NETFLIX INC (NFLX) Revenue, Margins & Financial Statements

Revenue growth, profit margins, cash flow, debt, sourced from SEC 10-K / 10-Q filings
Summary

NETFLIX INC (NFLX) reported $45.18B in revenue over the most recent fiscal year on record, up 15.9% year over year. Growth has been accelerating, a +16.2% compound annual rate over the last 7 years on record. Profit is growing faster than sales, usually a sign of improving efficiency or pricing power. Operating margin is the highest of the last 8 years on record. Free cash flow ran 86% of net income in the latest year. Debt exceeds cash & investments by $4.40B.

Profitability
Strong
Operating margin is at its highest point in the last 8 years on record.
Cash Generation
Moderate
Cash generation roughly tracks reported profit.
Balance Sheet
Moderate
Balance sheet is neither notably net-cash nor notably stretched.
Shareholder Returns
Neutral
Share count is roughly stable year over year.
Is Revenue Growth Accelerating or Slowing?

NETFLIX INC's revenue for the fiscal year ended Dec 2025 was $45.18B, an increase of +15.9% compared to the prior year. Is growth accelerating, stable, slowing, or contracting? See the quarterly beat/miss history →

Trend (annual)
Accelerating
7-year CAGR
+16.2%
Fiscal Year EndedRevenue Growth
Dec 2025+15.9%
Dec 2024+15.6%
Dec 2023+6.7%
Dec 2022+6.5%
Dec 2021+18.8%
Dec 2020+24.0%
Dec 2019+27.6%

"Accelerating" / "Slowing" means each of the last 3 years' growth rates moved consistently in that direction, not a subjective call.

Quarterly Revenue Growth

Year-over-year growth by quarter, each quarter compared to the same quarter one year earlier, which avoids the seasonal noise of comparing sequential quarters. NETFLIX INC's most recent quarter grew +13.4% year-over-year, slower than the quarter before it.

Quarter EndedRevenueYoY Growth
Jun 2026$12.56B+13.4%
Mar 2026$12.25B+16.2%
Dec 2025 (derived)$12.05B+17.6%
Sep 2025$11.51B+17.2%
Jun 2025$11.08B+15.9%
Mar 2025$10.54B+12.5%
Dec 2024 (derived)$10.25B+16.0%
Sep 2024$9.82B+15.0%

Net income grew +8.8% year-over-year in the same quarter.

Profit Margins

Profit is growing faster than sales, usually a sign of improving efficiency or pricing power.

Revenue growth
+15.9%
Net income growth
+26.1%
Free cash flow growth
+36.7%
Gross margin
Expanding, 3yr streak
Highest of last 8yrs
Operating margin
Expanding, 3yr streak
Highest of last 8yrs
Margin change (full window)
+19.3pp
NFLX vs. Its Communication Services Peers

Compared against 7 other Communication Services stocks tracked on this site, not the whole market, and small enough that this is directional context, not a definitive benchmark.

Revenue growth vs. sector median
+15.9%
NFLX
+6.6%
sector median (n=7)
Gross margin vs. sector median
+48.5%
NFLX
+79.9%
sector median (n=4)
Why did EPS grow?

EPS +27.8% year over year. A rough breakdown of what drove it (approximate, since EPS is roughly net income divided by share count):

Revenue growth
Margin expansion (profit grew faster than sales)
Share buybacks (fewer shares to divide profit across)
Cash Flow & Free Cash Flow

Accounting profit is not the same as cash in the bank. Here's how NFLX converts revenue into real cash.

For every $100 of revenue
$22
becomes operating cash flow
$21
becomes free cash flow
Cash conversion (OCF / Net Income)
92%
FCF conversion (FCF / Net Income)
86%
Capital intensity (CapEx / OCF)
7%
Balance Sheet & Debt
Net debt
$4.40B
Working capital
$2.04B
Quick ratio
1.19

Total debt has risen for 1 straight year on record.

Share Dilution & Buybacks
Share count, 1yr change
Share count, 3yr change
-1.3%
Spent on buybacks
$9.13B
Capital Allocation

How NFLX deployed cash in the most recent year, across its actual cash-flow-statement uses.

Capital Expenditures$688.22M
Share Buybacks$9.13B
Debt Repayment$1.83B
Financial Red Flags & Strengths

Objective, rule-based checks against the figures above, not a subjective rating.

