Netflix has two co-CEOs, Ted Sarandos and Greg Peters. Co-founder Reed Hastings did not stand for re-election at the June 2026 annual meeting, and Jay Hoag became chairman.

How Netflix Makes Money: Business Model, SWOT & Moat (NFLX)

Q: Is Netflix still growing?

Yes, Netflix is still growing. Revenue rose 15.9% in FY2025 and 14.7% in the four quarters to September 2026. Over ten years, growth averaged 20.9% a year.

⚡What does Netflix do, in 30 seconds?

Netflix runs a paid streaming service, and its revenue comes mainly from monthly membership fees ². Members get its own shows plus licensed films and series ⁵, games ⁴⁵ and live events ²⁰. It took in $45.2bn ^✓ in FY2025, and streaming made up 100% ^✓ of that once rounded.

Revenue, FY2025

$45.2bn^✓

Profit, FY2025

$11.0bn^✓

Sales growth, 4 quarters to 30 Sep 2026

14.7%^✓

Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted), 30 Sep 2026

-$6.9bn^✓

Headquarters

Los Gatos, California ²

Co-founder

Reed Hastings, in 1997 ²¹

Co-CEOs

Ted Sarandos (since 2020) and Greg Peters (since January 2023) ²¹

Employees

About 16,000 full-time at the end of 2025 ²

Countries served

More than 190 ⁴

Fiscal year ends

31 December ²

📱What does Netflix sell?

Netflix reports one business, and its revenue comes mainly from streaming membership fees ². Here is what is inside it, plus the tiny line left over.

📺

Streaming

In FY2025, the Netflix streaming service brought in $45.2bn ^✓. Its revenue comes mainly from monthly membership fees ². At 30 September 2026, plans cost the equivalent of US$1 to US$37 a month, depending on country and features ³. A plan with ads cost $8.99 a month in the US in April 2026 ⁴. Netflix also offers games ⁴⁵ and, since early 2026, video podcasts ⁵.

👥 Members in more than 190 countries ⁴. Netflix crossed 325 million paid memberships in the fourth quarter of 2025 ⁵. Advertisers also pay Netflix for ads on its service ⁶.

🧩

Other

A tiny leftover: total revenue minus the streaming figure the filing tags. It was $0.1bn ^✓ in FY2023 and $0.0bn ^✓ in FY2025. Netflix says money from sources other than membership fees, such as ads, consumer products and live experiences, was not a material part of revenue in 2023, 2024 or 2025 ⁶.

👥 Not broken out in the filing, since Netflix reports one operating segment ².

How the mix has shifted

Share of revenue by business line, by fiscal year. Source: NETFLIX INC 10-K filed 2026-01-23.

💸How does Netflix make money?

Follow the money from left to rightfrom top to bottom: what customers pay for, what it costs to make, and what is left as profit.

Money map (a Sankey diagram): band widths are to scale. Hover a band for the amount. Source: NETFLIX INC 10-K filings.

Netflix took in $45.2bn ^✓ in FY2025. Its cost of revenue was $23.3bn ^✓. What is left is gross profit, the money kept after paying for what was sold. That came to $21.9bn ^✓.

Next come the costs of running the company. Research and development took $3.4bn ^✓, and marketing and admin took $5.2bn ^✓. That left operating profit, the profit from the main business, of $13.3bn ^✓. After tax of $1.7bn ^✓ and other costs, net income was $11.0bn ^✓. Put simply, out of every hundred dollars of revenue, Netflix kept about $24 ^✓ as profit.

Out of every $100 customers paid in FY2025…

$52

$11

$24

Making the products and services $52Research and development $8Selling and admin $11Other costs (interest and losses) $1Income tax $4Profit kept $24

💡

Netflix keeps more of each dollar than it used to. Out of every $100 of revenue, net profit rose from $16 ^✓ in FY2023 to $24 ^✓ in FY2025. Over the same years, cost of revenue fell from $59 ^✓ to $52 ^✓ out of every $100.

⏱️ Netflix by the clock

Spread the FY2025 totals evenly over its 365 days and you get this. Source: NETFLIX INC 10-K [7].

🛒

$124m

in sales every day

⏱️

$348

of profit every second

🔬

$9m

on research every day

🎁

$25m

handed to shareholders every day

📈How is Netflix doing?

