Netflix, Inc.

Name: Netflix, Inc. financial statements and ratios
Creator: Annalist

NFLX · Nasdaq · Communication and media, video streaming · United States · US GAAP · Fiscal year ends December

Latest report: Q2 FY2026, the quarter ended 30 June 2026, released 17 July 2026. Snapshot FY2026Q2_68e5077c.

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Overview

Revenue, quarter

+13.4% year on year

Operating income, quarter

+11.1% year on year

Net income, quarter

+8.8% year on year

Diluted EPS, quarter

+11.1% year on year

Operating margin, last 4 quarters

+0.2pp year on year

Return on equity, last 4 quarters

+6.0pp year on year

Select a figure to see the document it came from.

Key Findings

Findings for the latest quarter, with their history over earlier quarters.

Revenue for the quarter ended 30 June 2026 was US$12.6 billion, 13.4% higher than in the same quarter a year earlier.
Weakenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Revenue against a year earlier · Sources 10-Q 2026-06
History of this finding, 9 records
1. Q2 FY2026 WeakenedRevenue for the quarter ended 30 June 2026 was US$12.6 billion, 13.4% higher than in the same quarter a year earlier.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 WeakenedRevenue for the quarter ended 31 March 2026 was US$12.2 billion, 16.2% higher than in the same quarter a year earlier.Reconstructed · data update
3. Q4 FY2025 ConfirmedRevenue for the quarter ended 31 December 2025 was US$12.1 billion, 17.6% higher than in the same quarter a year earlier.Reconstructed · data update
4. Q3 FY2025 StrengthenedRevenue for the quarter ended 30 September 2025 was US$11.5 billion, 17.2% higher than in the same quarter a year earlier.Reconstructed · data update
5. Q2 FY2025 StrengthenedRevenue for the quarter ended 30 June 2025 was US$11.1 billion, 15.9% higher than in the same quarter a year earlier.Reconstructed · data update
6. Q1 FY2025 WeakenedRevenue for the quarter ended 31 March 2025 was US$10.5 billion, 12.5% higher than in the same quarter a year earlier.Reconstructed · data update
7. Q4 FY2024 ConfirmedRevenue for the quarter ended 31 December 2024 was US$10.2 billion, 16.0% higher than in the same quarter a year earlier.Reconstructed · data update
8. Q3 FY2024 WeakenedRevenue for the quarter ended 30 September 2024 was US$9.8 billion, 15.0% higher than in the same quarter a year earlier.Reconstructed · data update
9. Q2 FY2024 NewRevenue for the quarter ended 30 June 2024 was US$9.6 billion, 16.8% higher than in the same quarter a year earlier.Reconstructed · initial
Net income attributable to the company was US$3.4 billion, 8.8% higher than in the same quarter a year earlier.
Weakenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Net income against a year earlier · Sources 10-Q 2026-06
History of this finding, 9 records
1. Q2 FY2026 WeakenedNet income attributable to the company was US$3.4 billion, 8.8% higher than in the same quarter a year earlier.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 StrengthenedNet income attributable to the company was US$5.3 billion, 82.8% higher than in the same quarter a year earlier.Reconstructed · data update
3. Q4 FY2025 StrengthenedNet income attributable to the company was US$2.4 billion, 29.4% higher than in the same quarter a year earlier.Reconstructed · data update
4. Q3 FY2025 WeakenedNet income attributable to the company was US$2.5 billion, 7.8% higher than in the same quarter a year earlier.Reconstructed · data update
5. Q2 FY2025 StrengthenedNet income attributable to the company was US$3.1 billion, 45.6% higher than in the same quarter a year earlier.Reconstructed · data update
