# NETFLIX INC (NFLX)

Informational only - not investment advice.

CIK: 0001065280
SIC: 7841 Services-Video Tape Rental
SIC breadcrumb: [Services](/division/I/) > [Motion Pictures](/major-group/78/) > [SIC 7841 Services-Video Tape Rental](/industry/7841/)
Latest 10-K filed: 2026-01-23
SEC page: https://www.sec.gov/edgar/browse/?CIK=1065280
Filing source: https://www.sec.gov/Archives/edgar/data/1065280/000106528026000034/nflx-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-01-23 · accession 0001065280-26-000034 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001065280.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 45,183,036,000 USD | 2025 | verified |
| Net income | 10,981,201,000 USD | 2025 | verified |
| Assets | 55,596,993,000 USD | 2025 | verified |
| Free cash flow | 9,461,053,000 USD | 2025 | computed |
| Net margin | 24.30% | 2025 | computed |
| Operating margin | 29.49% | 2025 | computed |
| Revenue YoY | +15.85% | 2025 | computed |
| ROE | 41.26% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | NFLX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 24.3% | -9.0% | 100 | 9 |
| Operating margin | 29.5% | -5.3% | 100 | 8 |
| Revenue growth | 15.9% | 4.6% | 62 | 9 |
| FCF margin | 20.9% | -2.3% | 100 | 8 |
| ROA | 19.8% | -5.8% | 100 | 8 |
| Current ratio | 1.19 | 0.51 | 86 | 8 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 78 Motion Pictures, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 45183036000 | USD | 2025 | 2026-01-23 |
| Net income | 10981201000 | USD | 2025 | 2026-01-23 |
| Assets | 55596993000 | USD | 2025 | 2026-01-23 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-01-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001065280.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 8,830,669,000 | 11,692,713,000 | 15,794,341,000 | 20,156,447,000 | 24,996,056,000 | 29,697,844,000 | 31,615,550,000 | 33,723,297,000 | 39,000,966,000 | 45,183,036,000 |
| Net income |  |  |  | 186,678,000 | 558,929,000 | 1,211,242,000 | 1,866,916,000 | 2,761,395,000 | 5,116,228,000 | 4,491,924,000 | 5,407,990,000 | 8,711,631,000 | 10,981,201,000 |
| Operating income |  |  |  | 379,793,000 | 838,679,000 | 1,605,226,000 | 2,604,254,000 | 4,585,289,000 | 6,194,509,000 | 5,632,831,000 | 6,954,003,000 | 10,417,614,000 | 13,326,603,000 |
| Diluted EPS |  |  |  | 0.43 | 1.25 | 2.68 | 4.13 | 6.08 | 11.24 | 9.95 | 1.20 | 1.98 | 2.53 |
| Operating cash flow |  |  |  | -1,473,984,000 | -1,785,948,000 | -2,680,479,000 | -2,887,322,000 | 2,427,077,000 | 392,610,000 | 2,026,257,000 | 7,274,301,000 | 7,361,364,000 | 10,149,273,000 |
| Capital expenditures |  |  |  | 107,653,000 | 173,302,000 | 173,946,000 | 253,035,000 | 497,923,000 | 524,585,000 | 407,729,000 | 348,552,000 | 439,538,000 | 688,220,000 |
| Share buybacks | 199,666,000 | 0.00 | 0.00 |  |  |  | 0.00 | 0.00 | 600,022,000 | 0.00 | 6,045,347,000 | 6,263,746,000 | 9,127,167,000 |
| Assets |  |  |  | 13,586,610,000 | 19,012,742,000 | 25,974,400,000 | 33,975,712,000 | 39,280,359,000 | 44,584,663,000 | 48,594,768,000 | 48,731,992,000 | 53,630,374,000 | 55,596,993,000 |
| Liabilities |  |  |  | 10,906,810,000 | 15,430,786,000 | 20,735,635,000 | 26,393,555,000 | 28,215,119,000 | 28,735,415,000 | 27,817,367,000 | 28,143,679,000 | 28,886,807,000 | 28,981,505,000 |
| Stockholders' equity |  |  |  | 2,679,800,000 | 3,581,956,000 | 5,238,765,000 | 7,582,157,000 | 11,065,240,000 | 15,849,248,000 | 20,777,401,000 | 20,588,313,000 | 24,743,567,000 | 26,615,488,000 |
| Cash and cash equivalents |  |  |  | 1,467,576,000 | 2,822,795,000 | 3,794,483,000 | 5,018,437,000 | 8,205,550,000 | 6,027,804,000 | 5,147,176,000 | 7,116,913,000 | 7,804,733,000 | 9,033,681,000 |
| Free cash flow |  |  |  | -1,581,637,000 | -1,959,250,000 | -2,854,425,000 | -3,140,357,000 | 1,929,154,000 | -131,975,000 | 1,618,528,000 | 6,925,749,000 | 6,921,826,000 | 9,461,053,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 2.11% | 4.78% | 7.67% | 9.26% | 11.05% | 17.23% | 14.21% | 16.04% | 22.34% | 24.30% |
| Operating margin |  |  |  | 4.30% | 7.17% | 10.16% | 12.92% | 18.34% | 20.86% | 17.82% | 20.62% | 26.71% | 29.49% |
| Return on equity |  |  |  | 6.97% | 15.60% | 23.12% | 24.62% | 24.96% | 32.28% | 21.62% | 26.27% | 35.21% | 41.26% |
| Return on assets |  |  |  | 1.37% | 2.94% | 4.66% | 5.49% | 7.03% | 11.48% | 9.24% | 11.10% | 16.24% | 19.75% |
| Liabilities / equity |  |  |  | 4.07 | 4.31 | 3.96 | 3.48 | 2.55 | 1.81 | 1.34 | 1.37 | 1.17 | 1.09 |
| Current ratio |  |  |  | 1.25 | 1.40 | 1.49 | 0.90 | 1.25 | 0.95 | 1.17 | 1.12 | 1.22 | 1.19 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001065280.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 3.10 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 2.88 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 3.29 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 8,541,668,000 | 1,677,422,000 | 3.73 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 8,832,825,000 | 937,838,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 9,370,440,000 | 2,332,209,000 | 5.28 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 9,559,310,000 | 2,147,306,000 | 4.88 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 9,824,703,000 | 2,363,509,000 | 5.40 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 10,246,513,000 | 1,868,607,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 10,542,801,000 | 2,890,351,000 | 6.61 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 11,079,166,000 | 3,125,413,000 | 7.19 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 11,510,307,000 | 2,546,916,000 | 5.87 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 12,050,762,000 | 2,418,521,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 12,249,757,000 | 5,282,791,000 | 1.23 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 12,559,938,000 | 3,401,414,000 | 0.80 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from NFLX's latest 10-K: [/company/NFLX/business/](/company/NFLX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from NFLX's latest 10-K: [/company/NFLX/risk-factors/](/company/NFLX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1065280/000106528026000212/nflx-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-17
Report date: 2026-06-30