Netflix has grown every year for a decade, and its profit margins have climbed. Revenue grew 20.9% ^✓ a year on average from FY2015 to FY2025. It rose in 10 ^✓ of those 10 ^✓ years. Operating margin went from 4.5% ^✓ in FY2015 to 29.5% ^✓ in FY2025. Revenue rose 15.9% ^✓ in FY2025 alone.

The latest four quarters, to 30 September 2026, show growth going on. Revenue reached $49.7bn ^✓, up 14.7% ^✓ on the four quarters before. Operating margin was 31.3% ^✓, and free cash flow was $11.4bn ^✓. During 2025 Netflix stopped reporting how many members it has ⁶. Instead, it now treats revenue and operating margin as its main measures ⁶.

📝 The report card

Netflix earns good marks for growth, profit and cash, a middling mark for steadiness and a weak mark for its balance sheet. Every company is graded on the same fixed scale, so an A means the same thing on every page. The strip shows where Netflix (orange) and its 4 peers land; further right is better.

Growth

Sales growth per year, last 3 fiscal years

12.6% · peer median 8.1%

#1 of 5 in the peer group

CMCSADISAMZN · GOOGLNFLX

A ≥ 15.0%B ≥ 10.0%C ≥ 5.0%D ≥ 0.0%F below 0.0%

Netflix's revenue grew 12.6% ^✓ a year over its last three fiscal years, which earns a B ^✓ on the fixed scale. That ranks it 1 ^✓ of 5 ^✓ in this group, just ahead of Alphabet at 12.5% ^✓. Disney grew 4.5% ^✓ a year, a D ^✓.

Why this measure? (higher is better)

Growing sales is the engine of a business. Mature giants rarely grow fast, so 5% a year already earns a C.

Profitability

Operating margin, last 3 years combined

26.0% · peer median 17.5%

#2 of 5 in the peer group

AMZNDIS · CMCSAGOOGLNFLX

A ≥ 30.0%B ≥ 20.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, Netflix kept 26.0% ^✓ of revenue as operating profit, which earns a B ^✓. Alphabet kept more, at 30.7% ^✓, good for an A ^✓. The peer median is 17.5% ^✓.

Why this measure? (higher is better)

Operating margin is the share of each sales dollar left after running the business. Software and platforms often clear 30%; hardware makers usually sit below 10%.

Cash generation

Free cash flow as a share of sales, last 3 years combined

19.8% · peer median 11.6%

#2 of 5 in the peer group

AMZNDISCMCSAGOOGLNFLX

A ≥ 20.0%B ≥ 15.0%C ≥ 10.0%D ≥ 5.0%F below 5.0%

Over the last three years combined, Netflix turned 19.8% ^✓ of revenue into free cash flow, a B ^✓, just under the top band. Alphabet, at 20.3% ^✓, earns an A ^✓. The peer median is 11.6% ^✓.

Why this measure? (higher is better)

Free cash flow is the cash left after paying for factories, data centres and equipment. It funds dividends, buybacks and new bets.

Balance sheet

Net cash (cash and investments minus borrowings; leases and stakes in other companies not counted) as a share of a year's sales

-12.0% · peer median -15.5%

#3 of 5 in the peer group

CMCSADISAMZN · GOOGLNFLX

A ≥ 20.0%B ≥ 5.0%C ≥ -10.0%D ≥ -30.0%F below -30.0%

At the end of FY2025, Netflix's cash and investments minus its borrowings (leases and stakes in other companies not counted) equalled -12.0% ^✓ of a year's revenue, which earns a D ^✓. In other words, it owes more than it holds in cash. Disney, at -38.5% ^✓, and Comcast, at -72.3% ^✓, owe even more for their size.

Why this measure? (higher is better)

More cash than debt gives a company room to ride out bad years. Some debt is normal; a lot of it makes a company fragile.

Steadiness

How much yearly sales growth swings (standard deviation, up to 10 years)

10.2% · peer median 9.2%

#5 of 5 in the peer group

AMZN · GOOGL · DIS · CMCSANFLX

A ≤ 5.0%B ≤ 8.0%C ≤ 12.0%D ≤ 18.0%F above 18.0%

Netflix's yearly growth swings a fair amount, with a swing score (standard deviation) of 10.2% ^✓, which earns a C ^✓. Growth was 6.7% ^✓ in FY2023 but 15.6% ^✓ in FY2024. Comcast's growth swings less, at 6.4% ^✓.

