Communication Services · NASDAQ: NFLX
Netflix: how the business works
Netflix sells monthly subscriptions to TV series, films, games and live programming, and sells ads, with revenue of $45.2 billion in FY2025.
By Hardik Bhandare · Checked against filings:
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Netflix, Inc. · Los Gatos, California · Founded 1997
Last updated
- Revenue, FY2025
- $45.2B
- Operating income, FY2025
- $13.3B
- Net income, FY2025
- $11.0B
- Paid memberships, Dec 31, 2024 (last count reported)
- 301.63M
- Incorporated
- 1997
The short version
Netflix in 5 points
1 · What it sells
Netflix sells monthly streaming subscriptions to series, films, games and live programming, plus ads on one plan, with $45.2 billion of revenue in FY2025.
2 · Who pays it
Netflix does not disclose its subscriber and advertiser split, but by region members and advertisers paid 44.2% of FY2025 revenue in the United States and Canada, 32.1% in Europe, the Middle East and Africa, 11.9% in Latin America and 11.8% in Asia-Pacific.
3 · What it keeps from $100
Of every $100 that came in during FY2025, Netflix kept $24.2 as net income; per $100 of revenue, operating income was $29.5 that year, and in the first nine months of 2026 net income was $32.8, including a $2.8 billion termination fee with no after-tax figure given, against $33.5 of operating income.
4 · Where the operating profit comes from
Netflix has one operating segment and does not split profit by region or product, so its $13.3 billion of FY2025 operating income cannot be traced to a source; its largest cost was $16.4 billion of content amortization.
5 · The one thing to watch
View hours rose 2% in the first half of 2026 while revenue rose 14.7%, and Netflix said on Jul 16, 2026 that it will publish its viewing report once a year from 2027.
Sources: From Netflix's FY2025 10-K, Q3 2026 10-Q and shareholder letters · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Netflix's money go?
Netflix · FY2025
Receipt for every $100
| Content amortization (shows and films) | $36.2 |
|---|---|
| Other cost of revenues | $15.1 |
| Sales and marketing | $7.3 |
| Technology and development | $7.5 |
| General and administrative | $4.2 |
| Interest | $1.7 |
| Income tax | $3.8 |
| Kept as net income | $24.2 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue plus interest and other income): each line = line ÷ $45.4 billion × 100.
Each week: one company explained in 5 points, picked by earnings date.
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02The business in one line
What does Netflix do?
People pay Netflix a monthly fee and advertisers pay to reach some of them; the largest cost is shows and films, and what's left is profit.
- In FY2025 the United States and Canada brought in 44.2% of revenue, Europe, the Middle East and Africa 32.1%, Latin America 11.9% and Asia-Pacific 11.8%.
- Of every $100 that came in during FY2025, $36.2 went on content amortization (the cost of titles, spread over time) and $24.2 was left as net income.
03Who pays it
Who pays Netflix?
United States and Canada
44%
of revenue
$20.0 billion of FY2025 revenue. Average revenue per paying membership was $17.20 a month in FY2024, the last year reported.
Europe, Middle East and Africa
32%
of revenue
$14.5 billion of FY2025 revenue, and $10.96 a month per paying membership in FY2024.
Latin America
12%
of revenue
$5.4 billion of FY2025 revenue, and $8.24 a month per paying membership in FY2024.
Asia-Pacific
12%
of revenue
$5.4 billion of FY2025 revenue, and $7.29 a month per paying membership in FY2024.
Subscribers versus advertisers
Not disclosed
Netflix does not disclose this split. The regional shares above include both. It said only that ad revenue was over $1.5 billion in FY2025.
- United States and Canada44%
- Europe, Middle East and Africa32%
- Latin America12%
- Asia-Pacific12%
How spread out the customers are
Netflix sells mainly to individual members. Its filings disclose no customer concentration.
04Why it makes money
Why does Netflix make money?
Revenue has grown faster than content costs, so more of each dollar is left over.
Revenue grew 52.1% from FY2021 to FY2025, while content amortization grew 34.3%. It fell from $41.2 to $36.3 per $100 of revenue. Netflix's 10-K calls its content costs "largely fixed" and says slower growth may hurt its margins.
Operating income per $100 of revenue
$20.9$29.5
FY2021 to FY2025
- Members pay monthly fees and advertisers pay for ads
- Netflix pays for series, films, games and live events
- The cost of each title is spread over up to ten years
- Revenue above that content bill lifts operating income
- Cash funds more content and share buybacks
- New titles aim to keep members and sign up others
↺ Step 6 feeds back into step 1.
