Detailed financial statements for Netflix, Inc. (NFLX): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Netflix, Inc. serves as a worldwide entertainment provider. Its comprehensive library features television series, motion pictures, documentaries, and mobile games, spanning numerous genres and languages. Members can effortlessly stream this content through a variety of internet-connected devices, including smart TVs, digital media players, cable boxes, and mobile phones.
Analysis Summary
Netflix, Inc. reported revenue of $45.18B in the most recent fiscal year, growing at a 5-year CAGR of 12.6%. Net income reached $10.98B, with a 31.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 49.1%, operating margin 29.7%, net margin 28.2%. Free cash flow grew at 37.4% CAGR over 5 years.
At the current price of $67.50, NFLX trades at a P/E of 21.09 and an ROE of 47.96%. Market capitalisation stands at $281.1B, placing it among large-cap names.
Balance sheet quality for NFLX: current ratio of 1.2, net debt of $5.40B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $9.46B represents 86% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $8.83B | $11.69B | $15.79B | $20.16B | $25.00B | $29.70B | $31.62B | $33.72B | $39.00B | $45.18B |
| Cost of Revenue | $6.03B | $7.66B | $9.97B | $12.44B | $15.28B | $17.33B | $19.17B | $19.72B | $21.04B | $23.28B |
| Gross Profit | $2.80B | $4.03B | $5.83B | $7.72B | $9.72B | $12.37B | $12.45B | $14.01B | $17.96B | $21.91B |
| Research & Development | $852.1M | $1.05B | $1.22B | $1.55B | $1.83B | $2.27B | $2.71B | $2.68B | $2.93B | $3.39B |
| Selling, General & Admin | $1.57B | $2.14B | $3.00B | $3.57B | $3.30B | $3.90B | $4.10B | $4.38B | $4.62B | $5.19B |
| Operating Expenses | $2.42B | $3.19B | $4.22B | $5.11B | $5.13B | $6.17B | $6.81B | $7.05B | $7.54B | $8.58B |
| Operating Income | $379.8M | $838.7M | $1.61B | $2.60B | $4.59B | $6.19B | $5.63B | $6.95B | $10.42B | $13.33B |
| EBITDA | $5.34B | $7.11B | $9.26B | $12.01B | $15.51B | $19.04B | $20.33B | $21.51B | $26.31B | $30.25B |
| Interest Expense | $150.1M | $353.4M | $420.5M | $626.0M | $1.39B | $765.6M | $706.2M | $748.6M | $718.7M | $776.5M |
| Pre-tax Income | $260.5M | $485.3M | $1.23B | $2.06B | $3.20B | $5.84B | $5.26B | $6.21B | $9.97B | $12.72B |
| Income Tax | $73.8M | -$73.6M | $15.2M | $195.3M | $438.0M | $723.9M | $772.0M | $797.4M | $1.25B | $1.74B |
| Net Income | $186.7M | $558.9M | $1.21B | $1.87B | $2.76B | $5.12B | $4.49B | $5.41B | $8.71B | $10.98B |
| EPS | $0.04 | $0.13 | $0.28 | $0.43 | $0.63 | $1.16 | $1.01 | $1.23 | $2.03 | $2.58 |
| EPS (Diluted) | $0.04 | $0.12 | $0.27 | $0.41 | $0.61 | $1.12 | $1.00 | $1.20 | $1.98 | $2.53 |
| Shares Outstanding (Diluted) | $4.39B | $4.47B | $4.51B | $4.52B | $4.54B | $4.55B | $4.51B | $4.49B | $4.39B | $4.32B |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $11.51B | $12.05B | $12.25B | $12.56B |
| Gross Profit | $5.35B | $5.53B | $6.36B | $6.52B |
| Operating Income | $3.25B | $2.96B | $3.96B | $4.19B |
| EBITDA | $7.37B | $7.85B | $11.13B | $4.24B |
| Net Income | $2.55B | $2.42B | $5.28B | $3.40B |
| EPS | $0.60 | $0.57 | $1.25 | $0.81 |