Why this measure? (lower is better)

Steady growers are easier to plan around. Big swings mean sales depend on product cycles, the economy or one-off events.

🧑‍🏫 How the grades work

Same scale for everyone. Each measure has fixed cut-offs (shown under each strip). Clear the A line and you get an A, whatever your peers do.
Three years together. Profitability and cash generation add up the last three fiscal years before dividing, so one unusual year counts for less than it would on its own (a year much bigger than the others still weighs most).
Peers for context. The rank shows how Netflix compares with the group. Companies within 0.1 percentage point share a rank.
Same source. Every company's figures come from its own latest annual report (10-K), so fiscal years end in different months.
Judgement, openly stated. The cut-offs are QuantVantage.ai's view of what good looks like for a large, established company. They are not a forecast or a recommendation.

11 years at a glance

Revenue

$45.2bn

FY2025

Operating margin

29.5%

FY2025

Free cash flow

$9.5bn

FY2025

Net cash

-$5.4bn

end of FY2025

Where the cash goes

Since FY2015, Netflix has spent more on buying back its shares than it made in free cash flow. From FY2015 to FY2025 it made $16.3bn ^✓ of free cash flow and spent $22.0bn ^✓ buying back its own shares. Free cash flow was negative in the early years, at -$0.8bn ^✓ in FY2015. In FY2025, buybacks took 96% ^✓ of free cash flow.

■ Free cash flow ■ Buybacks + dividends. Source: NETFLIX INC 10-K filings.

🧮Ratios 101: what are Netflix's key financial ratios?

Ratios turn Netflix's big numbers into easy comparisons, and most show a company far more profitable than ten years ago. A ratio divides one number by another so companies of any size can be compared. Each card shows the formula with Netflix's real FY2025 numbers, the peer median and the trend.

💰 Profitability: how much of each sale is kept?

Higher is better

Gross margin

48.5%

Gross profit$21.9bn$45.2bnSales=48.5%

What is left from each sale after paying to make the product or deliver the service.

👉 At 48.5% ^✓, up from 32.3% ^✓ in FY2015, Netflix trails the 55.0% ^✓ median of the two peers that report it.

📏 Rule of thumb: Above 40% usually signals pricing power or a big software or services mix.

Peer median 55.0% (2 peers)FY2015 32.3%

Higher is better

Operating margin

29.5%

Operating profit$13.3bn$45.2bnSales=29.5%

What is left after also paying for research, marketing and running the company.

👉 Netflix's 29.5% ^✓ is far above the 17.6% ^✓ peer median and its own 4.5% ^✓ in FY2015.

📏 Rule of thumb: Above 20% is strong for a large company.

Peer median 17.6% (4 peers)FY2015 4.5%

Higher is better

Net margin

24.3%

Net income$11.0bn$45.2bnSales=24.3%

The bottom line: profit after interest and taxes, per dollar of sales.

👉 Netflix keeps 24.3% ^✓ of revenue as final profit, up from 1.8% ^✓ in FY2015 and above the 14.7% ^✓ peer median.

📏 Rule of thumb: Above 15% is strong; one-off tax items can move it in a single year.

Peer median 14.7% (4 peers)FY2015 1.8%

It depends

Return on equity (ROE)

41.3%

Net income$11.0bn$26.6bnShareholders' equity=41.3%

Profit earned for each dollar that shareholders have left in the company.

👉 ROE of 41.3% ^✓ is about double the 19.8% ^✓ peer median, and far above 5.5% ^✓ in FY2015.

📏 Rule of thumb: Around 15% or more is good, but buybacks shrink equity and can make ROE look huge.

Peer median 19.8% (4 peers)FY2015 5.5%

⚙️ Efficiency: how hard do the assets work?

Higher is better

Return on assets (ROA)

19.8%

Net income$11.0bn$55.6bnTotal assets=19.8%

Profit earned from everything the company owns, however it was paid for.

👉 ROA of 19.8% ^✓ is more than twice the 8.4% ^✓ peer median, up from 1.2% ^✓ in FY2015.

📏 Rule of thumb: Above 10% is strong; banks and factories usually earn less.