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding: our core strategy; our ability to improve our content offerings and service; our future financial performance, including expectations regarding revenues, deferred revenue, operating income and margin, net income, expenses, and profitability; liquidity, including the sufficiency of our capital resources, net cash provided by (used in) operating activities, access to financing sources and free cash flows; capital allocation strategies, including any stock repurchases or repurchase programs; stock price volatility; impact of foreign exchange rate fluctuations, including on net income and revenues; expectations regarding hedging activity; impact of interest rate fluctuations; adequacy of existing facilities; future regulatory changes and their impact on our business; intellectual property; cybersecurity; price changes and testing; accounting treatment for changes related to content assets; acquisitions; actions by competitors; partnerships; advertising; multi-household usage; member viewing patterns; dividends; future contractual obligations, including unknown content obligations and timing of payments; our global content and marketing investments, including investments in original programming, consumer products and experiences; impact of work stoppages; content amortization; resolution of tax examinations; tax

26

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expense; unrecognized tax benefits; deferred tax assets; resolution of disputes and other proceedings; our ability to effectively manage change and growth; our company culture; and our ability to attract and retain qualified employees and key personnel. These forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those included in forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on January 23, 2026, in particular the risk factors discussed under the heading “Risk Factors” in Part I, Item 1A.

We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this Quarterly Report on Form 10-Q, unless required by law.

Investors and others should note that we announce material financial and other information to our investors using our investor relations website (ir.netflix.net), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs to communicate with our members and the public about our company, our services and other issues. It is possible that the information we post on social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels and blogs listed on our investor relations website.

Overview

We are one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.

Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members’ experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable.