| EPS (Diluted) | $0.59 | $0.56 | $1.23 | $0.80 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.47B | $2.82B | $3.79B | $5.02B | $8.21B | $6.03B | $5.15B | $7.12B | $7.80B | $9.03B |
| Short-term Investments | $266.2M | 0 | 0 | 0 | 0 | 0 | $911.3M | $21.0M | $1.78B | $28.7M |
| Receivables | 0 | 0 | $569.6M | $454.4M | $610.8M | $804.3M | $1.59B | $1.84B | $1.99B | $2.58B |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $5.72B | $7.67B | $9.69B | $6.18B | $9.76B | $8.07B | $9.27B | $9.92B | $13.10B | $13.02B |
| Property, Plant & Equipment | $250.4M | $319.4M | $418.3M | $565.2M | $960.2M | $1.32B | $1.40B | $1.49B | $1.59B | $2.00B |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | $7.27B | $10.37B | $14.95B | $24.50B | $25.38B | $30.92B | $32.74B | $31.66B | $32.45B | $32.78B |
| Total Assets | $13.59B | $19.01B | $25.97B | $33.98B | $39.28B | $44.58B | $48.59B | $48.73B | $53.63B | $55.60B |
| Accounts Payable | $312.8M | $359.6M | $563.0M | $674.3M | $656.2M | $837.5M | $671.5M | $747.4M | $899.9M | $900.6M |
| Short-term Debt | 0 | 0 | 0 | 0 | $499.9M | $699.8M | 0 | $399.8M | $1.78B | $998.9M |
| Total Current Liabilities | $4.59B | $5.47B | $6.49B | $6.86B | $7.81B | $8.49B | $7.93B | $8.86B | $10.76B | $10.98B |
| Long-term Debt | $3.36B | $6.50B | $10.36B | $14.76B | $15.81B | $14.69B | $14.35B | $14.14B | $13.80B | $13.46B |
| Total Liabilities | $10.91B | $15.43B | $20.74B | $26.39B | $28.22B | $28.74B | $27.82B | $28.14B | $28.89B | $28.98B |
| Retained Earnings | $1.13B | $1.73B | $2.94B | $4.81B | $7.57B | $12.69B | $17.18B | $22.59B | $31.30B | $42.28B |
| Total Equity | $2.68B | $3.58B | $5.24B | $7.58B | $11.07B | $15.85B | $20.78B | $20.59B | $24.74B | $26.62B |
| Total Debt | $3.36B | $6.50B | $10.36B | $16.37B | $18.51B | $18.12B | $14.35B | $16.97B | $17.99B | $14.46B |
| Net Debt | $1.63B | $3.68B | $6.57B | $11.35B | $10.31B | $12.09B | $8.29B | $9.84B | $8.41B | $5.40B |
| Working Capital | $1.13B | $2.20B | $3.21B | -$677.2M | $1.96B | -$419.1M | $1.34B | $1.06B | $2.34B | $2.04B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $9.29B | $9.03B | $12.26B | $9.10B |
| Total Assets | $54.93B | $55.60B | $61.02B | $58.45B |
| Total Liabilities | $28.98B | $28.98B | $29.89B | $28.30B |
| Total Equity | $25.95B | $26.62B | $31.13B | $30.15B |
| Total Debt | $14.46B | $14.46B | $14.36B | $14.31B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $186.7M | $558.9M | $1.21B | $1.87B | $2.76B | $5.12B | $4.49B | $5.41B | $8.71B | $10.98B |
| Depreciation & Amortization | $4.92B | $6.33B | $7.66B | $9.32B | $10.92B | $12.44B | $14.36B | $14.55B | $15.63B | $16.76B |
| Stock-based Compensation | $173.7M | $182.2M | $320.7M | $405.4M | $415.2M | $403.2M | $575.5M | $339.4M | $272.6M | $368.4M |
| Change in Working Capital | $192.4M | $59.0M | $293.8M | $43.0M | -$31.9M | -$242.0M | -$758.1M | -$116.1M | -$33.1M | -$456.2M |
| Operating Cash Flow | -$1.47B | -$1.79B | -$2.68B | -$2.89B | $2.43B | $392.6M | $2.03B | $7.27B | $7.36B | $10.15B |
| Capital Expenditure | -$184.8M | -$227.0M | -$212.5M | -$253.0M | -$497.9M | -$524.6M | -$407.7M | -$348.6M | -$439.5M | -$688.2M |