6. Q1 FY2025 WeakenedNet income attributable to the company was US$2.9 billion, 23.9% higher than in the same quarter a year earlier.Reconstructed · data update
7. Q4 FY2024 StrengthenedNet income attributable to the company was US$1.9 billion, 99.2% higher than in the same quarter a year earlier.Reconstructed · data update
8. Q3 FY2024 WeakenedNet income attributable to the company was US$2.4 billion, 40.9% higher than in the same quarter a year earlier.Reconstructed · data update
9. Q2 FY2024 NewNet income attributable to the company was US$2.1 billion, 44.3% higher than in the same quarter a year earlier.Reconstructed · initial
The operating margin over the last 4 quarters was 29.7%, 0.2 percentage points higher than a year earlier.
Weakenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Operating margin against a year earlier · Sources 10-Q 2025-09, 10-K 2025-12, 10-Q 2026-03 and 1 more
History of this finding, 9 records
1. Q2 FY2026 WeakenedThe operating margin over the last 4 quarters was 29.7%, 0.2 percentage points higher than a year earlier.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 WeakenedThe operating margin over the last 4 quarters was 29.7%, 2.0 percentage points higher than a year earlier.Reconstructed · data update
3. Q4 FY2025 WeakenedThe operating margin over the last 4 quarters was 29.5%, 2.8 percentage points higher than a year earlier.Reconstructed · data update
4. Q3 FY2025 WeakenedThe operating margin over the last 4 quarters was 29.1%, 3.5 percentage points higher than a year earlier.Reconstructed · data update
5. Q2 FY2025 StrengthenedThe operating margin over the last 4 quarters was 29.5%, 5.7 percentage points higher than a year earlier.Reconstructed · data update
6. Q1 FY2025 WeakenedThe operating margin over the last 4 quarters was 27.7%, 5.2 percentage points higher than a year earlier.Reconstructed · data update
7. Q4 FY2024 WeakenedThe operating margin over the last 4 quarters was 26.7%, 6.1 percentage points higher than a year earlier.Reconstructed · data update
8. Q3 FY2024 StrengthenedThe operating margin over the last 4 quarters was 25.6%, 7.3 percentage points higher than a year earlier.Reconstructed · data update
9. Q2 FY2024 NewThe operating margin over the last 4 quarters was 23.8%, 6.3 percentage points higher than a year earlier.Reconstructed · initial
Return on equity over the last 4 quarters was 49.5%, against 43.5% a year earlier.
Weakenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Return on equity against a year earlier · Sources 10-Q 2025-06, 10-Q 2026-06, 10-Q 2025-09 and 3 more
History of this finding, 9 records
1. Q2 FY2026 WeakenedReturn on equity over the last 4 quarters was 49.5%, against 43.5% a year earlier.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 StrengthenedReturn on equity over the last 4 quarters was 48.5%, against 40.8% a year earlier.Reconstructed · data update
3. Q4 FY2025 WeakenedReturn on equity over the last 4 quarters was 42.8%, against 38.4% a year earlier.Reconstructed · data update
4. Q3 FY2025 WeakenedReturn on equity over the last 4 quarters was 42.9%, against 34.7% a year earlier.Reconstructed · data update
5. Q2 FY2025 StrengthenedReturn on equity over the last 4 quarters was 43.5%, against 31.6% a year earlier.Reconstructed · data update
6. Q1 FY2025 WeakenedReturn on equity over the last 4 quarters was 40.8%, against 29.8% a year earlier.Reconstructed · data update
7. Q4 FY2024 WeakenedReturn on equity over the last 4 quarters was 38.4%, against 26.1% a year earlier.Reconstructed · data update
8. Q3 FY2024 StrengthenedReturn on equity over the last 4 quarters was 34.7%, against 21.2% a year earlier.Reconstructed · data update
9. Q2 FY2024 NewReturn on equity over the last 4 quarters was 31.6%, against 20.3% a year earlier.Reconstructed · initial