Results of Operations

The following represents our consolidated performance highlights:

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Change"],["","June 30, 2026","","June 30, 2025","","Q2\u201926 vs. Q2\u201925"],["","(in thousands, except percentages)"],["Financial Results:"],["Revenues","$","12,559,938","","","$","11,079,166","","","$","1,480,772","","","13","%"],["Constant currency change in revenues(1)","","","","","","","12","%"],["Operating income","$","4,192,610","","","$","3,774,694","","","$","417,916","","","11","%"],["Operating margin","33.4","%","","34.1","%","","(0.7)","%"],["Net income","$","3,401,414","","","$","3,125,413","","","$","276,001","","","9","%"]]
[[/GREPCENT_TABLE]]

(1) See the “Non-GAAP Constant Currency Information” section below for additional details on our use of constant currency revenue.

Operating margin for the three months ended June 30, 2026 decreased by approximately one percentage point as compared to the prior comparative period. The decrease in operating margin was primarily driven by technology and development expenses and sales and marketing expenses growing at a faster rate than revenue.

Net income for the three months ended June 30, 2026 increased $276 million as compared to the prior comparative period, primarily due to a $418 million increase in operating income, driven by a $1,481 million increase in revenues and partially offset by a $712 million increase in cost of revenues primarily due to an increase in content amortization. The impact of higher operating income was partially offset by a $161 million increase in the provision for income taxes.

27

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Revenues

We primarily derive revenues from monthly membership fees for services related to streaming content to our members. We offer a variety of streaming membership plans, the price of which varies by country and the features of the plan. As of June 30, 2026, pricing on our plans ranged from the U.S. dollar equivalent of $1 to $38 per month, and pricing on our extra member sub accounts ranged from the U.S. dollar equivalent of $2 to $10 per month. We expect that from time to time the prices of our membership plans in each country may change and we may test other plan and price variations.

We also earn revenues from advertisements presented on our streaming service, consumer products and experiences, and various other sources. Revenues earned from sources other than monthly membership fees were not a material component of revenues for the three and six months ended June 30, 2026 and June 30, 2025.

Three months ended June 30, 2026 as compared to the three months ended June 30, 2025

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Change"],["","","June 30, 2026","","June 30, 2025","","Q2\u201926 vs. Q2\u201925"],["","","(in thousands, except percentages)"],["Revenues","","$","12,559,938","","","$","11,079,166","","","$","1,480,772","","","13","%"]]
[[/GREPCENT_TABLE]]

Six months ended June 30, 2026 as compared to the six months ended June 30, 2025

[[GREPCENT_TABLE]]
[["","","Six Months Ended","","Change"],["","","June 30, 2026","","June 30, 2025","","YTD\u201926 vs. YTD\u201925"],["","","(in thousands, except percentages)"],["Revenues","","$","24,809,695","","","$","21,621,967","","","$","3,187,728","","","15","%"]]
[[/GREPCENT_TABLE]]

Revenues for the three and six months ended June 30, 2026 increased 13% and 15% as compared to the three and six months ended June 30, 2025, respectively, primarily due to the growth in memberships, price increases, and increased advertising revenue. Additionally, revenues for the three and six months ended June 30, 2026 as compared to the same periods in 2025, were impacted by favorable changes in foreign exchange rates, net of hedging.

The following tables summarize revenues by region for the three and six months ended June 30, 2026 and 2025. Total revenues are inclusive of hedging gains (losses) of $(48) million and $(180) million for the three and six months ended June 30, 2026, respectively, and $(37) million and $127 million for the three and six months ended June 30, 2025, respectively. See Note 8 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the Company’s derivative and non-derivative financial instruments.

Three months ended June 30, 2026 as compared to the three months ended June 30, 2025

[[GREPCENT_TABLE]]
[["","","Three Months Ended","","Change"],["","","June 30, 2026","","June 30, 2025","","Q2\u201926 vs. Q2\u201925"],["","","(in thousands, except percentages)"],["United States and Canada (UCAN)","","$","5,431,667","","","$","4,929,003","","","$","502,664","","","10","%"],["Europe, Middle East, and Africa (EMEA)","","4,033,515","","","3,538,175","","","495,340","","","14","%"],["Latin America (LATAM)","","1,584,290","","","1,306,735","","","277,555","","","21","%"],["Asia-Pacific (APAC)","","1,510,466","","","1,305,253","","","205,213","","","16","%"],["Total Revenues","","$","12,559,938","","","$","11,079,166","","","$","1,480,772","","","13","%"]]
[[/GREPCENT_TABLE]]

