Netflix reported stronger-than-expected earnings on Thursday, with second-quarter revenue climbing 16% year over year to $11.08 billion, surpassing analysts’ estimates.

The streaming giant posted earnings per share of $7.19, beating the $7.08 expected by analysts polled by LSEG. Net income rose to $3.1 billion, up from $2.1 billion in the same quarter last year, while operating cash flow hit $2.4 billion—an 84% increase year over year. Free cash flow also jumped by 91%, reaching $2.3 billion.

Netflix raised its full-year revenue forecast to between $44.8 billion and $45.2 billion, citing favorable currency exchange rates, strong subscriber growth, and increased ad revenue. The previous forecast range was between $43.5 billion and $44.5 billion. The company also increased its free cash-flow projection for 2025 to $8–$8.5 billion, up from a prior target of around $8 billion.

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This quarter marked the second time Netflix has not provided a quarterly update on its subscription numbers. Instead, the company emphasized that revenue growth was driven by a larger subscriber base, higher pricing, and expanding advertising income.

Operating margin for Q2 stood at 34.1%, up nearly 3 percentage points from the previous quarter and 7 points year over year. However, Netflix warned that margins in the second half of the year are expected to be lower due to increased content costs and marketing spend tied to a busy release schedule.

Despite the strong financials, Netflix shares dipped about 1% in after-hours trading. The company has a packed lineup ahead, including the highly anticipated second season of Wednesday, the Stranger Things finale, Happy Gilmore 2, and Guillermo del Toro’s Frankenstein.