US · Nasdaq · NFLX
Netflix (NFLX) stock analysis: valuation and financials
Consumer Discretionary · Consumer Electronics/Video Chains
$70.75 +0.2% Price as of Oct 12, 2026
Scaled streaming franchise: 16% TTM revenue growth, 29.7% operating margin, 23.1% FCF margin, net debt 0.35x EBITDA, 21.5x P/E; WBD deal leverage is the swing factor.
- Market cap
- $292.7B
- P/E
- 21.4x
- EV/Sales
- 6.2x
- FCF yield
- 3.8%
- 52-week range
- $67.06 – $124.14
- Next earnings
- Oct 20, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth68
- Profitability79
- Cash flow87
- Balance sheet73
- Capital allocation96
- Innovation51
- Valuation67
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Consumers worldwide pay monthly membership fees for streaming TV series, films, games and live programming, with advertising, consumer products and live experiences still immaterial; streaming is the single operating segment and the profit engine, with FY2025 operating margin of 29.5% on $45.2B revenue and $11.0B net income.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $29.7B | $31.6B | $33.7B | $39.0B | $45.2B |
| Revenue growth | +18.8% | +6.5% | +6.7% | +15.6% | +15.9% |
| Gross margin | 41.6% | 39.4% | 41.5% | 46.1% | 48.5% |
| Operating margin | 20.9% | 17.8% | 20.6% | 26.7% | 29.5% |
| Net income | $5.1B | $4.5B | $5.4B | $8.7B | $11.0B |
| Free cash flow | -$132.0M | $1.6B | $6.9B | $6.9B | $9.5B |
| FCF margin | -0.4% | 5.1% | 20.5% | 17.7% | 20.9% |
Amounts in USD · What is free cash flow?
Margins Gross margin 46.1% FY2024 to 48.5% FY2025, operating margin 26.7% to 29.5%; TTM 49.1%/29.7%. Revenue growth of 15.9% (pricing, memberships, ads) outran content amortization; Q2 FY2026 operating margin slipped to 33.4% on faster opex growth.
- Cash flow HealthyFY2025 operating cash flow $10.15B versus net income $10.98B; TTM OCF $11.97B versus net income $13.65B, the TTM gap reflecting the one-off $2.8B WBD termination fee received in Q1 FY2026.
- Debt LowTotal debt $14.31B TTM against $9.10B cash; net debt $5.18B, just 0.35x EBITDA of $14.73B, with debt to equity at 0.47.
Balance sheet Leverage · Low
- Cash & short-term investments
- $9.1B
- Total debt
- $14.3B
- Net debt
- $5.2B
- Net debt / EBITDA
- 0.4x
- Interest coverage
- 16.9x
- Current ratio
- 1.1x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2025 revenue $45.18B, up 15.9% y/y, operating margin 29.5% versus 18.3% in FY2020, and ROIC up to 35.9% from 20.7% over five years.
- Credibility HighFY2025 objectives met or exceeded: revenue of $45.2B against the October 2025 $45.1B guidance, and reported FY2025 operating margin of 29.5% versus the then-29% target.
Of 14 guided figures checked: 10 beat, 2 in range, 2 missed.
Valuation range
Implied value per share · Price when researched: $70.75
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.