Free cash flow over the last 4 quarters was US$11.2 billion, and operating cash flow was 0.9 times net income attributable to the company.
Interpretation. Operating cash flow paid for all capital expenditure, and the rest is free for dividends, share buybacks or debt repayment.
Weakenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Free cash flow · Sources 10-Q 2025-09, 10-K 2025-12, 10-Q 2026-03 and 1 more
History of this finding, 9 records
1. Q2 FY2026 WeakenedFree cash flow over the last 4 quarters was US$11.2 billion, and operating cash flow was 0.9 times net income attributable to the company.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 StrengthenedFree cash flow over the last 4 quarters was US$11.9 billion, and operating cash flow was 0.9 times net income attributable to the company.Reconstructed · data update
3. Q4 FY2025 StrengthenedFree cash flow over the last 4 quarters was US$9.5 billion, and operating cash flow was 0.9 times net income attributable to the company.Reconstructed · data update
4. Q3 FY2025 StrengthenedFree cash flow over the last 4 quarters was US$9.0 billion, and operating cash flow was 0.9 times net income attributable to the company.Reconstructed · data update
5. Q2 FY2025 StrengthenedFree cash flow over the last 4 quarters was US$8.5 billion, and operating cash flow was 0.9 times net income attributable to the company.Reconstructed · data update
6. Q1 FY2025 StrengthenedFree cash flow over the last 4 quarters was US$7.4 billion, and operating cash flow was 0.9 times net income attributable to the company.Reconstructed · data update
7. Q4 FY2024 ConfirmedFree cash flow over the last 4 quarters was US$6.9 billion, and operating cash flow was 0.8 times net income attributable to the company.Reconstructed · data update
8. Q3 FY2024 ConfirmedFree cash flow over the last 4 quarters was US$7.1 billion, and operating cash flow was 1.0 times net income attributable to the company.Reconstructed · data update
9. Q2 FY2024 NewFree cash flow over the last 4 quarters was US$6.8 billion, and operating cash flow was 1.0 times net income attributable to the company.Reconstructed · initial
Net debt was US$5.2 billion at 30 June 2026, 0.4 times EBITDA over the last 4 quarters.
Strengthenedin Q2 FY2026 · stated since Q2 FY2024
Rule: Net debt or net cash · Sources 10-Q 2026-06, 10-Q 2025-09, 10-K 2025-12 and 1 more
History of this finding, 9 records
1. Q2 FY2026 StrengthenedNet debt was US$5.2 billion at 30 June 2026, 0.4 times EBITDA over the last 4 quarters.Recorded from FY2026Q2_ccba5032 · data update
2. Q1 FY2026 WeakenedNet debt was US$2.1 billion at 31 March 2026, 0.1 times EBITDA over the last 4 quarters.Reconstructed · data update
3. Q4 FY2025 StrengthenedNet debt was US$5.4 billion at 31 December 2025, 0.4 times EBITDA over the last 4 quarters.Reconstructed · data update
4. Q3 FY2025 WeakenedNet debt was US$5.1 billion at 30 September 2025, 0.4 times EBITDA over the last 4 quarters.Reconstructed · data update
5. Q2 FY2025 WeakenedNet debt was US$6.1 billion at 30 June 2025, 0.5 times EBITDA over the last 4 quarters.Reconstructed · data update
6. Q1 FY2025 StrengthenedNet debt was US$6.6 billion at 31 March 2025, 0.6 times EBITDA over the last 4 quarters.Reconstructed · data update
7. Q4 FY2024 WeakenedNet debt was US$6.0 billion at 31 December 2024, 0.6 times EBITDA over the last 4 quarters.Reconstructed · data update
8. Q3 FY2024 WeakenedNet debt was US$6.8 billion at 30 September 2024, 0.7 times EBITDA over the last 4 quarters.Reconstructed · data update
9. Q2 FY2024 NewNet debt was US$7.3 billion at 30 June 2024, 0.8 times EBITDA over the last 4 quarters.Reconstructed · initial

