Netflix Inc.

10/20/2026 | Press release | Distributed by Public on 10/20/2026 14:01

Third Quarter 2026 Financial Statements

Income Statement

Netflix, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended Three Months Ended Nine Months Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, September 30,
2025 2025 2025 2025 2025 2026 2026 2026 2026
Revenues $ 10,542,801 $ 11,079,166 $ 11,510,307 $ 12,050,762 $ 45,183,036 $ 12,249,757 $ 12,559,938 $ 12,874,176 $ 37,683,871
Cost of revenues 5,263,147 5,325,311 6,164,250 6,522,621 23,275,329 5,888,238 6,036,965 6,079,016 18,004,219
Sales and marketing 688,370 713,265 786,295 1,113,376 3,301,306 842,217 823,838 837,051 2,503,106
Technology and development 822,823 824,683 853,584 890,300 3,391,390 959,696 1,007,675 1,033,142 3,000,513
General and administrative 421,462 441,213 457,931 567,802 1,888,408 602,609 498,850 466,367 1,567,826
Operating income 3,346,999 3,774,694 3,248,247 2,956,663 13,326,603 3,956,997 4,192,610 4,458,600 12,608,207
Other income (expense):
Interest expense (184,172) (182,649) (175,294) (234,395) (776,510) (262,077) (175,685) (184,701) (622,463)
Interest and other income (expense) 50,899 39,630 36,457 45,473 172,459 2,852,166 51,661 43,006 2,946,833
Income before income taxes 3,213,726 3,631,675 3,109,410 2,767,741 12,722,552 6,547,086 4,068,586 4,316,905 14,932,577
Provision for income taxes (323,375) (506,262) (562,494) (349,220) (1,741,351) (1,264,295) (667,172) (652,978) (2,584,445)
Net income $ 2,890,351 $ 3,125,413 $ 2,546,916 $ 2,418,521 $ 10,981,201 $ 5,282,791 $ 3,401,414 $ 3,663,927 $ 12,348,132
Earnings per share*:
Basic $ 0.68 $ 0.74 $ 0.60 $ 0.57 $ 2.58 $ 1.25 $ 0.81 $ 0.89 $ 2.95
Diluted $ 0.66 $ 0.72 $ 0.59 $ 0.56 $ 2.53 $ 1.23 $ 0.80 $ 0.87 $ 2.90
Weighted-average shares of common stock outstanding*:
Basic 4,272,695 4,252,112 4,244,553 4,229,221 4,249,512 4,222,787 4,189,303 4,134,463 4,181,861
Diluted 4,369,623 4,348,825 4,340,392 4,317,144 4,343,863 4,298,437 4,261,300 4,195,127 4,251,298
* Share and per share amounts have been retroactively adjusted to reflect the ten-for-one forward stock split which was effected on November 14, 2025.

