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Netflix Inc Financials

NFLX
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Netflix Inc (NFLX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 73 / 100
Financial Profile 73/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
88

Netflix Inc has an operating margin of 29.5%, meaning the company retains $29 of operating profit per $100 of revenue. This strong profitability earns a score of 88/100, reflecting efficient cost management and pricing power. This is up from 26.7% the prior year.

Growth
60

Netflix Inc's revenue surged 15.9% year-over-year to $45.2B, reflecting rapid business expansion. This strong growth earns a score of 60/100.

Leverage
92

Netflix Inc carries a low D/E ratio of 0.51, meaning only $0.51 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
19

Netflix Inc's current ratio of 1.19 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 19/100, which could limit financial flexibility.

Cash Flow
77

Netflix Inc converts 20.9% of revenue into free cash flow ($9.5B). This strong cash generation earns a score of 77/100.

Returns
100

Netflix Inc earns a strong 41.3% return on equity (ROE), meaning it generates $41 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is up from 35.2% the prior year.

Altman Z-Score Safe
11.34

Netflix Inc scores 11.34, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($416.6B) relative to total liabilities ($29.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
6/9

Netflix Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Mixed
0.92x

For every $1 of reported earnings, Netflix Inc generates $0.92 in operating cash flow ($10.1B OCF vs $11.0B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage Safe
17.2x

Netflix Inc earns $17.2 in operating income for every $1 of interest expense ($13.3B vs $776.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$45.2B
YoY+15.9%
5Y CAGR+12.6%
10Y CAGR+20.9%

Netflix Inc generated $45.2B in revenue in fiscal year 2025. This represents an increase of 15.9% from the prior year.

EBITDA
$13.7B
YoY+27.1%
5Y CAGR+23.8%
10Y CAGR+43.5%

Netflix Inc's EBITDA was $13.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 27.1% from the prior year.

Net Income
$11.0B
YoY+26.1%
5Y CAGR+31.8%
10Y CAGR+56.7%

Netflix Inc reported $11.0B in net income in fiscal year 2025. This represents an increase of 26.1% from the prior year.

EPS (Diluted)
$2.53

Netflix Inc earned $2.53 per diluted share (EPS) in fiscal year 2025. This represents an increase of 27.8% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$9.5B
YoY+36.7%
5Y CAGR+37.4%

Netflix Inc generated $9.5B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 36.7% from the prior year.

Cash & Debt
$9.0B
YoY+15.7%
5Y CAGR+1.9%
10Y CAGR+17.4%

Netflix Inc held $9.0B in cash against $13.5B in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
4.22B

Netflix Inc had 4.22B shares outstanding in fiscal year 2025. This represents an increase of 887.0% from the prior year.

Margins & Returns

Gross Margin
48.5%
YoY+2.4pp
5Y CAGR+9.6pp
10Y CAGR+16.2pp

Netflix Inc's gross margin was 48.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 2.4 percentage points from the prior year.

Operating Margin
29.5%
YoY+2.8pp
5Y CAGR+11.1pp
10Y CAGR+25.0pp

Netflix Inc's operating margin was 29.5% in fiscal year 2025, reflecting core business profitability. This is up 2.8 percentage points from the prior year.

Net Margin
24.3%
YoY+2.0pp
5Y CAGR+13.3pp
10Y CAGR+22.5pp

Netflix Inc's net profit margin was 24.3% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.0 percentage points from the prior year.

Return on Equity
41.3%
YoY+6.0pp
5Y CAGR+16.3pp
10Y CAGR+35.7pp

Netflix Inc's ROE was 41.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 6.0 percentage points from the prior year.

Capital Allocation

R&D Spending
$3.4B
YoY+15.9%
5Y CAGR+13.1%
10Y CAGR+19.5%

Netflix Inc invested $3.4B in research and development in fiscal year 2025. This represents an increase of 15.9% from the prior year.

Share Buybacks
$9.1B
YoY+45.7%

Netflix Inc spent $9.1B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 45.7% from the prior year.

Capital Expenditures
$688.2M
YoY+56.6%
5Y CAGR+6.7%
10Y CAGR+22.4%

Netflix Inc invested $688.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 56.6% from the prior year.

