07:43 AM EDT, 07/03/2025 (MT Newswires) -- Netflix ( NFLX ) is expected to deliver Q2 results above guidance, driven by higher subscription pricing and growth in its ad-supported offering, Wedbush Securities said in a note Thursday.

The firm projects Q2 revenue of $11.16 billion and earnings of $7.18 per share, above company guidance and consensus.

Continued control of churn by offering options to trade down to less expensive tiers is helping maintain subscriber growth despite the price increases across several regions, Wedbush said.

"Netflix ( NFLX ) is positioned to accelerate ad tier revenue contribution for the next several years by adding and improving live events, enhancing its advertising solutions and targeting, expanding its ad partnerships, and broadening its content strategy," analysts said in the note. "While massive subscriber growth was the primary driver in 2024, we expect price increases to drive revenue growth in 2025, and the ad tier to drive revenue higher in 2026."

Netflix ( NFLX ) reiterated 2025 guidance for revenue between $43.5 billion and $44.5 billion and a 29% operating margin. Wedbush said the outlook appears conservative and sees upside to both free cash flow and margins.

Wedbush maintained its outperform rating on Netflix ( NFLX ) and a $1,400 price target.