05Business segments · FY2025
Which businesses make up Netflix?
United States and Canada
44%Netflix reports one operating segment, so these are regions, with no profit shown. 89.63 million paid memberships at Dec 31, 2024, the last count reported.
Revenue $20.0B
Europe, Middle East and Africa
32%101.13 million paid memberships at Dec 31, 2024.
Revenue $14.5B
Latin America
12%53.33 million paid memberships at Dec 31, 2024.
Revenue $5.4B
Asia-Pacific
12%57.54 million paid memberships at Dec 31, 2024. The chart leaves out DVD rentals, which ended in 2023 ($182.3 million in FY2021).
Revenue $5.4B
How the mix changed
- United States and Canada
- Europe, Middle East and Africa
- Latin America
- Asia-Pacific
Revenue by segment, FY2021 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Netflix done?
Revenue
$45.2BFY2025
Revenue rose every year, from $29.7 billion in FY2021 to $45.2 billion in FY2025, and Q3 FY2026 brought $12.9 billion.
US$
See the numbers
Net profit
$11.0BFY2025
Net income rose from $4.5 billion in FY2022 to $11.0 billion in FY2025; Q1 FY2026's $5.3 billion includes a $2.8 billion termination fee with no after-tax figure given, and EPS is split-adjusted: FY2021 ($11.24), FY2022 ($9.95, or $0.995, shown as $1.00) and Q1 to Q3 FY2024 ($5.28, $4.88, $5.40) are as filed ÷ 10, a Cityfort calculation from FY2022 10-K and Q3 FY2024 earnings release.
US$
See the numbers
Profit kept per $100 of revenue
$24.3FY2025
Net income per $100 of revenue rose from $14.2 in FY2022 to $24.3 in FY2025; in the first nine months of 2026 it was $32.8 with the termination fee, against operating income of $33.5 per $100.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$9.5BFY2025
Free cash flow (cash from operations minus purchases of property and equipment) rose from −$132.0 million in FY2021 to $9.5 billion in FY2025.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31; Netflix's fiscal year is the calendar year, so Q3 FY2026 is July to September 2026). Net profit is the share belonging to the company's owners.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Netflix, and did they deliver?
Ted Sarandos
Co-Chief Executive Officer · since 2020
Co-CEO since 2020. 2025 total pay $53,905,972.
Greg Peters
Co-Chief Executive Officer · since 2023
Co-CEO since Jan 13, 2023. 2025 total pay $53,187,307, against a median employee's $211,201 (a ratio of 252 to 1).
Spencer Neumann
Chief Financial Officer
David Hyman
Chief Legal Officer
Jay Hoag
Chairman of the board · since 2026
Independent director, Lead Independent Director since 2012 and founding general partner of TCV. Chairman from Jun 4, 2026.
What they said, and what happened
1 missed · 4 delivered · 1 partly delivered · 2 too early to tell
Said on Jul 17, 2025
Netflix forecast Q3 FY2025 revenue of $11,526 million and an operating margin of 31.5%.
MissedWhat happened
Reported revenue of $11,510 million and a margin of 28.2%, after an expense of about $619 million in Brazil that was not in the forecast.
Said on Oct 21, 2025
Netflix forecast Q4 FY2025 revenue of $11,960 million and an operating margin of 23.9%.
DeliveredWhat happened
Reported revenue of $12,051 million and a margin of 24.5%.
Said on Jan 20, 2026
Netflix forecast Q1 FY2026 revenue of $12,157 million and an operating margin of 32.1%.
DeliveredWhat happened
Reported revenue of $12,250 million and a margin of 32.3%.
Said on Apr 16, 2026
Netflix forecast Q2 FY2026 revenue of $12,574 million and an operating margin of 32.6%.
Partly deliveredWhat happened
Reported revenue of $12,560 million, just under the forecast, and a margin of 33.4%, above it.
Said on Jul 16, 2026
Netflix forecast Q3 FY2026 revenue of $12,860 million and an operating margin of 33.2%.
DeliveredWhat happened
Reported revenue of $12,874 million and a margin of 34.6%. Netflix said the margin beat was "primarily due to the timing of expenses".
Said on Jan 21, 2025
Netflix said in January and April 2025 that it expected a rough doubling of ad revenue in FY2025.