Peer median 8.4% (4 peers)FY2015 1.2%

Higher is better

Asset turnover

0.8x

Sales$45.2bn$55.6bnTotal assets=0.8x

Dollars of sales squeezed out of each dollar of assets.

👉 Netflix's revenue is 0.8x ^✓ what it owns, up from 0.7x ^✓ in FY2015 and above the 0.6x ^✓ peer median.

📏 Rule of thumb: Retailers often top 2x; asset-heavy businesses can sit below 0.5x.

Peer median 0.6x (4 peers)FY2015 0.7x

🛟 Safety: could it survive a bad year?

It depends

Current ratio

1.2x

Current assets$13.0bn$11.0bnCurrent liabilities=1.2x

Can short-term assets (cash, money owed by customers, stock) pay the bills due within a year?

👉 At 1.2x ^✓, Netflix's short-term assets cover its bills due within a year, a bit above the 1.0x ^✓ peer median.

📏 Rule of thumb: Above 1.0x is the classic comfort line, but cash-rich giants can run below it on purpose.

Peer median 1.0x (4 peers)FY2015 1.5x

Lower is better

Debt to equity

0.5x

Total debt$14.5bn$26.6bnShareholders' equity=0.5x

How much the company has borrowed for each dollar shareholders have in it.

👉 Netflix's 0.5x ^✓ is down from 1.1x ^✓ in FY2015, but above the 0.3x ^✓ peer median.

📏 Rule of thumb: Below 1.0x is conservative. Like ROE, it can rise when buybacks shrink equity, even if debt has not changed.

Peer median 0.3x (4 peers)FY2015 1.1x

Higher is better

Interest cover

17.2x

Operating profit$13.3bn$0.8bnInterest expense=17.2x

How many times over operating profit could pay the year's interest bill.

👉 Operating profit covers interest 17.2x ^✓, up from 2.3x ^✓ in FY2015 but below the 35.2x ^✓ peer median.

📏 Rule of thumb: Above 5x is comfortable; below 2x is a warning sign.

Peer median 35.2x (3 peers)FY2015 2.3x

💵 Cash and owners: where does the money end up?

Higher is better

Cash conversion

0.9x

Free cash flow$9.5bn$11.0bnNet income=0.9x

Does reported profit turn into real cash? Free cash flow is operating cash minus capital spending.

👉 Netflix turns profit into cash at 0.9x ^✓, above the 0.7x ^✓ peer median and far better than -6.9x ^✓ in FY2015.

📏 Rule of thumb: Near or above 1.0x means profits are backed by cash.

Peer median 0.7x (4 peers)FY2015 -6.9x

It depends

R&D intensity

7.5%

R&D$3.4bn$45.2bnSales=7.5%

How much of each sales dollar goes into inventing future products.

👉 Netflix spends 7.5% ^✓ of revenue on R&D, a little less than 8.4% ^✓ in FY2015. Of its peers here, only Alphabet has an R&D figure, at 15.2% ^✓.

📏 Rule of thumb: Tech companies often spend 10% to 20%; more is not always better if it does not pay off.

Peer median 15.2% (1 peer)FY2015 8.4%

Lower is better

Stock pay

0.8%

Share-based pay$0.4bn$45.2bnSales=0.8%

Pay given to staff in shares instead of cash. It is a real cost to owners because it adds shares.

👉 Stock pay is just 0.8% ^✓ of revenue, below the 2.1% ^✓ peer median and down from 1.8% ^✓ in FY2015.

📏 Rule of thumb: Under 5% of sales is modest for a tech company.

Peer median 2.1% (4 peers)FY2015 1.8%

It depends

Shareholder payout

83.1%

Dividends + buybacks$9.1bn$11.0bnNet income=83.1%

How much of the year's profit was handed back to owners.

👉 Netflix returned 83.1% ^✓ of FY2025 profit to shareholders, about double the 42.5% ^✓ peer median. In FY2015 it returned 0.0% ^✓.

📏 Rule of thumb: Above 100% means it returned more than it earned, using cash savings or debt.

Peer median 42.5% (4 peers)FY2015 0.0%

Ratios use fiscal-year-end balance sheet values. Inputs are shown rounded, so dividing them can differ from the result in the last digit. A peer median leaves out peers that do not report the inputs, or where the ratio means nothing (for example, negative shareholders' equity). Rules of thumb are general guides from QuantVantage.ai, not hard limits. No share-price ratios (like price-to-earnings) are shown on this page.

