Revenue $12.56 billion, +13% y/y, barely beating the est $12.58 billion
- US & Canada revenue $5.43 billion, +10% y/y, missing estimate $5.52 billion
- EMEA revenue $4.03 billion, +14% y/y, matching estimate $4.03 billion
- Latin America revenue $1.58 billion, +21% y/y, beating estimate $1.51 billion
- APAC revenue $1.51 billion, +16% y/y, missing estimate $1.53 billion
- Operating income $4.19 billion, +11% y/y, beating estimate $4.13 billion
- Operating margin 33.4% vs. 34.1% y/y, beating estimate 33%
- Operating margin 33.4% vs. 34.1% y/y, beating estimate 33%
- Cash flow from operations $1.74 billion, -28% y/y, missing estimate $2.93 billion
- Free cash flow $1.53 billion, -33% y/y, badly missing estimate $2.72 billion... maybe they too are building a data center.
While historical were lously at best - it was the company's projections that spooked