DeliveredWhat happened
Netflix said ad revenue rose more than 2.5 times, to over $1.5 billion.
Said on Jan 20, 2026
Netflix said in January 2026 that it expected ad revenue to roughly double in FY2026, and about $3 billion by July 2026.
Too early to tellWhat happened
On Oct 20, 2026 Netflix lowered this to about $2.7 billion. FY2026 results are not out yet.
Said on Oct 20, 2026
Netflix forecast FY2026 revenue of $51.1 billion, an operating margin of 31.5% and free cash flowCash from operations minus spending on buildings and equipment. Learn more of about $12.0 billion.
Too early to tellWhat happened
The margin forecast includes about 30 basis points (0.3 points) of cost from Q4 headcount reductions. FY2026 results are not out yet.
08What could go wrong
What could go wrong for Netflix?
- Execution
Content bills are large and largely fixed
Netflix had $25.2 billion of content obligations at Sep 30, 2026, with $11.8 billion due within a year. Its 10-K says slower growth may not let it cut spending in step.
Watch Content obligations and content amortization in each 10-Q.
- Competition
Viewing grows slowly while rivals compete for screen time
View hours rose 2% in the first half of 2026, against 14.7% revenue growth (Cityfort calculation from Q2 FY2026 10-Q). Netflix acknowledged investor concern on Oct 20, 2026. It names Alphabet, Amazon, Apple, Comcast, Disney, Meta, Roblox and TikTok as rivals.
Watch Netflix's annual What We Watched report from 2027, and its share of US TV time.
- Execution
Advertising is still small and its forecast was cut
Netflix's 10-K says it has limited experience in advertising. On Oct 20, 2026 it lowered its FY2026 ad revenue forecast to about $2.7 billion from about $3 billion.
Watch Ad revenue change in each 10-Q, and the ad revenue Netflix states for FY2026.
- Other
Quarterly margins swing
Operating margin was 34.6% in Q3 FY2026 and 28.2% in Q3 FY2025, which held about $619 million of Brazil expense. Netflix forecast 26.0% for Q4, including about 120 basis points (1.2 points) of headcount cost.
Watch Q4 FY2026 operating margin against the 26.0% forecast. Q4 was the lowest quarter in FY2024 and FY2025.
- Legal
Brazil tax dispute
Netflix recorded about $619 million of cumulative non-income tax expense in Q3 FY2025, saying a loss is now probable. Netflix said on Jan 20, 2026 that a deposit of about $700 million had moved to 2026. Its 10-K of Jan 23, 2026 says it does not expect a material effect on future results.
Watch The commitments and contingencies note in each 10-Q and 10-K.
- Currency
Exchange rates
Currencies other than the US dollar were 56% of FY2025 revenue and 31% of operating expenses. €4,700 million of Netflix's notes are remeasured into dollars each quarter.
Watch Growth excluding currency moves against reported growth in each letter.
- Debt
Debt falling due
Carrying debt was $15.1 billion at Sep 30, 2026. $3,194 million of principal and interest falls due within 12 months, and Netflix issued $1 billion of notes in July 2026 to fund a Q4 maturity.
Watch Debt and cash in each 10-Q.
- Technology
Reliance on Amazon Web Services
Netflix says it relies on Amazon Web Services to run parts of its service, and that a disruption would harm its business. Amazon also competes with Netflix.
Watch Risk factors in each 10-K.
09Both sides
What do supporters and critics point to?
What supporters point to
- Operating margin rose from 20.6% in FY2023 to 29.5% in FY2025, and was 34.6% in Q3 FY2026.
- Revenue rose every year from FY2021 to FY2025, and grew 11.8% in Q3 FY2026.
- Cash from operations was $10.1 billion in FY2025, up from $392.6 million in FY2021.
- Netflix's share count fell from 4,222.2 million at Dec 31, 2025 to 4,106.3 million at Sep 30, 2026.
- Netflix said on Oct 20, 2026 that member response to its 2026 price increases matched earlier changes and its expectations.
What critics point to
- View hours rose 2% in the first half of 2026, while revenue rose 14.7%.
- Netflix stopped reporting memberships from Q1 FY2025, and said on Jul 16, 2026 that it will publish its viewing report once a year from 2027.
- Netflix lowered its FY2026 ad revenue forecast to about $2.7 billion from about $3 billion on Oct 20, 2026.
- Net income of $14.8 billion in the 12 months to Sep 30, 2026 includes the $2.8 billion fee, with no after-tax figure given.