🥊Who are Netflix's competitors?

Netflix competes with both big tech firms and media companies. It names Alphabet, Amazon, Apple, Comcast, Disney, Meta, Roblox, TikTok and local media firms among its rivals ⁴.

Peer map from each company's latest 10-K. Bubble size = revenue. Source: SEC filings [7] [8] [9] [10] [11].

Company	Where they compete	Revenue	Growth/yr (3y)	Op. margin	FCF margin
Netflix (NFLX, FY2025)	Paid streaming, with an ad-supported plan ² ⁴	$45.2bn	12.6%	29.5%	20.9%
Alphabet (GOOGL, FY2025)	YouTube competes for TV viewing time and ad budgets ¹²⁵	$402.8bn	12.5%	32.0%	18.2%
Amazon (AMZN, FY2025)	Streams series, films and live sports, with video included in its Prime membership ¹³⁵	$716.9bn	11.7%	11.2%	1.1%
Disney (DIS, FY2025)	Disney+ and Hulu are paid streaming services with ad plans; Disney also licenses titles to Netflix ¹⁴⁵¹⁵	$94.4bn	4.5%	18.6%	10.7%
Comcast (CMCSA, FY2025)	Peacock is a paid streaming rival, but Comcast is also a partner whose video packages can include Netflix ¹⁶⁴	$123.7bn	0.6%	16.7%	17.7%

Netflix says piracy is hard to compete against because almost all content is free there ¹⁷. Linear TV still made up over 40% of US TV screen time in December 2025 ⁴⁵.

🧭Netflix SWOT: strengths, weaknesses, opportunities and threats

💪 Strengths

Netflix crossed 325 million paid memberships in the fourth quarter of 2025 ⁵.
Operating margin was 29.5% ^✓ in FY2025, far above the 17.6% ^✓ peer median.
Non-English titles grew from under 10% of viewing a decade ago to more than a third in 2026 ¹⁵.
Netflix says member response to its 2026 price rises matched its expectations ¹⁵.

🩹 Weaknesses

Most content payments are fixed and do not depend on member numbers, so they are hard to cut if growth slows ¹⁷.
Netflix had $24.0 billion of content obligations at 31 December 2025 ¹⁹.
Viewing grew 1.5% in 2025 and 2% in the first half of 2026 ²⁰.
Members can change their plans at any time ². Netflix says they cancel for many reasons, such as cost or content ¹⁷.

🚀 Opportunities

At the end of 2025, Netflix had signed up less than 45% of the broadband households it counts as its market ⁴.
Ad revenue grew more than 2.5 times in 2025, to over $1.5 billion ⁵.
Netflix plans to bring its ad plan to 15 more countries in 2027 ¹⁵.
Live events made six of its top 10 days for new sign-ups in the five years to mid-2026 ²⁰.

⚠️ Threats

Netflix names rivals including Alphabet, Amazon, Apple, Disney, Meta and TikTok ⁴.
In October 2026 Netflix cut its 2026 ad revenue forecast to about $2.7 billion, from about $3 billion ¹⁵.
Some countries require streamers to invest locally, pay levies or meet catalog quotas ¹⁸.
Netflix booked a loss of about $619 million in the third quarter of 2025 on a Brazilian non-income tax dispute ¹⁹.
Netflix says rivals could gain an edge by using generative AI better ¹⁷.

🏰Does Netflix have a moat?

Narrow moatNetflix spreads mostly fixed content costs over a large member base, but members can leave at any time and rivals have deep libraries.

Brand 4/5

12345 AMZN·CMCSAGOOGLDISNFLX

Why 4?

Netflix says a strong global brand is one of its advantages, along with a wide range of programming ⁴. It says member response to its 2026 price rises matched its expectations ¹⁵. Churn also improved year over year in the third quarter of 2026 ¹⁵.

Switching costs 2/5

12345 DISCMCSA·GOOGLAMZNNFLX

Why 2?

Leaving is easy, as members can change their plans at any time ². Netflix says members cancel for many reasons, such as cost, content or a rival service, though many later rejoin ¹⁷.