Balance Sheet

Netflix, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands)
March 31, June 30, September 30, December 31, March 31, June 30, September 30,
2025 2025 2025 2025 2026 2026 2026
Assets
Current assets:
Cash and cash equivalents $ 7,199,848 $ 8,177,405 $ 9,287,287 $ 9,033,681 $ 12,259,772 $ 9,099,232 $ 8,194,275
Short-term investments 1,171,142 213,115 37,105 28,678 28,678 28,678 28,678
Other current assets 3,326,642 3,602,586 3,638,543 3,957,832 4,782,532 4,725,393 4,999,384
Total current assets 11,697,632 11,993,106 12,962,935 13,020,191 17,070,982 13,853,303 13,222,337
Content assets, net 32,040,839 32,089,394 32,639,879 32,778,392 33,376,295 33,837,573 34,605,477
Property and equipment, net 1,644,346 1,743,566 1,837,889 2,004,350 2,147,829 2,398,848 2,560,619
Other non-current assets 6,704,827 7,273,598 7,494,132 7,794,060 8,420,808 8,360,717 8,293,521
Total assets $ 52,087,644 $ 53,099,664 $ 54,934,835 $ 55,596,993 $ 61,015,914 $ 58,450,441 $ 58,681,954
Liabilities and Stockholders' Equity
Current liabilities:
Current content liabilities $ 4,128,905 $ 4,091,770 $ 4,102,640 $ 4,084,854 $ 4,052,278 $ 3,866,522 $ 3,885,069
Accounts payable 614,489 632,718 793,233 900,612 894,681 814,551 860,098
Accrued expenses and other liabilities 2,359,518 2,489,486 3,111,311 3,220,869 4,441,986 3,172,611 3,301,264
Deferred revenue 1,609,726 1,728,361 1,724,675 1,775,730 1,743,448 1,797,456 1,779,633
Short-term debt 1,005,881 - 0 - 0 998,865 999,185 2,483,758 2,474,796
Total current liabilities 9,718,519 8,942,335 9,731,859 10,980,930 12,131,578 12,134,898 12,300,860
Non-current content liabilities 1,696,662 1,606,404 1,591,973 1,579,476 1,626,498 1,625,600 1,723,034
Long-term debt 14,011,037 14,453,206 14,463,020 13,463,971 13,361,331 11,825,548 12,657,598
Other non-current liabilities 2,633,353 3,145,820 3,193,948 2,957,128 2,770,108 2,712,343 2,714,209
Total liabilities 28,059,571 28,147,765 28,980,800 28,981,505 29,889,515 28,298,389 29,395,701
Stockholders' equity:
Common stock 6,677,469 6,932,828 7,080,325 7,286,410 7,478,495 7,670,503 7,898,264
Treasury stock at cost (16,754,929) (18,392,942) (20,270,631) (22,372,658) (23,681,974) (28,387,657) (33,232,809)
Accumulated other comprehensive income (loss) (85,735) (904,668) (719,256) (580,382) (235,031) (97,117) (9,452)
Retained earnings 34,191,268 37,316,681 39,863,597 42,282,118 47,564,909 50,966,323 54,630,250
Total stockholders' equity 24,028,073 24,951,899 25,954,035 26,615,488 31,126,399 30,152,052 29,286,253
Total liabilities and stockholders' equity $ 52,087,644 $ 53,099,664 $ 54,934,835 $ 55,596,993 $ 61,015,914 $ 58,450,441 $ 58,681,954