28

Table of Contents

Six months ended June 30, 2026 as compared to the six months ended June 30, 2025

[[GREPCENT_TABLE]]
[["","","Six Months Ended","","Change"],["","","June 30, 2026","","June 30, 2025","","YTD\u201926 vs. YTD\u201925"],["","","(in thousands, except percentages)"],["United States and Canada (UCAN)","","$","10,676,965","","","$","9,546,101","","","$","1,130,864","","","12","%"],["Europe, Middle East, and Africa (EMEA)","","8,031,934","","","6,942,851","","","1,089,083","","","16","%"],["Latin America (LATAM)","","3,081,348","","","2,568,669","","","512,679","","","20","%"],["Asia-Pacific (APAC)","","3,019,448","","","2,564,346","","","455,102","","","18","%"],["Total Revenues","","$","24,809,695","","","$","21,621,967","","","$","3,187,728","","","15","%"]]
[[/GREPCENT_TABLE]]

Non-GAAP Constant Currency Information

We believe the non-GAAP financial measure of constant currency revenue is useful in analyzing period-to-period comparisons in revenues absent foreign currency fluctuations. However, this non-GAAP financial measure should be considered in addition to, not as a substitute for, or superior to other financial measures prepared in accordance with GAAP.

In order to exclude the effect of foreign currency rate fluctuations on revenue, we calculate current period revenue assuming foreign exchange rates had remained constant with foreign exchange rates from each of the corresponding months of the prior-year period and exclude the impact of hedging gains or losses realized as revenues. Constant currency percentage change in revenues is calculated as the percentage change between current period constant currency revenue and the prior comparative period revenue. The impact of hedging gains or losses is excluded from both the current and prior periods.

The tables below summarize constant currency revenues by region for the three and six months ended June 30, 2026 and the constant currency percentage change in revenues by region for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025:

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1065280/000106528026000034/nflx-20251231.htm
Complete FY 2025 MD&A: /company/NFLX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-01-23
Report date: 2025-12-31

Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations

This section of this Form 10-K generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2023 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Results of Operations

The following represents our consolidated performance highlights(1):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2023","","2025 vs. 2024"],["","","(in thousands, except percentages)"],["Financial Results:"],["Streaming revenues","","$","45,183,036","","","$","39,000,966","","","$","33,640,458","","","$","6,182,070","","","16","%"],["DVD revenues(2)","","$","\u2014","","","$","\u2014","","","$","82,839","","","$","\u2014","","","\u2014","%"],["Total revenues","","$","45,183,036","","","$","39,000,966","","","$","33,723,297","","","$","6,182,070","","","16","%"],["Constant currency change in revenues(3)","","","","","","","","","","17","%"],["Operating income","","$","13,326,603","","","$","10,417,614","","","$","6,954,003","","","$","2,908,989","","","28","%"],["Operating margin","","29.5","%","","26.7","%","","20.6","%","","2.8","%"],["Net income","","$","10,981,201","","","$","8,711,631","","","$","5,407,990","","","$","2,269,570","","","26","%"]]
[[/GREPCENT_TABLE]]

(1) During the year ended December 31, 2025, we discontinued the reporting of membership numbers, including average paying memberships and average monthly revenue per paying membership, focusing instead on revenue and operating margin as the primary financial metrics that we believe best represent our business performance.

(2) We discontinued our DVD-by-mail service in the year ended December 31, 2023. The discontinuance of our DVD business had an immaterial impact on our operations and financial results.

(3) See the “Non-GAAP Constant Currency Information” section below for additional details on our use of constant currency revenue.

Operating margin for the year ended December 31, 2025 increased by approximately three percentage points as compared to the prior comparative period, primarily driven by the growth in revenues outpacing the growth in cost of revenues, sales and marketing, and general and administrative expenses.

Net income for the year ended December 31, 2025 increased $2,270 million as compared to the prior comparative period, primarily due to a $2,909 million increase in operating income, driven by a $6,182 million increase in revenues and partially offset by a $2,237 million increase in cost of revenues primarily due to the increase in content amortization and other cost of revenues. The impact of higher operating income was partially offset by a $487 million increase in the provision for income taxes.

