Netflix (NFLX) Financials

Los Gatos, CA · Founded 1997 · 16,000 employees

Last Updated: 2025-12-05

Netflix generated $45.2B in revenue for fiscal year 2025, a +15.9% year-over-year change. Gross margin was 48.5%. Net income reached $11.0B.

Netflix is doubling down on a high-stakes pivot, using massive new debt to fund the Warner Bros. Discovery acquisition while simultaneously reducing transparency by hiding subscriber counts. While revenue is growing, a $20B+ content bill and surprise tax hits in Brazil are tightening the belt on a cash pile that is already being depleted by aggressive stock buybacks. Netflix delivered a strong 2025 operational and cash performance — $45.2B revenue (+16% Y/Y), a 29.5% operating margin and roughly $9.5B of free cash flow — while crossing ~325M paid memberships and scaling ad revenue to >$1.5B. Management now emphasizes revenue and operating margin rather than membership counts, and issued full-year 2026 guidance of $50.7B–$51.7B revenue and a 31.5% operating margin (which includes ~$275M of acquisition-related expenses and ~10% content amortization growth).

Revenue Trend
$29.7BFY21$31.6BFY22$33.7BFY23$39.0BFY24$45.2BFY25

Netflix Key Financial Metrics

Revenue
$45.2B
+15.9% YoY
Net Income
$11.0B
24.3% margin
Gross Margin
48.5%
EPS (Diluted)
$2.53
Total Assets
$55.6B
Total Equity
$26.6B
Cash & Equivalents
$9.0B
Total Debt
$14.5B

Netflix Income Statement & Revenue History

Fiscal YearRevenueYoY GrowthGross MarginOp. MarginNet IncomeEPS
FY2025$45.2B+15.9%48.5%29.5%$11.0B$2.53
FY2024$39.0B+15.6%46.1%26.7%$8.7B$19.83
FY2023$33.7B+6.7%41.5%20.6%$5.4B$12.03
FY2022$31.6B+6.5%39.4%17.8%$4.5B$9.95
FY2021$29.7B+18.8%41.6%20.9%$5.1B$11.24
FY2020$25.0B+24.0%38.9%18.3%$2.8B$6.08
FY2019$20.2B+27.6%38.3%12.9%$1.9B$4.13
FY2018$15.8B36.9%10.2%$1.2B$2.68

Netflix Cash Flow Statement

Fiscal YearOperating Cash FlowCapital ExpendituresFree Cash FlowInvestingFinancing
FY2025$10.1B$-688.2M$9.5B$1.0B$-10.3B
FY2024$7.4B$-439.5M$6.9B$-2.2B$-4.1B
FY2023$7.3B$-348.6M$6.9B$541.8M$-6.0B
FY2022$2.0B$-407.7M$1.6B$-2.1B$-664.3M
FY2021$392.6M$-524.6M$-158.9M$-1.3B$-1.1B
FY2020$2.4B$-497.9M$1.9B$-505.4M$1.2B
FY2019$-2.9B$-253.0M$-3.3B$-387.1M$4.5B
FY2018$-2.7B$-173.9M$-3.0B$-339.1M$4.0B

Netflix Balance Sheet Summary

Fiscal YearTotal AssetsTotal LiabilitiesTotal EquityCashTotal Debt
FY2025$55.6B$29.0B$26.6B$9.0B$14.5B
FY2024$53.6B$28.9B$24.7B$7.8B$15.6B
FY2023$48.7B$28.1B$20.6B$7.1B$14.5B
FY2022$48.6B$27.8B$20.8B$5.1B$14.4B
FY2021$44.6B$28.7B$15.8B$6.0B$15.4B
FY2020$39.3B$28.2B$11.1B$8.2B$16.3B
FY2019$34.0B$26.4B$7.6B$5.0B$14.8B
FY2018$26.0B$20.7B$5.2B$3.8B$0

Netflix Strategic Analysis

Top Strengths

  • Exceptional free cash flow generation and margin expansion (2025 FCF ~ $9.5B; operating margin 29.5%).
  • Global scale and deep original library (325M paid memberships, worldwide footprint) — now potentially augmented by HBO/Warner Bros. IP.
  • Rapidly scaling ad business (>$1.5B in 2025, management expects ~2x growth in 2026) and diversified monetization paths (ads, games, live, consumer products).

Top Concerns

  • Financing and execution risk of the all‑cash Warner Bros. purchase (very large bridge commitments and repayment/refinancing risk).
  • Large off‑balance-sheet streaming content obligations ($24.0B total, ~$18.4B not yet on the balance sheet) and rising content amortization compressing margins.
  • Regulatory and tax exposures: multijurisdictional merger review (antitrust/conditions) and a material Brazil non‑income tax dispute (~$700M deposit / ~$619M recognized expense).

Netflix Key Corporate Events

Jan 2026
Netflix to Buy Warner Bros. Discovery for $27.75 Cash
Dec 2025
Netflix Secures $25B Credit to Fund Warner Bros. Discovery Buyout
Dec 2025
Netflix offers $23.25 cash plus shares for Warner Bros. Discovery
Jun 2021
Netflix Extends Revolving Credit, Increases Commitment to $1B
Apr 2020
Netflix Prices $500M and €470M Notes Due 2025

Frequently Asked Questions About Netflix Financials

How much revenue does Netflix make?

Netflix generated $45.2B in revenue for fiscal year 2025. That represents a +15.9% change from $39.0B in fiscal year 2024.

Is Netflix profitable?

Yes, Netflix is profitable. The company reported net income of $11.0B in fiscal year 2025, representing a net profit margin of 24.3%. In the prior fiscal year 2024, net income was $8.7B.

What is Netflix's gross margin?

Netflix's gross margin for fiscal year 2025 was 48.5%, calculated from gross profit of $21.9B on revenue of $45.2B. Over the past 5 years, gross margins have ranged between 39% and 48%.

How many employees does Netflix have?

Netflix employs approximately 16,000 people worldwide. The company is headquartered in Los Gatos, CA and was founded in 1997.

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