Network effects 2/5

12345 CMCSA·DISAMZN·GOOGLNFLX

Why 2?

Netflix says its global reach and deep engagement make it a more attractive partner for creators and licensors, because it can earn more from their content ⁴. It crossed 325 million paid memberships in the fourth quarter of 2025 ⁵.

Cost advantages and scale 4/5

12345 AMZN·CMCSA·DIS·GOOGLNFLX

Why 4?

Most content payments are fixed and do not depend on member numbers ¹⁷. Netflix crossed 325 million paid memberships in the fourth quarter of 2025 ⁵. It also built its own delivery network, Open Connect, to stream video efficiently ⁶.

Intangibles (patents, licences, regulation) 3/5

12345 AMZNCMCSA·GOOGLDISNFLX

Why 3?

Netflix protects its technology, brands and shows with patents, trademarks and copyrights ¹⁸. But much of its catalog depends on licences from studios ¹⁸. Some countries also require local investment, levies or catalog quotas ¹⁸.

A moat is what keeps rivals from taking a company's customers and profits. Scores are QuantVantage.ai's judgement (5 = strongest), set with the same rubric on every explainer (orange is Netflix; grey dots are peers).

🔭What should you watch next?

After 2026 ends

Full-year 2026 results

Netflix forecast 2026 revenue of $51.1 billion, up 13%, with a 31.5% operating margin ¹⁵. It expects about $12.0 billion of free cash flow in 2026 ¹⁵. Figures on this page run to FY2025 and the four quarters to 30 September 2026.

Fourth quarter of 2026

Headcount cuts

Netflix announced job cuts that it expects to lower that quarter's operating margin by about 1.2 percentage points ¹⁵.

Fourth quarter of 2026 and first quarter of 2027

Big live events

The fourth-quarter 2026 live slate includes a Christmas Day NFL doubleheader and a Fury vs. Joshua boxing match ¹⁵. Netflix will also stream a final-week NFL regular-season game in the first quarter of 2027 ²⁰.

From March 2027

Ad plan in more countries

Netflix plans to bring its ad-supported plan to 15 more countries in 2027 ¹⁵. In October 2026 it cut its 2026 ad revenue forecast to about $2.7 billion ¹⁵.

First quarter of 2027

Viewing report changes

Netflix will publish its What We Watched viewing report once a year, starting in 2027 ²⁰.

Early 2029

Sony film deal goes global

The Sony Pictures first-window film deal is widening from the US to the whole world, with full global availability in early 2029 ⁵.

📚Learn the words

Revenue (sales)All the money a company takes in from customers before paying any costs.

StreamingWatching video over the internet as it plays, instead of downloading it or using a disc.

Membership feeThe amount a member pays each month to use a service such as Netflix.

ChurnThe share of members who cancel in a given time. Lower churn means members stay longer.

Ad-supported planA cheaper plan where viewers see adverts, and the company also earns money from advertisers.

LicensingPaying the owner of a film or show for the right to stream it for a set time.

Gross marginThe share of each revenue dollar left after paying for what was sold.

Operating profitProfit from the main business after paying for content, research, marketing and admin, but before interest and tax.

Free cash flowThe cash a business has left after running itself and buying equipment. It can be used for buybacks, deals or saving.

Fiscal yearA company's own 12-month accounting year. Netflix's matches the calendar year, so FY2025 ended on 31 December 2025.

Economic moatA lasting advantage, like a strong brand or high switching costs, that keeps rivals from taking a company's customers.

❓Frequently asked questions about Netflix

How does Netflix make money?

Netflix makes most of its money from monthly membership fees ². In FY2025 that streaming business brought in $45.2bn ^✓. It also earns money from ads, which topped $1.5 billion in 2025 ⁵.

How many members does Netflix have?

Netflix crossed 325 million paid memberships in the fourth quarter of 2025 ⁵. During 2025 it stopped reporting member numbers ⁶.

How much does Netflix cost?

It depends on the country and the plan. At 30 September 2026, plans cost the equivalent of US$1 to US$37 a month ³. In the US, the plan with ads cost $8.99 a month in April 2026 ⁴.

Who runs Netflix?

Netflix has two co-CEOs, Ted Sarandos and Greg Peters ²¹. Co-founder Reed Hastings ²¹ did not stand for re-election at the June 2026 annual meeting, and Jay Hoag became chairman ²²²³.

