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CompareEarnings: May 31, 2026

Netflix Inc

Exchange: NASDAQSector: Communication ServicesIndustry: Entertainment

Netflix is 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. Important Information and Where to Find It In connection with the proposed transaction between Netflix and WBD, WBD filed a definitive proxy statement on Schedule 14A (the "Proxy Statement") with the U.S. Securities and Exchange Commission (the "SEC"). The Proxy Statement was first mailed to WBD stockholders on or around February 17, 2026. Each of Netflix and WBD may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This communication is not a substitute for the Proxy Statement or any other document that Netflix or WBD may file with the SEC or mail to WBD's stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF NETFLIX AND WBD ARE URGED TO READ THE PROXY STATEMENT, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING NETFLIX, WBD, THE PROPOSED TRANSACTION AND RELATED MATTERS.

Did you know?

NFLX's revenue grew at a 14.4% CAGR over the last 6 years.

Current Price

$98.66

+3.25%

GoodMoat Value

$104.07

5.5% undervalued
Profile
Valuation (TTM)
Market Cap$418.05B
P/E38.07
EV$401.08B
P/B15.71
Shares Out4.24B
P/Sales9.25
Revenue$45.18B
EV/EBITDA14.00

Netflix Inc (NFLX) Financial Statements

GoodMoat Analysis

Based on data as of March 26, 2026

Netflix demonstrates strong financial quality with high profitability and a healthy balance sheet, but its free cash flow generation is modest relative to its size. The company's revenue growth is robust, and its margins are expanding, indicating effective operating leverage. However, the valuation appears full, requiring careful consideration of future growth sustainability.

Read full analysis
Netflix exhibits several hallmarks of a high-quality business as defined by the framework. Its profitability metrics are exceptionally strong, with an operating margin of 29.5% and a return on equity of 41.3%, far exceeding the 15-20% ROIC threshold for quality. The 17.6% YoY revenue growth is consistent and double-digit, supporting a favourable growth assessment. Crucially, this growth is translating into margin expansion, indicating positive operating leverage where revenue growth outpaces operating expense growth. The balance sheet is healthy, with a moderate Debt/Equity ratio of 0.54, which is below the framework's cautionary threshold of 1.0x Debt/EBITDA. Free cash flow generation is positive, evidenced by the 2.4% FCF Yield, but this conversion rate is modest for a company of this scale and maturity when compared to the framework's ideal of a >10-15% FCF margin. The lack of a dividend is neutral for a growth company. Overall, the financial quality is strong, with the primary question for a value investor being whether the current valuation, reflected in a P/E of 35.6, adequately prices this quality and the durability of its high growth trajectory. Analysis based on data as of 2024-05-15.

NFLX Financial Data

EBITDA$30.25B
Revenue (TTM)$45.18B
Gross Profit (TTM)$21.91B
Gross Margin—
Operating Margin29.49%
ROE41.26%
ROA19.75%
Debt/Equity0.54
Current Ratio1.19
FCF$9.46B
FCF Yield2.26%
Piotroski F-Score—
Rev/Share (TTM)$10.66
50-Day MA$88.17
200-Day MA$107.13
Shares Outstanding4.24B

NFLX Computed Insights

FCF$9.46B
FCF Growth Rate—
EPS Growth (CAGR)—
WACC10.00%

Income Statement

Balance Sheet

Cash Flow Statement

NFLX Financial Statements & Data

Netflix Inc (NFLX) financial data including income statement, balance sheet, and cash flow statement. This page provides a comprehensive view of Netflix Inc's financial performance and position as a Communication Services company.

Trailing twelve-month (TTM) revenue is $45.18B. Gross profit (TTM) is $21.91B. EBITDA is $30.25B. Earnings per share (EPS) is $2.53. The P/E ratio is 38.07. Market capitalization is $418.05B.

Free cash flow (FCF) is $9.46B. Weighted average cost of capital (WACC) is 10.00%.

Historical revenue data covers 7 years from FY19 to FY25. Net income history spans 7 years. Free cash flow and capital expenditure data spans 7 years. GoodMoat displays interactive charts for revenue, net income, FCF vs CAPEX, and cash-to-debt ratios to help investors identify financial trends.

Use Netflix Inc's financial data to assess the company's earnings quality, balance sheet health, and cash generation. Compare key metrics across periods to identify trends before making investment decisions with GoodMoat's valuation tools.