- Content obligations were $25.2 billion at Sep 30, 2026, of which $19.6 billion is not on the balance sheet.
10What to watch next
What should you watch next at Netflix?
Next event
Q4 FY2026 results
Date not announced yet.
Q4 margin against the 26.0% forecast
Netflix's Oct 20, 2026 forecast includes about 120 basis points (1.2 points) of headcount cost. Q4 was the lowest-margin quarter in FY2024 and FY2025.
FY2026 ad revenue against about $2.7 billion
Netflix lowered this forecast from about $3 billion on Oct 20, 2026. Netflix said that day the ads plan will reach 15 new countries in 2027.
View hours in the 2027 report
They rose 2% in the first half of 2026. Netflix said on Oct 20, 2026 that it seeks to accelerate this growth, and said on Jul 16, 2026 that it will report it once a year from 2027.
11Key facts
Key facts about Netflix
- What does Netflix do?
- Netflix sells monthly streaming subscriptions to TV series, films, games and live programming, and sells ads on its ad-supported plan. Netflix's revenue was $45.2 billion in FY2025 (calendar 2025).
- How does Netflix make money?
- Netflix makes most of its money from monthly subscription fees, and also earns from ads, consumer products and experiences, and other sources. Netflix gives no exact split, but said ad revenue was over $1.5 billion of its $45.2 billion revenue in FY2025.
- What is Netflix's business model?
- Netflix's business model is to collect monthly fees and ad money, spend the largest share on content, and keep the rest. In FY2025 Netflix had $45.2 billion of revenue, $16.4 billion of content amortization and $13.3 billion of operating income.
- Is Netflix profitable?
- Yes. Netflix had operating income of $13.3 billion and net income of $11.0 billion in FY2025, on revenue of $45.2 billion. Netflix's net income rose every year from FY2022 ($4.5 billion).
- What is Netflix's revenue by segment?
- Netflix reports one operating segment and splits revenue only by region. In FY2025 Netflix earned $20.0 billion (44.2%) in the United States and Canada, $14.5 billion (32.1%) in Europe, the Middle East and Africa, $5.4 billion (11.9%) in Latin America and $5.4 billion (11.8%) in Asia-Pacific. It reports no profit by region.
- Who owns Netflix?
- Netflix's officers and directors as a group held 1.24% of its shares on Apr 6, 2026, a count that includes Reed Hastings, who left the board on Jun 4, 2026. Vanguard Capital Management reported 7.49% as of Mar 31, 2026, and the proxy lists BlackRock at 7.34% as of Dec 31, 2023.
- How much does Netflix earn from subscriptions?
- Netflix does not report an exact subscription revenue figure. Netflix's subscription revenue rose $1,057 million in Q3 FY2026 from a year earlier, and its plans ranged from the US dollar equivalent of $1 to $37 per month on Sep 30, 2026.
- How much does Netflix earn from advertising?
- Netflix does not report an exact annual advertising figure. Netflix said ad revenue rose more than 2.5 times to over $1.5 billion in FY2025, and its 10-Q shows ad revenue up $864 million in the first nine months of 2026.
- Who are Netflix's customers?
- Netflix's customers are individual members who pay monthly, plus advertisers. Netflix last reported an exact count of 301.63 million paid memberships at Dec 31, 2024, and said it crossed 325 million in Q4 FY2025.
- Why was Netflix's net income so high in Q1 FY2026?
- Netflix's net income was $5.3 billion in Q1 FY2026 (January to March 2026), up from $2.9 billion a year earlier, and included a $2.8 billion termination fee from its ended Warner Bros. Discovery deal. Netflix gives no after-tax figure for the fee. Operating income, which excludes it, was $4.0 billion.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does Netflix sell?
Streaming plans ($1 to $37 a month)
Monthly plans that vary by country and features. Prices ranged from the US dollar equivalent of $1 to $37 per month on Sep 30, 2026.
Ad-supported plan ($8.99 in the US)
A subscription that also shows ads. Netflix said it was over 60% of Q1 FY2026 sign-ups in countries that have it.
Extra member accounts ($2 to $10 a month)
A paid add-on to a plan, priced from the US dollar equivalent of $2 to $10 per month on Sep 30, 2026.
Advertising (over $1.5B in FY2025)
Brands pay to show ads on the service. Netflix states this figure in its letter; its filings give no exact annual number.
