Netflix Inc (NFLX) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Sep 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 17, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the NFLX SEC filings page.
Netflix Inc (NFLX) reported $48.4B in revenue over the twelve months to Jun 30, 2026, up 16.0% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Netflix’s dominant mechanic is operating leverage: expanding gross margin and cash generation are converting growth into disproportionately higher profits.
From FY2024 to FY2025, revenue growth was accompanied by operating-income growth that was materially faster, indicating that incremental sales flowed through the existing cost structure. The simultaneous lift in gross margin from46.1% to48.5% suggests the improvement reflects more than fixed-cost absorption alone, although the data cannot isolate mix from cost effects.
FY2025 operating cash flow of
The balance sheet became less dependent on leverage: liabilities were essentially flat at
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Netflix Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
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 89/100, reflecting efficient cost management and pricing power. This is up from 26.7% the prior year.
Netflix Inc's revenue surged 15.9% year-over-year to $45.2B, reflecting rapid business expansion. This strong growth earns a score of 77/100.
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 68/100, indicating a strong balance sheet with room for future borrowing.
Netflix Inc's current ratio of 1.19 is below the typical benchmark, resulting in a score of 28/100. However, the company holds substantial cash reserves (82% of current liabilities), which buffers actual liquidity risk. Large mature operators often run tight current ratios by design.
Netflix Inc converts 20.9% of revenue into free cash flow ($9.5B). This strong cash generation earns a score of 86/100.
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 87/100. This is up from 35.2% the prior year.
Netflix Inc scores 9.46, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($325.8B) relative to total liabilities ($29.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
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.
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.
Netflix Inc earns $17.16 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
Earnings & Revenue
Netflix Inc generated $12.6B in revenue in Q2 2026. This represents an increase of 13.4% from the same quarter a year earlier. Against the prior quarter it is up 2.5%.
Netflix Inc's EBITDA was $4.3B in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 11.4% from the same quarter a year earlier. Against the prior quarter it is up 5.9%.
Netflix Inc reported $3.4B in net income in Q2 2026. This represents an increase of 8.8% from the same quarter a year earlier. Against the prior quarter it is down 35.6%.
Netflix Inc earned $0.80 per diluted share (EPS) in Q2 2026. Against the prior quarter it is down 35.0%.
Cash & Balance Sheet
Netflix Inc generated $1.5B in free cash flow in Q2 2026, representing cash available after capex. This represents a decrease of 32.7% from the same quarter a year earlier. Against the prior quarter it is down 70.1%.
Netflix Inc held $9.1B in cash against $11.8B in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Margins & Returns
Netflix Inc's gross margin was 51.9% in Q2 2026, indicating the percentage of revenue retained after direct costs. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.
Netflix Inc's operating margin was 33.4% in Q2 2026, reflecting core business profitability. This is down 0.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.1 percentage points.
Netflix Inc's net profit margin was 27.1% in Q2 2026, showing the share of revenue converted to profit. This is down 1.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 16.1 percentage points.
Netflix Inc's ROE was 11.3% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 1.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 5.7 percentage points.
Capital Allocation
Netflix Inc invested $1.0B in research and development in Q2 2026. This represents an increase of 22.2% from the same quarter a year earlier. Against the prior quarter it is up 5.0%.
Netflix Inc spent $4.7B on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 185.0% from the same quarter a year earlier. Against the prior quarter it is up 271.0%.
Netflix Inc invested $218.6M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 40.3% from the same quarter a year earlier. Against the prior quarter it is up 11.5%.