Revenues

We primarily derive revenues from monthly membership fees for services related to streaming content to our members. We offer a variety of streaming membership plans, the price of which varies by country and the features of the plan. As of December 31, 2025, pricing on our paid plans ranged from the U.S. dollar equivalent of $1 to $37 per month, and pricing on our extra member sub accounts ranged from the U.S. dollar equivalent of $2 to $9 per month. We expect that from time to time the prices of our membership plans in each country may change and we may test other plan and price variations.

We also earn revenue from advertisements presented on our streaming service, consumer products, live experiences and various other sources. Revenues earned from sources other than monthly membership fees were not a material component of revenues for the years ended December 31, 2025, 2024, and 2023.

20

Table of Contents

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2023","","2025 vs. 2024"],["","","(in thousands, except percentages)"],["Revenues","","$","45,183,036","","","$","39,000,966","","","$","33,723,297","","","$","6,182,070","","","16","%"]]
[[/GREPCENT_TABLE]]

Revenues for the year ended December 31, 2025 increased 16% as compared to the year ended December 31, 2024, primarily due to the growth in memberships, price increases, and increased advertising revenue, partially offset by unfavorable changes in foreign exchange rates, net of hedging.

The following table summarizes streaming revenues by region for the years ended December 31, 2025, 2024 and 2023. Total streaming revenues are inclusive of hedging gains (losses) of $(91) million and $124 million for the years ended December 31, 2025 and 2024, respectively. No hedging gains and losses were recognized in total streaming revenues for the year ended December 31, 2023. See Note 8 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the Company’s derivative and non-derivative financial instruments.

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2023","","2025 vs. 2024"],["","","(in thousands, except revenue per membership and percentages)"],["United States and Canada (UCAN)","","$","19,957,152","","","$","17,359,369","","","$","14,873,783","","","$","2,597,783","","","15","%"],["Europe, Middle East, and Africa (EMEA)","","14,514,646","","","12,387,035","","","10,556,487","","","2,127,611","","","17","%"],["Latin America (LATAM)","","5,357,521","","","4,839,816","","","4,446,461","","","517,705","","","11","%"],["Asia-Pacific (APAC)","","5,353,717","","","4,414,746","","","3,763,727","","","938,971","","","21","%"],["Total Streaming Revenues","","$","45,183,036","","","$","39,000,966","","","$","33,640,458","","","$","6,182,070","","","16","%"]]
[[/GREPCENT_TABLE]]

Non-GAAP Constant Currency Information

We believe the non-GAAP financial measure of constant currency revenue is useful in analyzing period-to-period comparisons in revenues absent foreign currency fluctuations. However, this non-GAAP financial measure should be considered in addition to, not as a substitute for, or superior to other financial measures prepared in accordance with GAAP.

In order to exclude the effect of foreign currency rate fluctuations on revenue, we calculate current period revenue assuming foreign exchange rates had remained constant with foreign exchange rates from each of the corresponding months of the prior-year period and exclude the impact of hedging gains or losses realized as revenues. Constant currency percentage change in revenues is calculated as the percentage change between current period constant currency revenue and the prior comparative period revenue. The impact of hedging gains or losses is excluded from both the current and prior periods.

The table below summarizes constant currency streaming revenues by region for the year ended December 31, 2025 and the constant currency percentage change in streaming revenues by region for the year ended December 31, 2025 as compared to the year ended December 31, 2024:

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2025 vs. 2024"],["","","As Reported","","Constant Currency Adjustment","","Hedging (Gains) Losses Included in Revenues","","Constant Currency Revenues","","As Reported","","Hedging (Gains) Losses Included in Revenues","","Revenues Less Hedging Impact","","Reported Change","","Constant Currency Change"],["","","(in thousands, except percentages)"],["UCAN","","$","19,957,152","","","$","36,991","","","$","(29,791)","","","$","19,964,352","","","$","17,359,369","","","$","(11,181)","","","$","17,348,188","","","15","%","","15","%"],["EMEA","","14,514,646","","","(374,174)","","","137,768","","","14,278,240","","","12,387,035","","","(25,303)","","","12,361,732","","","17","%","","16","%"],["LATAM","","5,357,521","","","457,000","","","54,108","","","5,868,629","","","4,839,816","","","(58,454)","","","4,781,362","","","11","%","","23","%"],["APAC","","5,353,717","","","59,740","","","(70,942)","","","5,342,515","","","4,414,746","","","(29,073)","","","4,385,673","","","21","%","","22","%"],["Total Streaming Revenues","","$","45,183,036","","","$","179,557","","","$","91,143","","","$","45,453,736","","","$","39,000,966","","","$","(124,011)","","","$","38,876,955","","","16","%","","17","%"]]
[[/GREPCENT_TABLE]]

