# Netflix Inc. (NFLX)

> Netflix sells monthly access to television series, films, games and live programming, with an ad-supported plan and advertising.

- Exchange: Nasdaq · Sector: Communication Services · Industry: Entertainment
- Headquarters: Los Gatos, California
- Founded: 1997
- Employees: approximately 16,000 (December 31, 2025)
- SEC CIK: 0001065280 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001065280))
- Full page: https://inspectstocks.com/stocks/nflx
- Data as of: price 2026-09-29; newest filing used 2026-07-17; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $48.4B | $32.1B |
| Revenue growing recently | passed | $48.4B | $45.2B |
| Free cash flow positive | passed | $11.2B |  |
| Free cash flow growing overall | passed | $11.2B | $4.3B |
| Free cash flow growing recently | passed | $11.2B | $9.5B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 28.2% |  |
| Healthy profit margin | passed | 28.2% |  |
| Strong operating margin | passed | 29.7% |  |
| Good return on equity | passed | 51.3% |  |
| Debt under control | passed | 0.64 |  |
| Turns sales into cash | passed | 23.1% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $48.4B |
| Net income, trailing twelve months | $13.6B |
| Free cash flow, trailing twelve months | $11.2B |
| Net margin | 28.2% |
| Operating margin | 29.7% |
| Return on equity | 51.3% |
| Debt to equity | 0.64 |
| Diluted EPS, trailing twelve months | $2.77 |
| Share price | $70.31 |
| Market value | $292.8B |
| Price / earnings | 25.4x |
| Price / sales | 6.1x |

## What the business does

Netflix streams television series, films, games and live programming to members around the world. Members pay monthly and can change their plans. Netflix also earns advertising revenue from its ad-supported plan and is adding formats such as video podcasts.

### How it makes money

- **Streaming memberships and advertising** — Most revenue comes from monthly membership fees. The company also sells advertising on its ad-supported plan, but the supplied filings do not separate advertising revenue from membership revenue.

### Products

- **TV series and films** — Television shows and films that members stream, including licensed titles and productions Netflix makes or commissions.
- **Live programming** — Live events and other programming that members watch as it happens.
- **Games** — Mobile games and games streamed to televisions, including a separate Netflix Playground app with games for children.
- **Ad-supported subscription plan** — A monthly membership option that includes advertising.
- **Video podcasts and vertical video clips** — Video podcasts for members to watch and short vertical clips intended to help them find programs on mobile devices.

### Customers

- Individuals and households pay monthly membership fees for a chosen plan and can change plans.
- Advertisers pay to show ads to members using the ad-supported plan.

### Competitors

- Disney+ (DIS) — Competes for viewers' entertainment time and for rights to television series and films; Disney+ is a service of The Walt Disney Company.
- Amazon Prime Video (AMZN) — Competes for viewers' entertainment time and for rights to television series and films; Prime Video is an Amazon service.
- YouTube (GOOGL) — Competes for viewers' free time and video viewing; YouTube is a division of Alphabet.
- Apple TV+ (AAPL) — Competes for viewers' entertainment time and for rights to television series and films; Apple TV+ is an Apple service.

### What it depends on

- Netflix depends on studios, content providers and other rights holders for licenses to stream some titles and related rights.
- The service depends on partner devices to reach members and on Amazon Web Services for some parts of its operations.
- Netflix depends on payment processing and internet networks to collect membership fees and deliver streaming video.

### What could go wrong

- If Netflix does not attract and retain members by providing content and service improvements that members value, membership revenue could be affected; viewers can choose other video, games and social media for their free time.
- Rights holders may refuse to license titles on acceptable terms, while producing or licensing content can bring unforeseen costs and liabilities. Long-term content commitments can also limit financial flexibility.
- Disruptions to the technology Netflix relies on—including Amazon Web Services, partner devices or its own systems—could interrupt service or expose member information or content.

## More on this company

- [Overview](https://inspectstocks.com/stocks/nflx)
- [Financial statements](https://inspectstocks.com/stocks/nflx/financials)
- [Competitors](https://inspectstocks.com/stocks/nflx/peers)
- [Earnings](https://inspectstocks.com/stocks/nflx/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.