In a bold move, Netflix has decided to stop revealing its subscriber numbers, but that hasn't slowed its momentum. The streaming giant recently showcased robust financial results for the first quarter of 2025, far exceeding Wall Street predictions.

Netflix reported an impressive Q1 revenue of $10.54 billion, reflecting a 12.5% growth, with earnings soaring to $6.61 per share, up from $5.28 last year. The company also noted an operating margin that jumped to 31.7%, a notable increase from 28.1% in the same period last year. This quarter marked the first time Netflix has shifted focus away from subscriber counts, which have long been a barometer of its growth.

Analysts had anticipated revenue of $10.51 billion and earnings of $5.66 per share, according to LSEG Data & Analytics. Netflix attributed its revenue boost to membership growth and strategic price increases across several markets, including the U.S., the U.K., and Argentina, with fresh hikes on the horizon in France.

Looking ahead to Q2, Netflix expects a revenue growth of 15%, benefitting from the latest price adjustments and continued growth in memberships and ad revenues. The company is projecting an impressive operating margin of 33% and earnings per share of $7.03 for the June quarter.

Despite concerns about a potential economic downturn impacting consumer spending and advertising budgets, Netflix has demonstrated strong financial health, reporting a 15.6% revenue increase for the full year of 2024. The company has maintained its ambitious forecast for 2025, anticipating revenues between $43.5 billion and $44.5 billion, supported by continued member growth and increased pricing strategies.

As of the end of 2024, Netflix claimed 301.6 million paid subscribers globally, marking a 16% increase year-over-year. However, the streaming service emphasized that financial performance and user engagement metrics are now more crucial than subscriber numbers, particularly with the introduction of various pricing plans and a paid-sharing feature.

Industry analysts speculate that Netflix’s decision to withhold subscriber counts stems from a deceleration in growth rates. Notably, this strategy echoes Apple’s past approach when it ceased to disclose unit sales for its products.

In a significant leadership transition, Netflix co-founder Reed Hastings announced his shift from executive chairman to chairman of the board, taking on a role as a non-executive director.

The company also made strides in its financial structure by paying down $800 million in debt, utilizing proceeds from its 2024 refinancing, and repurchasing 3.7 million shares for $3.5 billion, leaving a substantial $13.6 billion under its share-repurchase authorization. Netflix concluded the quarter with a gross debt of $15.1 billion and cash reserves totaling $7.2 billion, with plans to tackle $1 billion in debt maturities in Q2 through proceeds from a recent investment-grade bond deal.

Overall, Netflix's strategic shifts and robust financial health signal a dynamic future for the leading streamer, even as the landscape of subscriber engagement evolves.