# Netflix Inc. (NFLX) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/NFLX/thesis · /stocks/NFLX/memo

## Financial Snapshot

---
ticker: NFLX
step: 04
generated: 2026-05-12
source: quick-research
---

### Netflix, Inc. (NFLX) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $33.7B | $39.0B | $44.0B | +13% |
| Gross Margin | 41.5% | 43.5% | 45.0% | +1.5pp |
| Operating Margin | 20.6% | 26.7% | 28.5% | +1.8pp |
| Operating Income | $6.95B | $10.4B | $12.5B | +20% |
| Net Income | $5.4B | $8.7B | $10.3B | +18% |
| EPS (diluted) | $12.03 | $19.83 | $23.40 | +18% |

#### Q1 2026 Highlights (most recent reported)

| Metric | Q1 2026 | YoY |
|--------|---------|-----|
| Revenue | $11.5B | +13% |
| Operating Income | $3.5B | +35% |
| Operating Margin | 30.3% | +500bps |
| EPS | ~$6.80 | beat $6.45 est |
| FCF | $2.7B | |

#### Subscriber & Engagement (Q4 2024 final report)

| Metric | Value |
|--------|-------|
| Paid memberships | ~302M (+19M Q4 add — record) |
| Total reach (with extra members) | ~700M |
| Ad-tier % of new sign-ups | 60%+ in supported markets |
| Avg paid revenue per member (annual) | ~$140-150 |

*Note: Netflix stopped reporting quarterly paid subscribers in 2025; biannual engagement reports instead*

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Cash Flow from Operations | ~$13B |
| Content Cash Spend | ~$17.5B |
| Free Cash Flow | ~$8B |
| Cash & Equivalents | ~$10B |
| Total Debt | ~$15B |
| Net Debt / EBITDA | ~0.4x |

#### Key Ratios (approximate, May 2026)
- P/E (forward): ~34x | EV/Sales: ~10x | FCF Yield: ~2%
- Operating margin trajectory: 20% (2023) → 30%+ (2026E)
- Content/revenue ratio: ~40% (declining as revenue scales faster than content)

#### Growth Profile
Netflix is in the post-password-sharing-crackdown, post-ad-tier-launch monetization phase. Revenue accelerated from +6% (2022) → +13% (2024-25). Operating margin expanded ~10 percentage points in 3 years driven by (1) password sharing monetization, (2) ad-tier scaling, (3) selective price increases, (4) content efficiency. FY26 guidance raised: revenue ~$48B and FCF ~$12.5B (vs. prior $11B). Live sports + WWE deal locks in incremental engagement and ad inventory.

#### Forward Estimates
- **FY2026E Revenue:** ~$48B (mgmt; +9-10%)
- **FY2026E Operating Margin:** 30%+ (mgmt target)
- **FY2026E EPS:** ~$26 (consensus, +11%)
- **FY2026E FCF:** $12.5B (mgmt; raised from $11B)
- **FY2027E EPS:** ~$30
- **Ad revenue 2026 target:** ~$3B (doubling from $1.5B in 2025)
- **Long-term operating margin target:** 35%+

#### Capital Return
- $25B share repurchase authorization (2026)
- No dividend (focus on buybacks + content investment)
- Buybacks: ~$6-8B annual pace
- Net debt is moderate (~$5B net) — fortress balance sheet

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/NFLX/fundamental

## Navigation

- Overview: /stocks/NFLX
- Financials (this page): /stocks/NFLX/financials
- Thesis: /stocks/NFLX/thesis
- Investment Memo: /stocks/NFLX/memo
- Coverage universe: /stocks