Live programming
Netflix said on Jul 16, 2026 it expected live events to be just over 5% of 2026 content spend and about 1% of view hours.
Consumer products and experiences
Netflix also earns from these and other sources. Its 10-Q says other sources did not materially affect total revenue in 2026 to date.
What it does
- Does: Charges members a monthly fee that varies by country and plan
- Does: Sells ads shown on its ad-supported plan
- Does: Produces its own titles and licenses others, including from rivals such as Disney
- Does: Buys back its own shares
What it does not do
- Does not: Does not report membership counts or revenue per member, since Q1 FY2025
- Does not: Does not give an exact split of revenue between subscribers and advertisers
- Does not: Does not report profit by region or by product
- Does not: Does not rent DVDs: that business ended in 2023
- Does not: Does not own Warner Bros.: that deal ended on Feb 27, 2026
13How the money flows
13How the money flows · FY2025
How does money flow through Netflix?
Money in
- Revenue$45.2B
- Interest and other income$173M
The company
Netflix
$45.4B came in
Money out
- Content amortization (shows and films)$16.4B
- Other cost of revenues (incl. about $619M Brazil tax expense)$6.9B
- Sales and marketing$3.3B
- Technology and development$3.4B
- General and administrative$1.9B
- Interest and income tax$2.5B
- Net income$11.0B
- Members and advertisers paid Netflix $45.2 billion in FY2025.
- Shows and films took the most: $16.4 billion of content amortization, the cost of titles spread over up to ten years.
- Other costs of the service took $6.9 billion, and marketing, technology and administration took $8.6 billion.
- That left $13.3 billion of operating income.
- After $776.5 million of interest, $172.5 million of other income and $1.7 billion of tax, $11.0 billion was net income.
14What it needs to run
14What it needs to run
What does Netflix need to run?
A library of titles
Content assets were $32.8 billion at Dec 31, 2025: $12.1 billion licensed and $20.6 billion produced.
Future content deals
Netflix had $25.2 billion of content obligations at Sep 30, 2026, of which $19.6 billion is not on the balance sheet.
Cloud computing
Netflix relies on Amazon Web Services to run parts of its service, and names this in its risk factors.
People
About 16,000 full-time employees at Dec 31, 2025.
15Where it sells
15Where it sells · FY2025
Where does Netflix sell?
- United States41%
- Outside the United States59%
16Competitors and what protects it
16Competitors and what protects it
Who does Netflix compete with?
Alphabet (YouTube)
Netflix names Alphabet as a competitor, and says YouTube has added live professional sports and will host the Oscars from 2029.
Amazon
Netflix names Amazon as a competitor, and says it owns the MGM Studios library and shows Thursday Night Football and NBA games.
Disney
Netflix names Disney as a competitor, and also has a licensing deal bringing Disney series and films to its service.
Meta
Netflix names Meta as a competitor, and says Instagram is bringing Reels to TVs with a new app.
TikTok
Netflix named TikTok in its competitive set on Apr 16, 2026, along with Apple, Comcast, Roblox and local media companies.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Size of content spending4 of 5
Cash content spend was $17.7 billion in FY2025 (Cityfort calculation from FY2025 10-K: additions $17,096.6M + fall in content liabilities $610.8M), and content assets were $32.8 billion at Dec 31, 2025.
- Paying members4 of 5
Netflix reported 301.63 million paid memberships at Dec 31, 2024, the last exact count, and said it crossed 325 million in Q4 FY2025.
- Reach across countries3 of 5
55.8% of FY2025 revenue came from outside the United States and Canada. Netflix says non-English titles are more than a third of viewing.
- Ability to raise prices3 of 5
Netflix said on Oct 20, 2026 that member response to its 2026 price increases matched earlier changes and its expectations. Its filings show no price-by-price data.
Weak spot
Slow growth in viewing
View hours rose 1.5% in 2025 and 2% in the first half of 2026, and Netflix says rivals are adding sports and moving onto TV screens.
17Where growth could come from
17Where growth could come from
Where could Netflix's growth come from?
Netflix said on Oct 20, 2026 that it expected Q4 FY2026 revenue of $13,442 million, an operating margin of 26.0% and diluted EPS of $0.67. It expected FY2026 revenue of $51.1 billion, up 13%, and an operating margin of 31.5%.
Subscription fees
Working+$1,057M in Q3 FY2026
The 10-Q credits more memberships and higher prices. Netflix said on Oct 20, 2026 that subscription growth beat its expectations.