Cashflow

Netflix, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended Twelve Months Ended Three Months Ended Nine Months Ended
March 31, June 30, September 30, December 31, December 31, March 31, June 30, September 30, September 30,
2025 2025 2025 2025 2025 2026 2026 2026 2026
Cash flows from operating activities:
Net income $ 2,890,351 $ 3,125,413 $ 2,546,916 $ 2,418,521 $ 10,981,201 $ 5,282,791 $ 3,401,414 $ 3,663,927 $ 12,348,132
Adjustments to reconcile net income to net cash
provided by operating activities:
Additions to content assets (3,549,657) (3,835,813) (4,653,935) (5,057,212) (17,096,617) (4,846,917) (4,927,523) (5,159,790) (14,934,230)
Change in content liabilities (411,253) (214,052) 24,262 (9,795) (610,838) 45,216 (181,794) 93,508 (43,070)
Amortization of content assets 3,823,112 3,832,074 4,002,744 4,764,236 16,422,166 4,217,900 4,311,309 4,235,454 12,764,663
Depreciation and amortization of property, equipment and intangibles 80,067 80,013 87,326 85,983 333,389 98,575 100,530 107,100 306,205
Stock-based compensation expense 71,977 80,862 80,986 134,624 368,449 140,405 131,312 133,723 405,440
Foreign currency remeasurement loss (gain) on debt 28,547 55,238 (1,707) (9,730) 72,348 (10,110) (8,813) (9,162) (28,085)
Other non-cash items 114,730 120,139 142,293 200,289 577,451 198,227 141,356 119,748 459,331
Deferred income taxes (163,928) (135,755) 20,539 (162,912) (442,056) 58,819 81,260 182,054 322,133
Changes in operating assets and liabilities:
Other current assets (131,367) (176,683) (169,597) (313,014) (790,661) (704,640) 111,713 (136,415) (729,342)
Accounts payable (276,426) 11,046 139,451 117,890 (8,039) 154 (157,397) 46,211 (111,032)
Accrued expenses and other liabilities 306,413 (267,235) 707,151 134,889 881,218 1,295,904 (1,249,793) 85,509 131,620
Deferred revenue 88,913 118,635 (3,686) 51,055 254,917 (32,282) 54,008 (17,823) 3,903
Other non-current assets and liabilities (82,280) (370,624) (97,569) (243,182) (793,655) (453,837) (63,770) (181,765) (699,372)
Net cash provided by operating activities 2,789,199 2,423,258 2,825,174 2,111,642 10,149,273 5,290,205 1,743,812 3,162,279 10,196,296
Cash flows from investing activities:
Purchases of property and equipment (128,277) (155,889) (164,719) (239,335) (688,220) (196,130) (218,644) (278,766) (693,540)
Acquisitions - 0 - 0 - 0 (17,194) (17,194) (585,744) - 0 - 0 (585,744)
Purchases of investments (156,015) (1,650) (3,850) (8,450) (169,965) - 0 - 0 (52,545) (52,545)
Proceeds from maturities and sales of investments 769,954 962,413 176,250 8,450 1,917,067 - 0 - 0 - 0 - 0
Other investing activities - 0 (36,190) 36,190 - 0 - 0 - 0 - 0 - 0 - 0
Net cash provided by (used in) investing activities 485,662 768,684 43,871 (256,529) 1,041,688 (781,874) (218,644) (331,311) (1,331,829)
Cash flows from financing activities:
Proceeds from issuance of debt - 0 - 0 - 0 - 0 - 0 - 0 - 0 992,550 992,550
Repayments of debt (800,000) (1,033,450) - 0 - 0 (1,833,450) - 0 - 0 - 0 - 0
Proceeds from issuance of common stock 351,602 169,066 70,215 76,082 666,965 49,310 59,980 74,674 183,964
Repurchases of common stock (3,536,396) (1,654,327) (1,856,885) (2,079,559) (9,127,167) (1,270,588) (4,714,403) (4,796,725) (10,781,716)
Taxes paid related to net share settlement of equity awards (27,870) (6,114) (6,196) (5,985) (46,165) (29,230) (6,631) (5,165) (41,026)
Other financing activities (15,652) 21,957 55,837 (67,948) (5,806) 19,694 (8,573) (20,306) (9,185)
Net cash used in financing activities (4,028,316) (2,502,868) (1,737,029) (2,077,410) (10,345,623) (1,230,814) (4,669,627) (3,754,972) (9,655,413)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 150,146 287,471 (21,721) (29,377) 386,519 (49,838) (19,628) 18,995 (50,471)
Net increase (decrease) in cash, cash equivalents, and restricted cash (603,309) 976,545 1,110,295 (251,674) 1,231,857 3,227,679 (3,164,087) (905,009) (841,417)
Cash, cash equivalents, and restricted cash beginning of period 7,807,337 7,204,028 8,180,573 9,290,868 7,807,337 9,039,194 12,266,873 9,102,786 9,039,194
Cash, cash equivalents, and restricted cash end of period $ 7,204,028 $ 8,180,573 $ 9,290,868 $ 9,039,194 $ 9,039,194 $ 12,266,873 $ 9,102,786 $ 8,197,777 $ 8,197,777
Non-GAAP free cash flow reconciliation:
Net cash provided by operating activities $ 2,789,199 $ 2,423,258 $ 2,825,174 $ 2,111,642 $ 10,149,273 $ 5,290,205 $ 1,743,812 $ 3,162,279 $ 10,196,296
Purchases of property and equipment (128,277) (155,889) (164,719) (239,335) (688,220) (196,130) (218,644) (278,766) (693,540)
Non-GAAP free cash flow $ 2,660,922 $ 2,267,369 $ 2,660,455 $ 1,872,307 $ 9,461,053 $ 5,094,075 $ 1,525,168 $ 2,883,513 $ 9,502,756