Is Netflix still growing?

Yes, Netflix is still growing. Revenue rose 15.9% ^✓ in FY2025 and 14.7% ^✓ in the four quarters to September 2026. Over ten years, growth averaged 20.9% ^✓ a year.

What happened with Warner Bros. Discovery?

Netflix agreed in December 2025 to buy the studios and streaming businesses of Warner Bros. Discovery, including HBO Max ¹⁹³. In February 2026 Warner Bros. Discovery ended the deal to sign with Paramount Skydance, which paid Netflix a $2.8 billion termination fee ¹⁹³.

Does Netflix buy back its own shares?

Yes, Netflix buys back its own shares. In FY2025 it spent $9.1bn ^✓ on buybacks. In April 2026 its board approved another $25 billion of buybacks ²⁵. In the third quarter of 2026 it spent $4.8 billion, its largest quarter of buybacks ever ¹⁵.

Did Netflix split its stock?

Yes, Netflix split its stock ten-for-one after trading closed on November 14, 2025 ²⁶. Holders got nine extra shares for each share they owned ²⁶.

🎮Play: higher or lower, then test yourself

Higher or lower · round 1 of 6

Figures come from each company's latest annual report (10-K); fiscal years end in different months. Sources: [7] [8] [9] [10] [11].

Score: 0

🧠 Test yourself

5 quick questions. Score: 0 / 5

1. Where does most of Netflix's money come from?

Netflix's revenue comes mainly from monthly membership fees for its streaming service ².

2. Which region brought Netflix the most streaming revenue in 2025?

The US and Canada brought in $19.96 billion of streaming revenue in 2025, the most of any region ⁶.

3. How many people watched the 2026 World Baseball Classic on Netflix in Japan?

The event drew 31.4 million viewers and became Netflix's most-watched program ever in Japan ⁴⁵.

4. What share of Netflix viewing was non-English titles in 2026?

Non-English titles grew from under 10% of viewing a decade ago to more than a third in 2026 ¹⁵.

5. How many views did the final season of Stranger Things have by 18 January 2026?

The final season had 120 million views on Netflix by January 18, 2026 ⁵.

🔎Sources and method

Every figure comes from a source listed here or is calculated from those sources (marked ^✓). Company financials are taken from SEC filings (10-K and 10-Q) as tagged in XBRL. Peer grades rank the same measures across the company and its peers. This page contains no share-price data and no valuation.

