NETFLIX INCNFLX
NETFLIX INC Financial Overview 2021–2025
Updated Jul 10, 2026Netflix walked away from its canceled Warner Bros. Discovery merger with a $2.8 billion termination fee in Q1 2026, abruptly padding an already cash-flush balance sheet. This windfall underscores a broader financial reality: the streaming pioneer has definitively transitioned from a cash-burning growth story into a highly profitable enterprise driven by sustained pricing power and strict cost discipline.
The company’s underlying performance over the past five years clearly illustrates this operating leverage. Total revenue grew from $29.7 billion in FY2021 to $45.18 billion in FY2025, supported by consistent membership additions and a growing advertising tier. As top-line growth outpaced content amortization costs, profitability expanded dramatically. Operating margins climbed from 21% in FY2021 to 29.5% in FY2025, lifting total operating income to $13.33 billion. Flush with cash, management has heavily prioritized returning capital to investors, authorizing an additional $25 billion for share repurchases in early 2026.
The market has rewarded this combination of global scale and expanding margins. Following a 10-for-1 forward stock split in late 2025, shares ended FY2025 priced at $93.76. At the close of FY2025, Netflix commanded a $395.9 billion market capitalization and traded at 37.1x earnings, reflecting high confidence in its standalone ability to generate cash flow.
Recent Developments (Q4 2025 and Q1 2026)
Following Warner Bros. Discovery's decision to accept a rival bid from Paramount Skydance in February 2026, Netflix pivoted to a standalone strategy alongside a leadership transition. Co-founder Reed Hastings will step down at the 2026 annual meeting, with independent director Jay Hoag succeeding him as Chairman. Revenue for Q1 2026 grew 16% year-over-year to $12.25 billion, or 14% on a constant currency basis. Operating income increased 18% to $3.96 billion, pushing the first-quarter operating margin to 32.3%.
Bulls argue that expanding margins and steady top-line growth justify the stock trading at 38.5x earnings as of April 17, 2026. Bears caution that carrying $24.14 billion in total content obligations, with $11.78 billion due within the next year, leaves the valuation vulnerable if momentum slows.
What to watch: the board transition under Jay Hoag; returns on increased marketing spending for the advertising tier.
Rev
$45.18B
FY2025
NI
$10.98B
FY2025
EPS
$2.58
FY2025
OCF
$10.15B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
All NFLX Financial Metrics(58)
Income Statement
Balance Sheet
- Cash & ST Investments
- Total Assets
- Current Assets
- Cash
- Short-Term Investments
- Prepaid & Other
- PP&E
- Intangibles
- Other Non-current
- Total Liabilities
- Current Liabilities
- Accounts Payable
- Accrued Liabilities
- Short-Term Debt
- Deferred Revenue
- Long-Term Debt
- Other Non-current Liab.
- Equity
- Retained Earnings
- Accumulated OCI
- APIC
- Treasury Stock
- Total L&E
- Shares Outstanding
Cash Flow
Recent SEC Filings
NETFLIX INC 8-K Report, Executive Changes (Jul 30, 2026)
Netflix, Inc. (NFLX) has filed an 8-K report disclosing the resignation of a director, Anne Sweeney, from its Board of Directors, effective July 26, 2026. The filing explicitly states that Ms. Sweeney's departure is not a result of any disagreements with the company. This event, while routine, is important for investors to note as board composition changes can sometimes signal shifts in strategic focus or governance, though in this instance, no such indication is provided. Investors should monitor any subsequent board appointments to understand how the company plans to fill the vacancy and whether new members bring different expertise or perspectives. While this specific filing does not present immediate cause for concern, it's part of the ongoing updates that contribute to the overall understanding of Netflix's corporate governance and leadership.
NETFLIX INC 8-K Report, Corporate Update (Jul 22, 2026)
Netflix, Inc. (NFLX) has announced the successful completion of a registered public offering, raising $1 billion in principal amount of 5.250% senior unsecured notes due 2036. This offering, executed under an underwriting agreement with several major financial institutions, aims to strengthen the company's financial flexibility and manage its debt obligations. The net proceeds from this issuance are earmarked for the repayment of Netflix's outstanding 4.375% Senior Notes due 2026, a significant portion of which is maturing. The remaining funds will be allocated to general corporate purposes, suggesting continued investment in content, technology, or other strategic initiatives. This move indicates a proactive approach by Netflix to manage its debt maturity profile and ensure continued operational capacity.
NETFLIX INC 8-K Report, Financial Results (Jul 16, 2026)
Netflix, Inc. (NFLX) filed an 8-K on July 16, 2026, to report its financial results for the quarter ended June 30, 2026. The filing primarily references a furnished Letter to Shareholders (Exhibit 99.1) which contains detailed financial information, including non-GAAP measures. Investors should note that the company is unable to provide reconciliations for forward-looking non-GAAP financial measures due to the unpredictable nature of certain reconciling items like property and equipment expenditures and foreign currency exchange rate fluctuations, which could materially impact future GAAP results.
NETFLIX INC 8-K Report, Shareholder Vote Results (Jun 5, 2026)
Netflix, Inc. (NFLX) filed an 8-K on June 5, 2026, detailing the outcomes of its 2026 annual meeting of stockholders held on June 4, 2026. The meeting saw overwhelming support for the re-election of all director nominees, with each receiving a substantial majority of votes cast. Additionally, stockholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2026, and approved the advisory resolution on named executive officer compensation. However, several shareholder proposals did not gain approval. These included proposals on the "Shareholder Right to Act by Written Consent," "ESG ROI Report," "Report on Politicized Brand Misalignment," and "Adopt Cumulative Voting." The Board of Directors also announced the appointment of Jay Hoag as the new Chairman of the Board, effective after the annual meeting, and stated that the position of Lead Independent Director would be eliminated due to Mr. Hoag's independence and new role.
NETFLIX INC 8-K Report, Corporate Update (Apr 23, 2026)
Netflix, Inc. (NFLX) announced today a significant expansion of its share repurchase program, with the Board of Directors authorizing an additional $25 billion for stock buybacks. This new authorization is in addition to the existing program approved in December 2024, and both programs now have no expiration date, signaling a strong commitment to returning capital to shareholders. As of March 31, 2026, the company had approximately $6.8 billion remaining under its December 2024 authorization, indicating ample capacity for immediate repurchases. This substantial capital allocation underscores management's confidence in the company's financial health and future prospects. The flexibility in the repurchase methods, including open market transactions, Rule 10b5-1 plans, and privately negotiated deals, allows Netflix to execute buybacks opportunistically. Investors should view this as a positive signal of the company's ability to generate free cash flow and its strategy to enhance shareholder value by reducing the number of outstanding shares.
View all 8-K filings →