NFLX Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $12.1B+4.7% $11.5B+3.9% $11.1B+5.1% $10.5B+2.9% $10.2B+4.3% $9.8B+2.8% $9.6B+2.0% $9.4B
Cost of Revenue $6.5B+5.8% $6.2B+15.8% $5.3B+1.2% $5.3B-8.7% $5.8B+12.6% $5.1B-1.0% $5.2B+4.0% $5.0B
Gross Profit $5.5B+3.4% $5.3B-7.1% $5.8B+9.0% $5.3B+17.9% $4.5B-4.8% $4.7B+7.3% $4.4B-0.2% $4.4B
R&D Expenses $890.3M+4.3% $853.6M+3.5% $824.7M+0.2% $822.8M+6.0% $776.5M+5.6% $735.1M+3.3% $711.3M+1.3% $702.5M
SG&A Expenses $567.8M+24.0% $457.9M+3.8% $441.2M+4.7% $421.5M-7.1% $453.7M+8.7% $417.4M-2.3% $427.0M+5.7% $404.0M
Operating Income $3.0B-9.0% $3.2B-13.9% $3.8B+12.8% $3.3B+47.3% $2.3B-21.9% $2.9B+11.8% $2.6B-1.1% $2.6B
Interest Expense $234.4M+33.7% $175.3M-4.0% $182.6M-0.8% $184.2M-4.4% $192.6M+4.2% $184.8M+10.0% $168.0M-3.1% $173.3M
Income Tax $349.2M-37.9% $562.5M+11.1% $506.3M+56.6% $323.4M+21.7% $265.7M-21.7% $339.4M-7.4% $366.6M+29.8% $282.4M
Net Income $2.4B-5.0% $2.5B-18.5% $3.1B+8.1% $2.9B+54.7% $1.9B-20.9% $2.4B+10.1% $2.1B-7.9% $2.3B
EPS (Diluted) N/A $5.87-18.4% $7.19+8.8% $6.61 N/A $5.40+10.7% $4.88-7.6% $5.28

NFLX Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $55.6B+1.2% $54.9B+3.5% $53.1B+1.9% $52.1B-2.9% $53.6B+2.6% $52.3B+6.5% $49.1B+0.6% $48.8B
Current Assets $13.0B+0.4% $13.0B+8.1% $12.0B+2.5% $11.7B-10.7% $13.1B+8.0% $12.1B+26.1% $9.6B-3.1% $9.9B
Cash & Equivalents $9.0B-2.7% $9.3B+13.6% $8.2B+13.6% $7.2B-7.8% $7.8B+4.7% $7.5B+12.6% $6.6B-5.7% $7.0B
Inventory N/A N/A N/A N/A N/A N/A N/A N/A
Accounts Receivable N/A N/A N/A N/A N/A N/A N/A N/A
Goodwill N/A N/A N/A N/A N/A N/A N/A N/A
Total Liabilities $29.0B0.0% $29.0B+3.0% $28.1B+0.3% $28.1B-2.9% $28.9B-2.3% $29.6B+9.5% $27.0B-1.7% $27.5B
Current Liabilities $11.0B+12.8% $9.7B+8.8% $8.9B-8.0% $9.7B-9.6% $10.8B+0.5% $10.7B+5.6% $10.1B+9.2% $9.3B
Long-Term Debt $13.5B-6.9% $14.5B+0.1% $14.5B+3.2% $14.0B+1.5% $13.8B-2.6% $14.2B+16.3% $12.2B-7.8% $13.2B
Total Equity $26.6B+2.5% $26.0B+4.0% $25.0B+3.8% $24.0B-2.9% $24.7B+8.9% $22.7B+2.7% $22.1B+3.5% $21.4B
Retained Earnings $42.3B+6.1% $39.9B+6.8% $37.3B+9.1% $34.2B+9.2% $31.3B+6.3% $29.4B+8.7% $27.1B+8.6% $24.9B