NFLX Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $12.6B+13.4% | $12.2B+16.2% | $12.1B+17.6% | $11.5B+17.2% | $11.1B+15.9% | $10.5B+12.5% | $10.2B+16.0% | $9.8B+15.0% |
| Cost of Revenue | $6.0B+13.4% | $5.9B+11.9% | $6.5B+13.1% | $6.2B+20.4% | $5.3B+2.9% | $5.3B+5.7% | $5.8B+8.7% | $5.1B+3.8% |
| Gross Profit | $6.5B+13.4% | $6.4B+20.5% | $5.5B+23.4% | $5.3B+13.6% | $5.8B+31.2% | $5.3B+20.2% | $4.5B+27.1% | $4.7B+30.3% |
| R&D Expenses | $1.0B+22.2% | $959.7M+16.6% | $890.3M+14.7% | $853.6M+16.1% | $824.7M+15.9% | $822.8M+17.1% | $776.5M+15.3% | $735.1M+11.9% |
| SG&A Expenses | $498.9M+13.1% | $602.6M+43.0% | $567.8M+25.2% | $457.9M+9.7% | $441.2M+3.3% | $421.5M+4.3% | $453.7M+3.3% | $417.4M-12.8% |
| Operating Income | $4.2B+11.1% | $4.0B+18.2% | $3.0B+30.1% | $3.2B+11.6% | $3.8B+45.0% | $3.3B+27.1% | $2.3B+51.9% | $2.9B+51.8% |
| EBITDA | $4.3B+11.4% | $4.1B+18.3% | $3.0B+29.3% | $3.3B+11.5% | $3.9B+43.6% | $3.4B+26.0% | $2.4B+48.6% | $3.0B+49.0% |
| Interest Expense | $175.7M-3.8% | $262.1M+42.3% | $234.4M+21.7% | $175.3M-5.2% | $182.6M+8.7% | $184.2M+6.3% | $192.6M+9.9% | $184.8M+5.3% |
| Income Tax | $667.2M+31.8% | $1.3B+291.0% | $349.2M+31.5% | $562.5M+65.7% | $506.3M+38.1% | $323.4M+14.5% | $265.7M+26.3% | $339.4M+46.5% |
| Net Income | $3.4B+8.8% | $5.3B+82.8% | $2.4B+29.4% | $2.5B+7.8% | $3.1B+45.6% | $2.9B+23.9% | $1.9B+99.3% | $2.4B+40.9% |
| EPS (Basic) | $0.81+9.5% | $1.25+83.8% | -$17.54-26.4% | $6.00+8.7% | $0.74-85.2% | $0.68-87.4% | -$13.88-739.6% | $5.52+45.3% |
| EPS (Diluted) | $0.80 | $1.23 | -$17.14 | $5.87+8.7% | $0.72 | $0.66 | -$13.58-737.6% | $5.40+44.8% |
| Diluted Shares (Avg) | 4.26B | 4.30B | N/A | 434M-0.9% | 4.35B | 4.37B | N/A | 438M-2.7% |
NFLX Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $58.5B+10.1% | $61.0B+17.1% | $55.6B+3.7% | $54.9B+5.1% | $53.1B+8.1% | $52.1B+6.7% | $53.6B+10.1% | $52.3B+5.6% |
| Current Assets | $13.9B+15.5% | $17.1B+45.9% | $13.0B-0.6% | $13.0B+6.9% | $12.0B+24.7% | $11.7B+17.9% | $13.1B+32.1% | $12.1B+12.5% |
| Cash & Equivalents | $9.1B+11.3% | $12.3B+70.3% | $9.0B+15.7% | $9.3B+24.5% | $8.2B+23.4% | $7.2B+2.5% | $7.8B+9.7% | $7.5B+1.4% |
| Short-Term Investments | $28.7M-86.5% | $28.7M-97.6% | $28.7M-98.4% | $37.1M-97.9% | $213.1M+588.1% | $1.2B+5484.0% | $1.8B+8382.4% | $1.8B+243.6% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Liabilities | $28.3B+0.5% | $29.9B+6.5% | $29.0B+0.3% | $29.0B-2.0% | $28.1B+4.3% | $28.1B+2.2% | $28.9B+2.6% | $29.6B+7.9% |
| Current Liabilities | $12.1B+35.7% | $12.1B+24.8% | $11.0B+2.1% | $9.7B-9.1% | $8.9B-11.8% | $9.7B+4.6% | $10.8B+21.4% | $10.7B+28.4% |
| Non-Current Liabilities | $16.2B-15.8% | $17.8B-3.2% | $18.0B-0.7% | $19.2B+2.1% | $19.2B+14.0% | $18.3B+0.9% | $18.1B-6.0% | $18.9B-1.1% |
| Long-Term Debt | $11.8B-18.2% | $13.4B-4.6% | $13.5B-2.4% | $14.5B+2.1% | $14.5B+18.7% | $14.0B+6.0% | $13.8B-2.4% | $14.2B+1.9% |
| Total Equity | $30.2B+20.8% | $31.1B+29.5% | $26.6B+7.6% | $26.0B+14.2% | $25.0B+12.8% | $24.0B+12.5% | $24.7B+20.2% | $22.7B+2.8% |
| Retained Earnings | $51.0B+36.6% | $47.6B+39.1% | $42.3B+35.1% | $39.9B+35.4% | $37.3B+37.9% | $34.2B+37.2% | $31.3B+38.6% | $29.4B+35.9% |
Not reported in any period shown, so not listed: Inventory, Accounts Receivable, Goodwill.