Watch items
Debt exceeds cash & investments by 4,401,612,000 (raw units).
Strengths
Revenue growth is accelerating (15.9% most recent year).
Operating margin is the highest in the last 8 years on record.
Year in Review
Fiscal Year EndedRevenue GrowthMargin ChangeFCF Growth
Dec 2025+15.9%+2.8pp+36.7%
Dec 2024+15.6%+6.1pp-0.1%
Dec 2023+6.7%+2.8pp+327.9%
Dec 2022+6.5%-3.0pp+1326.4%
Dec 2021+18.8%+2.5pp-106.8%
Dec 2020+24.0%+5.4pp+161.4%
Dec 2019+27.6%+2.8pp-10.0%
Frequently asked questions
Is NFLX's revenue growing?

NETFLIX INC's revenue growth has been accelerating, at +15.9% in the most recent year on record. Over the last 7 years, revenue has compounded at roughly +16.2% annually.

Is NFLX's profit growing faster than its revenue?

Profit is growing faster than sales, usually a sign of improving efficiency or pricing power.

Are NFLX's profit margins improving or declining?

Operating margin has expanded for 3 straight years on record. It is currently the highest of the last 8 years.

Is NFLX's reported profit backed by real cash?

Operating cash flow ran +92% of net income, and free cash flow ran +86% of net income, in the most recent year. Cash generation roughly tracks reported profit.

Does NFLX have more cash than debt?

No, NFLX's total debt exceeds its cash & short-term investments by $4.40B.

What are the biggest financial red flags for NFLX right now?

Debt exceeds cash & investments by 4,401,612,000 (raw units).

Full statements

Every line item as reported, with the annual/quarterly toggle and ratio table.

Line itemDec 31, 2025Dec 31, 2024Dec 31, 2023Dec 31, 2022Dec 31, 2021
Revenue$45.18B$39.00B$33.72B$31.62B$29.70B
Cost of Revenue$23.28B$21.04B$19.72B$19.17B$17.33B
Gross Profit$21.91B$17.96B$14.01B$12.45B$12.37B
Research & Development$3.39B$2.93B$2.68B$2.71B$2.27B
General & Administrative$1.89B$1.70B$1.72B$1.57B$1.35B
Selling & Marketing$3.30B$2.92B$2.66B$2.53B$2.55B
Operating Income$13.33B$10.42B$6.95B$5.63B$6.19B
Nonoperating Income (Expense)$172.46M$266.78M-$48.77M$337.31M$411.21M
Interest Expense$699.83M$706.21M$765.62M
Pretax Income$12.72B$9.97B$6.21B$5.26B$5.84B
Income Tax Expense$1.74B$1.25B$797.41M$772.00M$723.88M
Net Income$10.98B$8.71B$5.41B$4.49B$5.12B
EPS (Basic)$2.58$2.03$1.22$10.10$11.55
EPS (Diluted)$2.53$1.98$1.20$9.95$11.24
Weighted Avg Shares (Basic)4.25B4.30B4.42B444.70M443.15M
Weighted Avg Shares (Diluted)4.34B4.39B4.49B451.29M455.37M

Sourced from SEC filings (10-K / 10-Q). Figures not separately reported by the company are shown as —, not estimated. Quarterly "derived Q4" values are calculated as the full fiscal year total minus the three reported quarters.

Key ratios

Computed from the annual figures above, most recent first.

RatioDec 31, 2025Dec 31, 2024Dec 31, 2023Dec 31, 2022Dec 31, 2021Dec 31, 2020Dec 31, 2019Dec 31, 2018
Gross Margin48.5%46.1%41.5%39.4%41.6%38.9%38.3%36.9%
Operating Margin29.5%26.7%20.6%17.8%20.9%18.3%12.9%10.2%
Net Margin24.3%22.3%16.0%14.2%17.2%11.0%9.3%7.7%
Return on Equity41.3%18.2%24.9%13.3%11.8%10.9%
Current Ratio1.191.221.121.170.951.25
Debt / Equity0.510.560.690.690.931.43
Free Cash Flow$9.46B$6.92B$6.93B$1.62B-$131.97M$1.93B-$3.14B-$2.85B
Figures are sourced directly from NFLX's SEC filings (10-K annual reports and 10-Q quarterly reports) via XBRL data. Classifications above (trend labels, snapshot categories, red flags) use fixed, stated rules applied to these figures, not a subjective or predictive score. This is historical financial data, not investment advice. Read disclaimer →