21

Table of Contents

Cost of Revenues

Cost of revenues primarily consists of the amortization of content assets. Other costs of revenues include expenses associated with the acquisition, licensing and production of content, streaming delivery costs, and other operating costs.

Expenses related to the acquisition, licensing and production of content not included in content amortization may include payroll, stock-based compensation, facilities, and other personnel-related expenses, costs associated with obtaining rights to music included in our content, overall deals with talent, miscellaneous production-related costs and participations and residuals. Streaming delivery costs are primarily related to our global content delivery network (“Open Connect”). We have built our own Open Connect network to help us efficiently stream a high volume of content to our members over the internet. Delivery expenses, therefore, include equipment costs related to Open Connect, payroll and related personnel expenses and all third-party costs, such as cloud computing costs, associated with delivering content over the internet. Other operating costs include customer service and payment processing fees, including those we pay to our integrated payment partners, as well as other costs incurred in making our content available to members.

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2023","","2025 vs. 2024"],["","","(in thousands, except percentages)"],["Cost of revenues","","$","23,275,329","","","$","21,038,464","","","$","19,715,368","","","$","2,236,865","","","11","%"],["As a percentage of revenues","","52","%","","54","%","","58","%"]]
[[/GREPCENT_TABLE]]

The increase in cost of revenues for the year ended December 31, 2025 as compared to the year ended December 31, 2024 was primarily due to a $1,121 million increase in content amortization relating to our existing and new content, coupled with a $1,116 million increase in other cost of revenues, primarily driven by non-income tax assessments in Brazil. We do not expect that non-income taxes incurred in Brazil will materially impact our results of operations in future periods. See Note 9 Commitments and Contingencies in the accompanying notes to our consolidated financial statements for further detail on our non-income tax matters.

Sales and Marketing

Sales and marketing expenses consist primarily of expenses for promotional activities such as digital and television advertising, and certain payments made to marketing and advertising sales partners. Our marketing partners include consumer electronics (“CE”) manufacturers, multichannel video programming distributors (“MVPDs”), mobile operators, and ISPs. Our advertising sales partners include advertising technology providers and advertising agencies. Sales and marketing expenses also include payroll, stock-based compensation, facilities, and other related expenses for personnel that support advertising sales and marketing activities.

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","Change"],["","","2025","","2024","","2023","","2025 vs. 2024"],["","","(in thousands, except percentages)"],["Sales and marketing","","$","3,301,306","","","$","2,917,554","","","$","2,657,883","","","$","383,752","","","13","%"],["As a percentage of revenues","","7","%","","7","%","","8","%"]]
[[/GREPCENT_TABLE]]

The inc

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/NFLX/mda/fy2025/
All MD&A years: /company/NFLX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/NFLX/mda/fy2024/): filed 2025-01-27; accession 0001065280-25-000044 (https://www.sec.gov/Archives/edgar/data/1065280/000106528025000044/nflx-20241231.htm)
- [FY 2023 MD&A](/company/NFLX/mda/fy2023/): filed 2024-01-26; accession 0001065280-24-000030 (https://www.sec.gov/Archives/edgar/data/1065280/000106528024000030/nflx-20231231.htm)
- [FY 2022 MD&A](/company/NFLX/mda/fy2022/): filed 2023-01-26; accession 0001065280-23-000035 (https://www.sec.gov/Archives/edgar/data/1065280/000106528023000035/nflx-20221231.htm)
- [FY 2021 MD&A](/company/NFLX/mda/fy2021/): filed 2022-01-27; accession 0001065280-22-000036 (https://www.sec.gov/Archives/edgar/data/1065280/000106528022000036/nflx-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7841 Services-Video Tape Rental) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/NFLX.md · JSON record: /company/NFLX.json · verified financials: /company/NFLX/financials.json / /company/NFLX/financials.csv · machine TOC for the whole site: /llms.txt