NFLX Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.7B-28.0% | $5.3B+89.7% | $2.1B+37.4% | $2.8B+21.7% | $2.4B+87.7% | $2.8B+26.1% | $1.5B-7.6% | $2.3B+16.5% |
| Depreciation & Amortization | $100.5M+25.6% | $98.6M+23.1% | $86.0M+8.1% | $87.3M+7.9% | $80.0M-1.5% | $80.1M-8.2% | $79.5M-8.1% | $80.9M-10.8% |
| Stock-Based Compensation | $131.3M+62.4% | $140.4M+95.1% | N/A | $81.0M+23.4% | $80.9M+17.6% | $72.0M-5.7% | N/A | $65.7M-17.6% |
| Capital Expenditures | $218.6M+40.3% | $196.1M+52.9% | $239.3M+50.8% | $164.7M+29.8% | $155.9M+99.1% | $128.3M+69.4% | $158.7M+94.4% | $126.9M+22.1% |
| Free Cash Flow | $1.5B-32.7% | $5.1B+91.4% | $1.9B+35.8% | $2.7B+21.2% | $2.3B+87.0% | $2.7B+24.5% | $1.4B-12.8% | $2.2B+16.2% |
| Investing Cash Flow | -$218.6M-128.4% | -$781.9M-261.0% | -$256.5M-61.7% | $43.9M+102.3% | $768.7M+1081.9% | $485.7M+741.4% | -$158.7M-138.6% | -$1.9B-731.3% |
| Financing Cash Flow | -$4.7B-86.6% | -$1.2B+69.4% | -$2.1B-206.1% | -$1.7B-866.6% | -$2.5B-68.0% | -$4.0B-88.9% | -$678.7M+72.3% | $226.6M+109.2% |
| Share Buybacks | $4.7B+185.0% | $1.3B-64.1% | $2.1B+115.8% | $1.9B+9.2% | $1.7B+3.4% | $3.5B+76.8% | $963.7M-61.5% | $1.7B-32.0% |
Not reported in any period shown, so not listed: Dividends Paid.
NFLX Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.9%0.0pp | 51.9%+1.8pp | 45.9%+2.2pp | 46.5%-1.4pp | 51.9%+6.1pp | 50.1%+3.2pp | 43.7%+3.8pp | 47.9%+5.6pp |
| Operating Margin | 33.4%-0.7pp | 32.3%+0.6pp | 24.5%+2.4pp | 28.2%-1.4pp | 34.1%+6.8pp | 31.8%+3.7pp | 22.2%+5.2pp | 29.6%+7.2pp |
| Net Margin | 27.1%-1.1pp | 43.1%+15.7pp | 20.1%+1.8pp | 22.1%-1.9pp | 28.2%+5.8pp | 27.4%+2.5pp | 18.2%+7.6pp | 24.1%+4.4pp |
| Return on Equity | 11.3%-1.2pp | 17.0%+4.9pp | 9.1%+1.5pp | 9.8%-0.6pp | 12.5%+2.8pp | 12.0%+1.1pp | 7.5%+3.0pp | 10.4%+2.8pp |
| Return on Assets | 5.8%-0.1pp | 8.7%+3.1pp | 4.3%+0.9pp | 4.6%+0.1pp | 5.9%+1.5pp | 5.5%+0.8pp | 3.5%+1.6pp | 4.5%+1.1pp |
| Current Ratio | 1.14-0.2x | 1.41+0.2x | 1.190.0x | 1.33+0.2x | 1.34+0.4x | 1.20+0.1x | 1.22+0.1x | 1.13-0.2x |
| Debt-to-Equity | 0.39-0.2x | 0.43-0.2x | 0.51-0.1x | 0.56-0.1x | 0.580.0x | 0.580.0x | 0.56-0.1x | 0.620.0x |
| Asset Turnover | 0.210.0x | 0.200.0x | 0.220.0x | 0.210.0x | 0.210.0x | 0.200.0x | 0.190.0x | 0.190.0x |
| FCF Margin | 12.1%-8.3pp | 41.6%+16.3pp | 15.5%+2.1pp | 23.1%+0.8pp | 20.5%+7.8pp | 25.2%+2.4pp | 13.5%-4.4pp | 22.3%+0.2pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Netflix Inc NFLX | FY2025 | $45.2B | $11.0B | 24.3% | $325.8B | 73/100 |
| Walt Disney Company DIS | FY2025 | $94.4B | $12.4B | 13.1% | $181.8B | 51/100 |
| Warner Bros. Discovery WBD | FY2025 | $37.3B | $727.0M | 1.9% | $70.8B | 27/100 |
| News Corp NWS | FY2026 | $9.0B | $573.0M | 6.3% | $18.2B | 38/100 |
| Live Nation Entertainment Inc LYV | FY2025 | $25.2B | $496.0M | 2.0% | $40.4B | 46/100 |
| Fox Corp FOX | FY2026 | $17.1B | $1.7B | 10.1% | $24.6B | 46/100 |
Where Netflix Inc Ranks
Frequently Asked Questions
What is Netflix Inc's annual revenue?
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.