Regional Information

Netflix, Inc.
Revenue Information by Region
(unaudited)
(in thousands, except for percentages)
Three Months Ended Three Months Ended Change
March 31, 2025 March 31, 2024 Q1'25 vs. Q1'24
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 (1)
United States and Canada (UCAN) $ 4,617,098 $ 23,338 $ (14,552) $ 4,625,884 $ 4,224,315 $ 831 $ 4,225,146 9% 9%
Europe, Middle East, and Africa (EMEA) 3,404,676 146,975 (105,225) 3,446,426 2,958,193 4,687 2,962,880 15% 16%
Latin America (LATAM) 1,261,934 243,068 (13,936) 1,491,066 1,165,008 6,266 1,171,274 8% 27%
Asia-Pacific (APAC) 1,259,093 62,243 (31,083) 1,290,253 1,022,924 (543) 1,022,381 23% 26%
Three Months Ended Three Months Ended Change
June 30, 2025 June 30, 2024 Q2'25 vs. Q2'24
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 (1)
United States and Canada (UCAN) $ 4,929,003 $ 8,036 $ (6,431) $ 4,930,608 $ 4,295,560 $ (3,183) $ 4,292,377 15% 15%
Europe, Middle East, and Africa (EMEA) 3,538,175 (122,664) 42,049 3,457,560 3,007,772 (15,344) 2,992,428 18% 16%
Latin America (LATAM) 1,306,735 161,306 14,033 1,482,074 1,204,145 (1,759) 1,202,386 9% 23%
Asia-Pacific (APAC) 1,305,253 (16,166) (12,266) 1,276,821 1,051,833 (13,015) 1,038,818 24% 23%
Three Months Ended Three Months Ended Change
September 30, 2025 September 30, 2024 Q3'25 vs. Q3'24
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 (1)
United States and Canada (UCAN) $ 5,071,781 $ 1,816 $ (2,196) $ 5,071,401 $ 4,322,476 $ (3,265) $ 4,319,211 17% 17%
Europe, Middle East, and Africa (EMEA) 3,699,052 (199,597) 113,580 3,613,035 3,133,466 (1,857) 3,131,609 18% 15%
Latin America (LATAM) 1,370,913 53,678 26,300 1,450,891 1,240,892 (34,654) 1,206,238 10% 20%
Asia-Pacific (APAC) 1,368,561 (14,750) (8,319) 1,345,492 1,127,869 (8,408) 1,119,461 21% 20%
Three Months Ended Three Months Ended Change
December 31, 2025 December 31, 2024 Q4'25 vs. Q4'24
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 (1)
United States and Canada (UCAN) $ 5,339,270 $ 3,801 $ (6,612) $ 5,336,459 $ 4,517,018 $ (5,564) $ 4,511,454 18% 18%
Europe, Middle East, and Africa (EMEA) 3,872,743 (198,888) 87,364 3,761,219 3,287,604 (12,789) 3,274,815 18% 15%
Latin America (LATAM) 1,417,939 (1,052) 27,711 1,444,598 1,229,771 (28,307) 1,201,464 15% 20%
Asia-Pacific (APAC) 1,420,810 28,413 (19,274) 1,429,949 1,212,120 (7,107) 1,205,013 17% 19%
Twelve Months Ended Twelve Months Ended Change
December 31, 2025 December 31, 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 (1)
United States and Canada (UCAN) $ 19,957,152 $ 36,991 $ (29,791) $ 19,964,352 $ 17,359,369 $ (11,181) $ 17,348,188 15% 15%
Europe, Middle East, and Africa (EMEA) 14,514,646 (374,174) 137,768 14,278,240 12,387,035 (25,303) 12,361,732 17% 16%
Latin America (LATAM) 5,357,521 457,000 54,108 5,868,629 4,839,816 (58,454) 4,781,362 11% 23%
Asia-Pacific (APAC) 5,353,717 59,740 (70,942) 5,342,515 4,414,746 (29,073) 4,385,673 21% 22%
Three Months Ended Three Months Ended Change
March 31, 2026 March 31, 2025 Q1'26 vs. Q1'25
