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Saturday 17 October 2026 Export NFLX’s income statement to Excel — free account

Netflix, Inc.

NFLX Communication Services Entertainment

Netflix, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $45.2 billion, up 15.9% from fiscal 2024. In the quarter to June 2026, revenue grew 13.4%, EPS grew 10.2%, free cash flow fell 32.7% and total debt fell 18.2%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; revenue growth for ten consecutive years, operating cash flow growth for three.

70.53 2.08 −2.86%
Market cap
$302.3B
P/E
21.8×
Fwd P/E
22.9×
Dividend yield
—
F-score
7/9
Altman Z
10.96
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Netflix, Inc. (NFLX) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Netflix had a market capitalisation of $300.5 billion as of September 24, 2026. Revenue was $45.2 billion, operating income was $13.3 billion, and net income was $11.0 billion in FY2025. Diluted EPS was $2.53 in FY2025.

In Q2 FY2026, revenue was $12.6 billion, gross profit was $6.5 billion, operating income was $4.2 billion, and net income was $3.4 billion. Diluted EPS was $0.80 in Q2 FY2026. Revenue in the TTM to Q2 FY2026 was $48.4 billion, while net income in the TTM to Q2 FY2026 was $13.6 billion.

Growth

Revenue increased by 15.9% in FY2025 against FY2024 and had a 12.6% compound annual growth rate in FY2022–FY2025. Revenue also had a 12.6% compound annual growth rate in FY2020–FY2025. Diluted EPS grew 27.6% in FY2025 against FY2024, with compound annual growth of 36.5% in FY2022–FY2025 and 33.0% in FY2020–FY2025.

Free cash flow increased 36.7% in FY2025 against FY2024, following compound annual growth of 80.1% in FY2022–FY2025. In Q2 FY2026, revenue of $12.6 billion was up 2.53% against Q1 FY2026 and 13.4% against Q2 FY2025. Diluted EPS of $0.80 in Q2 FY2026 was down 35.0% against Q1 FY2026 and up 11.3% against Q2 FY2025. Free cash flow of $1.5 billion in Q2 FY2026 was lower on both comparisons.

Profitability

Gross margin was 48.5% in FY2025, an increase of 2.4 percentage points in FY2024–FY2025 and 9.6 percentage points in FY2020–FY2025. Operating margin was 29.5% in FY2025, up 2.8 percentage points in FY2024–FY2025 and 11.2 percentage points in FY2020–FY2025. Net margin was 24.3% in FY2025, up 2.0 percentage points in FY2024–FY2025 and 13.3 percentage points in FY2020–FY2025.

Return on equity was 42.8%, return on assets was 20.1%, and return on invested capital was 26.9% in FY2025. In Q2 FY2026, gross margin was 51.9% and operating margin was 33.4%. Industry-median comparisons are not reported.

Balance sheet

Total debt was $13.5 billion, cash and short-term investments were $9.1 billion, and net debt was $4.4 billion in FY2025. Shareholders’ equity was $26.6 billion and working capital was $2.0 billion in FY2025. Total debt declined from $14.7 billion in FY2021 to $13.5 billion in FY2025, while shareholders’ equity increased from $15.8 billion in FY2021 to $26.6 billion in FY2025.

Net debt was $2.7 billion in Q2 FY2026, compared with $1.1 billion in Q1 FY2026. The current ratio was 1.1× and debt to equity was 0.4× in Q2 FY2026.

Cash flow & capital return

Operating cash flow was $10.1 billion, capital expenditure was $688.2 million, and free cash flow was $9.5 billion in FY2025. Free cash flow represented 86.2% of net income in FY2025. Operating cash flow increased 37.9% and free cash flow increased 36.7% in FY2025 against FY2024.

Net share repurchases were $8.5 billion in FY2025. Weighted average shares were 4.2 billion shares in FY2025, compared with 4.4 billion shares in FY2021; the share count changed by −3.62% in FY2020–FY2025. Free cash flow was $1.5 billion in Q2 FY2026, compared with $5.1 billion in Q1 FY2026. Dividend payments are not reported.

Valuation

The P/E was 22.2× as of September 24, 2026, lower than the five-year median P/E of 38.3× over the five fiscal years to FY2025 and the ten-year median P/E of 64.0× over the ten fiscal years to FY2025. The P/S was 6.2× as of September 24, 2026, lower than the five-year median of 8.8× and the ten-year median of 7.4×.

The P/B was 10.0× as of September 24, 2026, lower than the five-year median of 15.0× and the ten-year median of 17.8×. EV/Sales was 6.3× as of September 24, 2026, lower than the five-year median of 8.9× and the ten-year median of 7.8×. EV/Cash flow was 29.3× as of September 24, 2026, lower than the five-year median of 63.4×. Industry-median valuation comparisons are not reported.

What changed since last quarter

Revenue was $12.6 billion in Q2 FY2026, up 2.53% against Q1 FY2026 and up 13.4% against Q2 FY2025. Gross margin was 51.9% in Q2 FY2026, unchanged against both Q1 FY2026 and Q2 FY2025. Operating margin was 33.4% in Q2 FY2026, up 1.1 percentage points against Q1 FY2026 and down 0.7 percentage points against Q2 FY2025.

Diluted EPS was $0.80 in Q2 FY2026, down 35.0% against Q1 FY2026 and up 11.3% against Q2 FY2025. Free cash flow was $1.5 billion in Q2 FY2026, down 70.1% against Q1 FY2026 and down 32.7% against Q2 FY2025. Net debt was $2.7 billion in Q2 FY2026, an increase of $1.6 billion against Q1 FY2026 and a decrease of −$3.4 billion against Q2 FY2025.

Open questions

  • What factors drove the sequential reduction in free cash flow?
  • What explains the change in net debt during the latest quarter?
  • Which operating items contributed to the difference between quarterly gross-margin and operating-margin movements?
  • How are share repurchases funded alongside cash generation and debt management?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.