Status: Working, on track against what the company said.
Advertising
Behind$2.7B expected for 2026
Netflix said on Oct 20, 2026 it expected about $2.7 billion, down from about $3 billion, because some ad products rolled out slower than expected. Ad revenue rose $256 million in Q3 FY2026.
Status: Behind, behind the company's own plan.
Ads plan in more countries
New15 new countries in 2027
Netflix said on Oct 20, 2026 that the first launches come in March 2027: nine countries in Europe, the Middle East and Africa, plus Colombia, Peru and New Zealand.
Status: New, recently announced.
Licensed titles from other studios
NewNew Disney licensing deal
Netflix also cites about 20 shows from Paramount, Universal films and a partnership with TF1 in France.
Status: New, recently announced.
Live programming
EarlyJust over 5% of content spend
Netflix said on Jul 16, 2026 it expected this for 2026, with about 1% of view hours, and that live events were six of its top 10 sign-up days in five years.
Status: Early, too early to judge.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
18The company's own measures (non-GAAP)
18The company's own measures · FY2025 and 2026
What do Netflix's own measures show?
Official (GAAP): Net cash from operating activities, FY2025
$10.1B
Company's own measure: Free cash flow, FY2025 (Netflix's measure)
$9.5B
Netflix subtracts purchases of property and equipment. FY2021 is the one year that differs from the table above: Netflix's own figure was −$158.9 million, as it also deducted the change in other assets.
Official (GAAP): Net cash from operating activities, Q1 FY2026
$5.3B
Company's own measure: Free cash flow, Q1 FY2026 (Netflix's measure)
$5.1B
Both include the $2.8 billion termination fee, received in cash. Netflix said Q2 FY2026 free cash flow reflected higher cash tax payments, due in part to the fee.
Official (GAAP): Net cash from operating activities, Q3 FY2026
$3.2B
Company's own measure: Free cash flow, Q3 FY2026 (Netflix's measure)
$2.9B
Same definition: cash from operations minus purchases of property and equipment.
Official (GAAP): Total debt, carrying value, Sep 30, 2026
$15.1B
Company's own measure: Net debt, Sep 30, 2026 (Netflix's measure)
$7.1B
Netflix adds back $59.3 million of issuance costs and discount and a $145.2 million hedge adjustment, then subtracts $8,194.3 million of cash and $28.7 million of short-term investments.
Official (GAAP): Reported revenue growth, Q3 FY2026
11.8%
Company's own measure: Revenue growth excluding currency moves, Q3 FY2026
11.0%
Netflix removes the effect of exchange-rate changes.
Official (GAAP): Reported operating margin, FY2025
29.5%
Company's own measure: Operating margin at Jan 1, 2025 exchange rates, FY2025
29.4%
Netflix recalculates the year at Jan 1, 2025 exchange rates.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Letter to Shareholders, Q4 2025 (Form 8-K, Ex. 99.1); Form 10-K for fiscal year 2025; Form 10-K for fiscal year 2022 and 4 more
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
19Financial strength and debt
19Financial strength · Sep 30, 2026
How much debt does Netflix have?
- Total debt$15.1B
- Cash and investments$8.2B
- Net debt (debt minus cash)$6.9B
- Net worth (shareholders' money)$29.3B
- Debt to equity
- 0.52×
- $ of debt for every $1 of shareholders' money
- Interest cover
- 18.2×
- how many times operating profit covers interest
- Debt is the carrying value on the balance sheet, $15.1 billion. Principal at par is $15.3 billion. Net figures here are a Cityfort calculation from Q3 FY2026 10-Q; Netflix's own net debt is under "its own measures".
- Leases are not counted as debt here.
- Interest cover uses the 12 months to Sep 30, 2026: operating income of $15.6 billion ÷ interest expense of $856.9 million.
- $3,194 million of principal and interest on the notes falls due in the 12 months after Sep 30, 2026, including $1 billion of 4.375% notes due in November 2026.
- Content obligations of $25.2 billion are separate: $5.6 billion is on the balance sheet and $19.6 billion is not.
- Netflix said in January 2026 that it remains committed to an investment-grade rating. This page has no rating report, because none is on EDGAR.
20Who owns it
20Who owns it · ownership as of Apr 6, 2026
Who owns Netflix?
- Officers and directors (as a group), shares
- 1.2%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q for the quarter ended Sep 30, 2026; Proxy statement (DEF 14A) for the 2026 annual meeting; Schedule 13G: Vanguard Capital Management, as of Mar 31, 2026 and 3 more
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
21What it does with profit
21What it does with profit
What does Netflix do with its profit?