NFLX Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $2.1B-25.3% $2.8B+16.6% $2.4B-13.1% $2.8B+81.5% $1.5B-33.8% $2.3B+79.8% $1.3B-41.7% $2.2B
Capital Expenditures $239.3M+45.3% $164.7M+5.7% $155.9M+21.5% $128.3M-19.2% $158.7M+25.1% $126.9M+62.0% $78.3M+3.4% $75.7M
Free Cash Flow $1.9B-29.6% $2.7B+17.3% $2.3B-14.8% $2.7B+93.1% $1.4B-37.2% $2.2B+81.0% $1.2B-43.3% $2.1B
Investing Cash Flow -$256.5M-684.7% $43.9M-94.3% $768.7M+58.3% $485.7M+406.1% -$158.7M+91.5% -$1.9B-2287.5% -$78.3M-3.4% -$75.7M
Financing Cash Flow -$2.1B-19.6% -$1.7B+30.6% -$2.5B+37.9% -$4.0B-493.5% -$678.7M-399.5% $226.6M+115.2% -$1.5B+30.2% -$2.1B
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $2.1B+12.0% $1.9B+12.2% $1.7B-53.2% $3.5B+266.9% $963.7M-43.3% $1.7B+6.3% $1.6B-20.0% $2.0B

NFLX Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin 45.9%-0.6pp 46.5%-5.5pp 51.9%+1.8pp 50.1%+6.4pp 43.7%-4.2pp 47.9%+2.0pp 45.9%-1.0pp 46.9%
Operating Margin 24.5%-3.7pp 28.2%-5.8pp 34.1%+2.3pp 31.8%+9.6pp 22.2%-7.4pp 29.6%+2.4pp 27.2%-0.9pp 28.1%
Net Margin 20.1%-2.1pp 22.1%-6.1pp 28.2%+0.8pp 27.4%+9.2pp 18.2%-5.8pp 24.1%+1.6pp 22.5%-2.4pp 24.9%
Return on Equity 9.1%-0.7pp 9.8%-2.7pp 12.5%+0.5pp 12.0%+4.5pp 7.5%-2.8pp 10.4%+0.7pp 9.7%-1.2pp 10.9%
Return on Assets 4.3%-0.3pp 4.6%-1.3pp 5.9%+0.3pp 5.5%+2.1pp 3.5%-1.0pp 4.5%+0.1pp 4.4%-0.4pp 4.8%
Current Ratio 1.19-0.1 1.330.0 1.34+0.1 1.20-0.0 1.22+0.1 1.13+0.2 0.95-0.1 1.07
Debt-to-Equity 0.51-0.1 0.56-0.0 0.580.0 0.58+0.0 0.56-0.1 0.62+0.1 0.55-0.1 0.62
FCF Margin 15.5%-7.6pp 23.1%+2.6pp 20.5%-4.8pp 25.2%+11.8pp 13.5%-8.9pp 22.3%+9.7pp 12.7%-10.1pp 22.8%

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Frequently Asked Questions

Netflix Inc (NFLX) reported $45.2B in total revenue for fiscal year 2025. This represents a 15.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Netflix Inc (NFLX) revenue grew by 15.9% year-over-year, from $39.0B to $45.2B in fiscal year 2025.

Yes, Netflix Inc (NFLX) reported a net income of $11.0B in fiscal year 2025, with a net profit margin of 24.3%.

Netflix Inc (NFLX) reported diluted earnings per share of $2.53 for fiscal year 2025. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Netflix Inc (NFLX) had EBITDA of $13.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Netflix Inc (NFLX) had $9.0B in cash and equivalents against $13.5B in long-term debt.

Netflix Inc (NFLX) had a gross margin of 48.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Netflix Inc (NFLX) had an operating margin of 29.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Netflix Inc (NFLX) had a net profit margin of 24.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Netflix Inc (NFLX) has a return on equity of 41.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Netflix Inc (NFLX) generated $9.5B in free cash flow during fiscal year 2025. This represents a 36.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Netflix Inc (NFLX) generated $10.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Netflix Inc (NFLX) had $55.6B in total assets as of fiscal year 2025, including both current and long-term assets.

Netflix Inc (NFLX) invested $688.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Netflix Inc (NFLX) invested $3.4B in research and development during fiscal year 2025.

Yes, Netflix Inc (NFLX) spent $9.1B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Netflix Inc (NFLX) had 4.22B shares outstanding as of fiscal year 2025.

Netflix Inc (NFLX) had a current ratio of 1.19 as of fiscal year 2025, which is considered adequate.

Netflix Inc (NFLX) had a debt-to-equity ratio of 0.51 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Netflix Inc (NFLX) had a return on assets of 19.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Netflix Inc (NFLX) has an Altman Z-Score of 11.34, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Netflix Inc (NFLX) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Netflix Inc (NFLX) has an earnings quality ratio of 0.92x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Netflix Inc (NFLX) has an interest coverage ratio of 17.2x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Netflix Inc (NFLX) scores 73 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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