Netflix Inc (NFLX) CFO exercises options, sells 2,601 shares on Aug 1
Rhea-AI Filing Summary
Netflix Inc’s Chief Financial Officer Spencer Adam Neumann exercised a non-qualified stock option2,601 shares at an exercise price of $289.29 per share on August 1, 2025, then sold 2,601 shares of common stock in multiple open-market transactions at prices between $1,156.61 and $1,176.48 per share. After these trades, he holds 3,691 shares of Netflix common stock directly. A footnote notes that at least one transaction was made pursuant to a Rule 10b5-1 trading plan adopted on October 29, 2024.
Positive
- None.
Negative
- None.
Insights
TL;DR: CFO converted options, sold shares via 10b5-1; neutral cash-out, limited signalling risk.
The exercise monetises an in-the-money grant worth roughly $3 million gross (2,601 × ≈$1,162). Because the sale was fully covered by the exercised shares, share count dilution is unchanged and the company incurs no cash cost. Remaining ownership of 3,691 shares preserves exposure. Planned nature under Rule 10b5-1 reduces negative interpretation, so I view the filing as operationally immaterial with neutral shareholder impact.
TL;DR: Insider sale sizeable (~41% of holding) but pre-scheduled; governance risk low.
The CFO disposed of about 41 % of his direct stake, a scale investors track for sentiment. However, adherence to Rule 10b5-1 and continued ownership mitigate governance red flags. There is no indication of broader strategic shifts or compliance issues. I classify the event as not materially impactful to Netflix’s governance profile.
Insider Trade Summary
Exercise and Sale: 2,601 shares ($2.27M approx. pre-tax spread)
Exercise and Sale
12 txns
Insider
Neumann Spencer Adam
Role
Chief Financial Officer
Sold
2,601 shs ($3.02M)
Approx. gross sale proceeds
$3.02M
Approx. exercise cost
$752K
Approx. pre-tax spread
$2.27M
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Non-Qualified Stock Option (right to buy) | 2,601 | $0.00 | $0.00 |
| Exercise | Common Stock | 2,601 | $289.29 | $752K |
| Sale | Common Stock | 500 | $1,156.61 | $578K |
| Sale | Common Stock | 601 | $1,157.8674 | $696K |
| Sale | Common Stock | 100 | $1,159.95 | $116K |
| Sale | Common Stock | 400 | $1,161.865 | $465K |
| Sale | Common Stock | 200 | $1,163.275 | $233K |
| Sale | Common Stock | 200 | $1,165.57 | $233K |
| Sale | Common Stock | 100 | $1,168.21 | $117K |
| Sale | Common Stock | 200 | $1,169.93 | $234K |
| Sale | Common Stock | 200 | $1,171.22 | $234K |
| Sale | Common Stock | 100 | $1,176.48 | $118K |
Holdings After Transaction:
Non-Qualified Stock Option (right to buy) — 304 shares (Direct);
Common Stock — 3,691 shares (Direct)
Footnotes (8)
- F1. Transaction made pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on 10/29/2024.
- F2. This transaction was executed in multiple trades at prices ranging from $1,156.03 to $1,156.96. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F3. This transaction was executed in multiple trades at prices ranging from $1,157.36 to $1,158.33. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F4. This transaction was executed in multiple trades at prices ranging from $1,161.35 to $1,162.34. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F5. This transaction was executed in multiple trades at prices ranging from $1,162.90 to $1,163.65. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F6. This transaction was executed in multiple trades at prices ranging from $1,165.34 to $1,165.80. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F7. This transaction was executed in multiple trades at prices ranging from $1,169.75 to $1,170.11. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- F8. This transaction was executed in multiple trades at prices ranging from $1,170.92 to $1,171.52. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
Key Figures
Shares exercised: 2,601 shares
Exercise price: $289.2900 per share
Shares sold: 2,601 shares
+3 more
6 metrics
Shares exercised
2,601 shares
Non-qualified stock option exercise on August 1, 2025
Exercise price
$289.2900 per share
Strike price of option granted September 3, 2019
Shares sold
2,601 shares
Aggregate common stock sold in multiple trades on August 1, 2025
Sale price range
$1,156.6100–$1,176.4800 per share
Weighted-average prices reported for the sale transactions
Post-transaction holdings
3,691 shares
Common stock held directly after the reported transactions
10b5-1 plan adoption date
10/29/2024
Date of Rule 10b5-1 trading plan referenced in a footnote
Key Terms
Non-Qualified Stock Option, Rule 10b5-1 trading plan, weighted average sale price, open market or private transaction
4 terms
Non-Qualified Stock Option financial
"security_title "Non-Qualified Stock Option (right to buy)""
A non-qualified stock option (NSO) is a contract that lets an employee or service provider buy company shares at a fixed price for a set period, like a voucher to purchase stock later at today’s price. It matters to investors because exercising NSOs creates ordinary income for the holder and can increase share count, affecting a company’s earnings and ownership mix; think of it as a future sale that can dilute existing shareholders and has immediate tax consequences for the recipient.
Rule 10b5-1 trading plan regulatory
"Transaction made pursuant to a Rule 10b5-1 trading plan adopted..."
A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.
weighted average sale price financial
"The price reported above reflects the weighted average sale price."
open market or private transaction financial
"Sale in open market or private transaction"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What insider activity did Netflix (NFLX) CFO Spencer Neumann report?
Spencer Neumann exercised options for 2,601 shares and sold 2,601 shares of Netflix stock on August 1, 2025. The transactions involved a non-qualified stock option with a $289.29 strike price and multiple open-market sales at prices around $1,156–$1,176 per share.
What were the terms of the Netflix (NFLX) stock option exercised by the CFO?
The CFO exercised a non-qualified stock option for 2,601 shares of Netflix common stock with a $289.29 per-share exercise price. The option was granted on September 3, 2019 and is scheduled to expire on September 3, 2029.
Were Netflix (NFLX) CFO transactions executed under a Rule 10b5-1 plan?
A footnote states that at least one transaction was made pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on October 29, 2024. Rule 10b5-1 plans pre-arrange trades to help insiders comply with securities laws.