| Acquisitions | -$77.2M | -$53.7M | 0 | 0 | 0 | -$788.3M | -$757.4M | 0 | 0 | -$17.2M |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | -$600.0M | 0 | -$6.05B | -$6.26B | -$9.13B |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$1.66B | -$2.01B | -$2.89B | -$3.14B | $1.93B | -$132.0M | $1.62B | $6.93B | $6.92B | $9.46B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $2.83B | $2.11B | $5.29B | $1.59B |
| Capital Expenditure | -$164.7M | -$239.3M | -$196.1M | -$218.6M |
| Free Cash Flow | $2.66B | $1.87B | $5.09B | $1.37B |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $81.0M | $134.6M | $140.4M | $131.3M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +32.4% | +35.1% | +27.6% | +24.0% | +18.8% | +6.5% | +6.7% | +15.6% | +15.9% | |
| Net Income Growth (YoY) | +199.4% | +116.7% | +54.1% | +47.9% | +85.3% | -12.2% | +20.4% | +61.1% | +26.1% | |
| EPS Growth (YoY) | +193.2% | +115.5% | +53.2% | +47.9% | +84.1% | -12.9% | +21.8% | +65.0% | +27.1% | |
| Shares Change (YoY) | +1.9% | +1.0% | +0.1% | +0.5% | +0.3% | -0.9% | -0.4% | -2.3% | -1.7% | |
| FCF Growth (YoY) | -21.3% | -43.7% | -8.5% | +161.4% | -106.8% | +1,326.4% | +327.9% | -0.1% | +36.7% | |
| Gross Margin | 31.7% | 34.5% | 36.9% | 38.3% | 38.9% | 41.6% | 39.4% | 41.5% | 46.1% | 48.5% |
| Operating Margin | 4.3% | 7.2% | 10.2% | 12.9% | 18.3% | 20.9% | 17.8% | 20.6% | 26.7% | 29.5% |
| EBITDA Margin | 60.4% | 60.8% | 58.6% | 59.6% | 62.0% | 64.1% | 64.3% | 63.8% | 67.5% | 67.0% |
| Net Margin | 2.1% | 4.8% | 7.7% | 9.3% | 11.0% | 17.2% | 14.2% | 16.0% | 22.3% | 24.3% |
| FCF Margin | -18.8% | -17.2% | -18.3% | -15.6% | 7.7% | -0.4% | 5.1% | 20.5% | 17.7% | 20.9% |
| Effective Tax Rate | 28.3% | -15.2% | 1.2% | 9.5% | 13.7% | 12.4% | 14.7% | 12.9% | 12.6% | 13.7% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-0.38 | $-0.45 | $-0.64 | $-0.70 | $0.42 | $-0.03 | $0.36 | $1.54 | $1.58 | $2.19 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $4.29B | $4.32B | $4.35B | $4.38B | $4.41B | $4.43B | $4.45B | $4.42B | $4.30B | $4.23B |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 47.96% |
| Return on Invested Capital | 24.34% |
| Return on Assets | 23.35% |
| Gross Margin | 49.12% |
| Operating Margin | 29.68% |
| Net Margin | 28.22% |
Financial Health
| Debt / Equity | 0.47 |
| Current Ratio | 1.14 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 10.92 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 281.36 | 148.84 | 96.29 | 75.96 | 85.83 | 51.93 | 29.20 | 39.59 | 43.91 | 36.34 |
| P/B | 19.81 | 23.15 | 22.25 | 18.68 | 21.55 | 16.84 | 6.31 | 10.44 | 15.47 | 14.90 |
| P/S | 6.01 | 7.09 | 7.38 | 7.03 | 9.54 | 8.99 | 4.15 | 6.38 | 9.82 | 8.78 |
| Gross Margin | 31.7% | 34.5% | 36.9% | 38.3% | 38.9% | 41.6% | 39.4% | 41.5% | 46.1% | 48.5% |
| Operating Margin | 4.3% | 7.2% | 10.2% | 12.9% | 18.3% | 20.9% | 17.8% | 20.6% | 26.7% | 29.5% |
| Net Margin | 2.1% | 4.8% | 7.7% | 9.3% | 11.0% | 17.2% | 14.2% | 16.0% | 22.3% | 24.3% |
Related companies: DIS · IMAX · LYV · MSGE · NWSA · PLAY · RSVR
Explore sector: Communication Services · Entertainment
More sections of NFLX: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Investment Academy — learn to analyze stocks