How fast is Netflix Inc's revenue growing?
Netflix Inc (NFLX) revenue grew by 15.9% year-over-year, from $39.0B to $45.2B in fiscal year 2025.
Is Netflix Inc profitable?
Yes, Netflix Inc (NFLX) reported a net income of $11.0B in fiscal year 2025, with a net profit margin of 24.3%.
What is Netflix Inc's EBITDA?
Netflix Inc (NFLX) had EBITDA of $13.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Netflix Inc have?
As of fiscal year 2025, Netflix Inc (NFLX) had $9.0B in cash and equivalents against $13.5B in long-term debt.
What is Netflix Inc's gross margin?
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.
What is Netflix Inc's operating margin?
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.
What is Netflix Inc's net profit margin?
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.
What is Netflix Inc's return on equity (ROE)?
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.
What is Netflix Inc's free cash flow?
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.
What is Netflix Inc's operating cash flow?
Netflix Inc (NFLX) generated $10.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Netflix Inc's total assets?
Netflix Inc (NFLX) had $55.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Netflix Inc's capital expenditures?
Netflix Inc (NFLX) invested $688.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Netflix Inc spend on research and development?
Netflix Inc (NFLX) invested $3.4B in research and development during fiscal year 2025.
What is Netflix Inc's current ratio?
Netflix Inc (NFLX) had a current ratio of 1.19 as of fiscal year 2025, which is considered adequate.
What is Netflix Inc's debt-to-equity ratio?
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.
What is Netflix Inc's return on assets (ROA)?
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.
What is Netflix Inc's P/E ratio?
Netflix Inc (NFLX) trades at 23.9x earnings, its market capitalization divided by net income of $13.6B net income, trailing 12 months to June 30, 2026. The market capitalization is $325.8B as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Netflix Inc's price-to-sales ratio?
Netflix Inc (NFLX) trades at 6.7x sales, its market capitalization divided by revenue of $48.4B revenue, trailing 12 months to June 30, 2026. The market capitalization is $325.8B as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Netflix Inc's Altman Z-Score?
Netflix Inc (NFLX) has an Altman Z-Score of 9.46, 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.
What is Netflix Inc's Piotroski F-Score?
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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Netflix Inc's earnings high quality?
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.
Can Netflix Inc cover its interest payments?
Netflix Inc (NFLX) has an interest coverage ratio of 17.16x, 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.
How financially healthy is Netflix Inc?
Netflix Inc (NFLX) scores 73 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.