Buyback · Dec 31, 2023
Stock repurchased in FY2023.
$6.0B
Buyback · Dec 31, 2024
Stock repurchased in FY2024.
$6.3B
Buyback · Dec 31, 2025
Stock repurchased in FY2025.
$9.1B
Buyback · Mar 31, 2026
Stock repurchased in Q1 FY2026. Netflix had paused buybacks in January 2026 to help fund the Warner Bros. deal.
$1.3B
Buyback · Jun 30, 2026
Stock repurchased in Q2 FY2026.
$4.7B
Buyback · Sep 30, 2026
63.9 million shares repurchased in Q3 FY2026, which Netflix calls its largest quarter of repurchases.
$4.8B
Money raised · Jul 22, 2026
Issued 5.250% senior notes due 2036; Netflix said the money would fund a $1 billion debt maturity in Q4 FY2026.
$1.0B
22Governance signals
22Governance signals
What do Netflix's governance filings show?
- Auditor
- Ernst & Young LLP, since 2012
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- The 2026 proxy reports that Ted Sarandos's son, a film editor, worked on Netflix productions in 2025 and earned more than the $120,000 reporting threshold. It says his pay matched similar roles and union rates.
- Credit rating
- No public credit rating found
Flags to know about
disclosure
Membership numbers no longer reported
Netflix stopped reporting paid memberships and revenue per membership from Q1 FY2025. The last exact count is 301.63 million at Dec 31, 2024.
disclosure
Viewing report moves to once a year
Netflix said on Jul 16, 2026 that it will publish its What We Watched report annually from 2027, in the first quarter.
other
Founder left the board
Co-founder Reed Hastings did not stand for re-election and left on Jun 4, 2026. Netflix says this was not the result of any disagreement. Director Anne Sweeney resigned on Jul 26, 2026, also not due to any disagreement.
other
Director's pre-arranged share sale plan
Director Brad Smith adopted a Rule 10b5-1 planAn insider's trading plan, set up in advance, that buys or sells shares on a schedule. Learn more on Jul 24, 2026, covering up to 60,730 shares (option exercise and sale), expiring Jul 24, 2027.
other
Audit fees
Total fees to Ernst & Young were $11.9 million in 2025 and $11.0 million in 2024, of which audit fees were $8.5 million and $8.1 million.
23What the market paid
23What the market paid · price as of Oct 30, 2026
What did the market pay for Netflix on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Netflix closed at $62.08 on Nasdaq. Times 4,106.3 million shares (Sep 30, 2026) that is a market value of about $254.9 billion (Cityfort calculation from the Oct 30, 2026 Nasdaq closing price and the Q3 FY2026 10-Q cover). P/E is price ÷ earnings per share: 17.9 on diluted EPS of $3.46 for the 12 months to Sep 30, 2026. That EPS includes the $2.8 billion Q1 FY2026 termination fee, for which Netflix gives no after-tax figure.
- Share price
- $62.08
- Market value (market cap)
- $254.9B
- P/E
- 17.9×
Source: NFLX historical closing prices, Oct 19 to Oct 30, 2026; Form 10-Q for the quarter ended Sep 30, 2026; Letter to Shareholders, Q3 2026 (Form 8-K, Ex. 99.1) and 3 more
24How it got here
24How it got here
How did Netflix get here?
1997
Milestone
Incorporated
Netflix was incorporated on Aug 29, 1997 and began operations on Apr 14, 1998.
2002
Milestone
Stock market listing
Netflix's IPO took place on May 23, 2002.
2023
Business-model change
Two CEOs
Greg Peters became co-CEO with Ted Sarandos on Jan 13, 2023, and co-founder Reed Hastings became Executive Chairman.
2023
Milestone
DVD rentals ended
The DVD-by-mail business, $82.8 million of FY2023 revenue, closed that year, leaving streaming as the whole business.
2025
Business-model change
Member counts stopped
From Q1 FY2025 Netflix no longer reports paid memberships or revenue per membership. It said the Q4 FY2025 count crossed 325 million.
2025
Crisis
Brazil tax expense
About $619 million of expense cut Q3 FY2025 operating margin to 28.2%, against a 31.5% forecast.
2025
Milestone
Ten-for-one stock split
Each share became ten on Nov 14, 2025. Every share and per-share figure on this page is adjusted for it.