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 (1)
United States and Canada (UCAN) $ 5,245,298 $ (20,306) $ (463) $ 5,224,529 $ 4,617,098 $ (14,552) $ 4,602,546 14% 14%
Europe, Middle East, and Africa (EMEA) 3,998,419 (418,871) 113,651 3,693,199 3,404,676 (105,225) 3,299,451 17% 12%
Latin America (LATAM) 1,497,058 (60,512) 31,286 1,467,832 1,261,934 (13,936) 1,247,998 19% 18%
Asia-Pacific (APAC) 1,508,982 (40,823) (11,957) 1,456,202 1,259,093 (31,083) 1,228,010 20% 19%
Three Months Ended Three Months Ended Change
June 30, 2026 June 30, 2025 Q2'26 vs. Q2'25
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 (1)
United States and Canada (UCAN) $ 5,431,667 $ (4,883) $ (3,284) $ 5,423,500 $ 4,929,003 $ (6,431) $ 4,922,572 10% 10%
Europe, Middle East, and Africa (EMEA) 4,033,515 (130,725) 58,490 3,961,280 3,538,175 42,049 3,580,224 14% 11%
Latin America (LATAM) 1,584,290 (67,459) 11,494 1,528,325 1,306,735 14,033 1,320,768 21% 16%
Asia-Pacific (APAC) 1,510,466 28,880 (19,070) 1,520,276 1,305,253 (12,266) 1,292,987 16% 18%
Three Months Ended Three Months Ended Change
September 30, 2026 September 30, 2025 Q3'26 vs. Q3'25
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 (1)
United States and Canada (UCAN) $ 5,628,215 $ 7,492 $ (7,928) $ 5,627,779 $ 5,071,781 $ (2,196) $ 5,069,585 11% 11%
Europe, Middle East, and Africa (EMEA) 4,106,572 22,863 17,038 4,146,473 3,699,052 113,580 3,812,632 11% 9%
Latin America (LATAM) 1,602,603 (53,448) 12,849 1,562,004 1,370,913 26,300 1,397,213 17% 12%
Asia-Pacific (APAC) 1,536,786 50,803 (21,246) 1,566,343 1,368,561 (8,319) 1,360,242 12% 15%
Nine Months Ended Nine Months Ended Change
September 30, 2026 September 30, 2025 YTD'26 vs. YTD'25
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 (1)
United States and Canada (UCAN) $ 16,305,180 $ (17,697) $ (11,675) $ 16,275,808 $ 14,617,882 $ (23,179) $ 14,594,703 12% 12%
Europe, Middle East, and Africa (EMEA) 12,138,506 (526,733) 189,179 11,800,952 10,641,903 50,404 10,692,307 14% 10%
Latin America (LATAM) 4,683,951 (181,419) 55,629 4,558,161 3,939,582 26,397 3,965,979 19% 15%
Asia-Pacific (APAC) 4,556,234 38,860 (52,273) 4,542,821 3,932,907 (51,668) 3,881,239 16% 17%
(1) The Company believes 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.

FX Neutral

Netflix, Inc.
F/X Neutral Operating Margin
(unaudited)
(in thousands, except for percentages)
YTD
2026
As Reported
Revenue $ 37,683,871
Operating Expenses 25,075,664
Operating Profit $ 12,608,207
Operating Margin 33.5%
F/X Impact
Revenue $ 113,354
Operating Expenses 17,790
Operating Profit $ 95,564
Adjusted*
Revenue $ 37,570,517
Operating Expenses 25,057,874
Operating Profit $ 12,512,643
Operating Margin 33.3%
*Based on F/X rates at the beginning of each year including our F/X hedges at that time. Note: Excludes F/X impact on content amortization, as titles are amortized at a historical blended rate based on timing of spend. YTD 2026 through September 30, 2026.
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