Netflix (NFLX) Form 10-K for fiscal year 2025, filed 2026-01-23 — revenue by product, segment and geography (accessed 2026-10-28)
Netflix Form 10-K for fiscal year 2025 — Cover, Item 1 and Item 2: incorporation, headquarters, fiscal year, operating segment, plans, employees (accessed 2026-10-29)
Netflix Form 10-Q for the quarter ended September 30, 2026 — Revenue drivers, plan pricing and revenue by region for Q3 2026; Warner Bros. Discovery termination fee (accessed 2026-10-29)
Netflix shareholder letter, April 16, 2026 (Form 8-K exhibit 99.1) — Q1 2026: competitive set, ads plan, games, World Baseball Classic, InterPositive, history (accessed 2026-10-29)
Netflix shareholder letter, January 20, 2026 (Form 8-K exhibit 99.1) — Q4 2025 and full year 2025: paid memberships, ad revenue, games, live, licensing, competition (accessed 2026-10-29)
Netflix Form 10-K for fiscal year 2025 — Item 7 results: revenue sources, plan pricing, streaming revenue by region, Open Connect, membership reporting, DVD service (accessed 2026-10-29)
SEC EDGAR companyfacts: Netflix (NFLX) — annual 10-K facts (accessed 2026-10-28)
SEC EDGAR companyfacts: Alphabet Inc. (GOOGL) — annual 10-K facts (accessed 2026-10-28)
SEC EDGAR companyfacts: AMAZON COM INC (AMZN) — annual 10-K facts (accessed 2026-10-28)
SEC EDGAR companyfacts: Walt Disney Co (DIS) — annual 10-K facts (accessed 2026-10-28)
SEC EDGAR companyfacts: COMCAST CORP (CMCSA) — annual 10-K facts (accessed 2026-10-28)
Alphabet Form 10-K for fiscal year 2025 — YouTube ads revenue 2025; YouTube subscription services (accessed 2026-10-29)
Amazon Form 10-K for fiscal year 2025 — Prime membership video benefit; video and music expense 2025 (accessed 2026-10-29)
Walt Disney Co. Form 10-K for fiscal year 2025 — Item 1 Direct-to-Consumer: Disney+ and Hulu services and paid subscribers (accessed 2026-10-29)
Netflix shareholder letter, October 20, 2026 (Form 8-K exhibit 99.1) — Q3 2026 results, 2026 and Q4 forecast, ads, licensing, live slate, buybacks (accessed 2026-10-29)
Comcast Form 10-K for fiscal year 2025 — Peacock paid subscribers; streaming services in Comcast video packages (accessed 2026-10-29)
Netflix Form 10-K for fiscal year 2025 — Item 1A risk factors: cancellations, rejoining members, fixed content costs, piracy, generative AI (accessed 2026-10-29)
Netflix Form 10-K for fiscal year 2025 — Item 1 competition, intellectual property and regulation (accessed 2026-10-29)
Netflix Form 10-K for fiscal year 2025 — Item 7 liquidity and Item 7A: content obligations, Warner Bros. Discovery agreement, Brazil tax matters, currency mix (accessed 2026-10-29)
Netflix shareholder letter, July 16, 2026 (Form 8-K exhibit 99.1) — Q2 2026: engagement, live programming, TF1, games, NFL agreement, trials, reporting changes (accessed 2026-10-29)
Netflix 2026 proxy statement (DEF 14A) — Director and executive biographies: founding, co-CEOs (accessed 2026-10-29)
Netflix Form 8-K, June 5, 2026 — 2026 annual meeting results; new chairman of the board (accessed 2026-10-29)
Netflix Form 8-K, April 16, 2026 — Reed Hastings not standing for re-election as director (accessed 2026-10-29)
SEC EDGAR companyfacts: Netflix (NFLX) — quarterly 10-Q/10-K facts (accessed 2026-10-28)
Netflix Form 8-K, April 23, 2026 — Additional $25 billion share repurchase authorization (accessed 2026-10-29)
Netflix press release on ten-for-one stock split, October 30, 2025 (Form 8-K exhibit 99.1) — Stock split terms and dates (accessed 2026-10-29)
SEC EDGAR companyfacts: Netflix (NFLX) — balance sheet at 2026-09-30 (accessed 2026-10-28)

Netflix (NFLX) explained: how it makes money, how it's doing, what protects it

⚡What does Netflix do, in 30 seconds?

📱What does Netflix sell?

Streaming

Other

How the mix has shifted

💸How does Netflix make money?

Out of every $100 customers paid in FY2025…

⏱️ Netflix by the clock

📈How is Netflix doing?

📝 The report card

Growth

Profitability

Cash generation

Balance sheet

Steadiness

11 years at a glance

Where the cash goes

🧮Ratios 101: what are Netflix's key financial ratios?

💰 Profitability: how much of each sale is kept?

Gross margin

Operating margin

Net margin

Return on equity (ROE)

⚙️ Efficiency: how hard do the assets work?

Return on assets (ROA)

Asset turnover

🛟 Safety: could it survive a bad year?

Current ratio

Debt to equity

Interest cover

💵 Cash and owners: where does the money end up?

Cash conversion

R&D intensity

Stock pay

Shareholder payout

🥊Who are Netflix's competitors?

🧭Netflix SWOT: strengths, weaknesses, opportunities and threats

💪 Strengths

🩹 Weaknesses

🚀 Opportunities

⚠️ Threats

🏰Does Netflix have a moat?

🔭What should you watch next?

Full-year 2026 results

Headcount cuts

Big live events

Ad plan in more countries

Viewing report changes

Sony film deal goes global

📚Learn the words

❓Frequently asked questions about Netflix

🎮Play: higher or lower, then test yourself

🧠 Test yourself

1. Where does most of Netflix's money come from?

2. Which region brought Netflix the most streaming revenue in 2025?

3. How many people watched the 2026 World Baseball Classic on Netflix in Japan?

4. What share of Netflix viewing was non-English titles in 2026?

5. How many views did the final season of Stranger Things have by 18 January 2026?

🔎Sources and method