2025
Business-model change
Warner Bros. deal agreed
In December 2025 Netflix agreed to buy Warner Bros. Discovery's studios and streaming business. It amended the deal to all cash on Jan 19, 2026.
2026
Business-model change
Warner Bros. deal ended
Warner Bros. Discovery deemed a Paramount Skydance proposal superior and Netflix did not revise its offer. The deal ended on Feb 27, 2026, and Netflix received a $2.8 billion fee.
2026
Milestone
Founder left the board
Reed Hastings left on Jun 4, 2026, and Jay Hoag became Chairman.
25Sources and changes
Where every number on this page comes from
Sources (39 documents)
- S1Form 10-K for fiscal year 2025 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 23, 2026
- S2Form 10-K for fiscal year 2024 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 27, 2025
- S4Form 10-K for fiscal year 2022 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 26, 2023
- S5Form 10-K for fiscal year 2021 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 27, 2022
- S6Form 10-Q for the quarter ended Sep 30, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2026
- S7Form 10-Q for the quarter ended Jun 30, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 17, 2026
- S8Form 10-Q for the quarter ended Mar 31, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 17, 2026
- S9Form 10-Q for the quarter ended Sep 30, 2025 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 22, 2025
- S10Form 10-Q for the quarter ended Jun 30, 2025 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 18, 2025
- S11Form 10-Q for the quarter ended Mar 31, 2025 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 18, 2025
- S12Form 10-Q for the quarter ended Sep 30, 2024 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 18, 2024
- S13Form 10-Q for the quarter ended Jun 30, 2024 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 19, 2024
- S14Form 10-Q for the quarter ended Mar 31, 2024 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 22, 2024
- S15Letter to Shareholders, Q3 2026 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 20, 2026
- S16Letter to Shareholders, Q2 2026 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 16, 2026
- S17Letter to Shareholders, Q1 2026 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 16, 2026
- S18Letter to Shareholders, Q4 2025 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 20, 2026
- S19Letter to Shareholders, Q3 2025 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 21, 2025
- S20Letter to Shareholders, Q2 2025 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 17, 2025
- S21Letter to Shareholders, Q1 2025 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 17, 2025
- S22Letter to Shareholders, Q4 2024 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 21, 2025
- S23Letter to Shareholders, Q3 2024 (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 17, 2024
- S25Proxy statement (DEF 14A) for the 2026 annual meeting · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 16, 2026
- S26Form 8-K: Anne Sweeney resigns from the board (Item 5.02) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2026
- S27Form 8-K: $1 billion 5.250% senior notes due 2036 (Item 8.01) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 22, 2026
- S28Form 8-K: 2026 annual meeting votes; Jay Hoag named Chairman (Items 5.07, 8.01) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 5, 2026
- S30Form 8-K: Q1 2026 results; Reed Hastings will not stand for re-election (Items 2.02, 5.02) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 16, 2026
- S31Form 8-K: termination of the Warner Bros. Discovery merger agreement (Item 1.02) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 27, 2026
- S32Form 8-K: amended and restated Warner Bros. Discovery merger agreement (Item 1.01) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 20, 2026
- S33Form 8-K: Warner Bros. Discovery merger agreement (Item 1.01) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 5, 2025
- S34Joint press release on the Warner Bros. Discovery agreement (Form 8-K, Ex. 99.1) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Dec 5, 2025
- S36Form 8-K: ten-for-one stock split announced (Item 8.01) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2025
- S37Form 8-K: charter amendment for the stock split (Item 5.03) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 14, 2025
- S38Form 8-K: Greg Peters co-CEO, Reed Hastings Executive Chairman (Items 2.02, 5.02) · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 19, 2023
- S39Schedule 13G/A: FMR LLC, as of Jun 30, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2026
- S40Schedule 13G: Vanguard Capital Management, as of Mar 31, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S41Schedule 13G/A: The Vanguard Group, event date Mar 13, 2026 · Netflix, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S44EDGAR submissions list for Netflix, Inc. · U.S. SEC (data.sec.gov) · Tier 1: company or exchange filing · Nov 1, 2026
- S45NFLX historical closing prices, Oct 19 to Oct 30, 2026 · Nasdaq · Tier 1: company or exchange filing · Oct 30, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q3 FY2026)
- v1 · Nov 1, 2026First version, through Q3 FY2026 (quarter ended Sep 30, 2026). (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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