Records before Q2 FY2026 are reconstructed from the latest snapshot. Ledger: findings.json. Correction of 20 October 2026: 3 quarterly gross profits of 2020 and the income taxes paid of 2020 to 2022 rested on lines that Netflix does not use at its latest dates and are no longer published. Research and development of the fourth quarter of 2020 now comes from one set of filings, US$641 million where US$487 million was published. No finding cites the figures. Correction of 22 October 2026: Changes against a year earlier compared 2 figures of different bases where a stock split, a spin-off or a restatement came between the 2 periods. 3 growth values changed, among them diluted earnings per share growth for fiscal 2023, minus 87.9% before the correction and 20.9% on one basis. No finding states the changes concerned.

Credit, liquidity, earnings quality and score findings: Analysis.

Data

Source documents26 documents, latest Form 10-Q, period ended 30 June 2026List

DownloadsExcel workbook · JSON

SnapshotFY2026Q2_68e5077c

Corporate Events

Stock split23 January 2026
The filing reported a stock split of 10 for 1.
Source 10-K 2025-12

Earnings, Returns and Balance Sheet

Revenue

By quarter, US dollars

Operating Income

By quarter, US dollars

Net Income Attributable to the Company

By quarter, US dollars

Margins

Last 4 quarters at each quarter end, per cent

Returns

Last 4 quarters, per cent

Free Cash Flow

Operating cash flow less capital expenditure, by quarter, US dollars

Net Debt

Total debt less cash and short-term investments, at quarter end, US dollars

Diluted Earnings per Share

By quarter, as reported

Financial Statements

Figures as filed. Select a figure for its source document and method; a small d marks a quarter derived from cumulative reports.

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Ratios

Select a ratio for its formula and the figures it uses, each with its document; (i) gives its definition.

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Analysis

Credit update

Q2 FY2026

Form 10-Q, period ended 30 June 2026, filed 17 July 2026. Changes are against the previous report, and each figure shows its period.

6changes1threshold crossed

Changes in This Report 6

WeakenedRevenue Against a Year Earlier10-Q 2026-06
Revenue for the quarter ended 30 June 2026 was US$12.6 billion, 13.4% higher than in the same quarter a year earlier.
Earlier record, Q1 FY2026
Revenue for the quarter ended 31 March 2026 was US$12.2 billion, 16.2% higher than in the same quarter a year earlier.
WeakenedNet Income Against a Year Earlier10-Q 2026-06
Net income attributable to the company was US$3.4 billion, 8.8% higher than in the same quarter a year earlier.
Earlier record, Q1 FY2026
Net income attributable to the company was US$5.3 billion, 82.8% higher than in the same quarter a year earlier.
WeakenedOperating Margin Against a Year Earlier10-Q 2026-06
The operating margin over the last 4 quarters was 29.7%, 0.2 percentage points higher than a year earlier.
Earlier record, Q1 FY2026
The operating margin over the last 4 quarters was 29.7%, 2.0 percentage points higher than a year earlier.
WeakenedReturn on Equity Against a Year Earlier10-Q 2026-06
Return on equity over the last 4 quarters was 49.5%, against 43.5% a year earlier.
Earlier record, Q1 FY2026
Return on equity over the last 4 quarters was 48.5%, against 40.8% a year earlier.

2 more changes

WeakenedFree Cash Flow10-Q 2026-06
Free cash flow over the last 4 quarters was US$11.2 billion, and operating cash flow was 0.9 times net income attributable to the company.
Earlier record, Q1 FY2026
Free cash flow over the last 4 quarters was US$11.9 billion, and operating cash flow was 0.9 times net income attributable to the company.
StrengthenedNet Debt or Net Cash10-Q 2026-06
Net debt was US$5.2 billion at 30 June 2026, 0.4 times EBITDA over the last 4 quarters.
Earlier record, Q1 FY2026
Net debt was US$2.1 billion at 31 March 2026, 0.1 times EBITDA over the last 4 quarters.

Thresholds Crossed 1

ConfirmedCash Backing of Earnings
Net income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 3.0% of average total assets.
Interpretation. Part of the profit has not come in as cash yet: net income was larger than operating cash flow. Profit made of accounting entries tends to repeat less than profit backed by cash (Sloan, 1996).

Fiscal years and the latest quarter, with flows over the last 4 quarters and balances at the quarter end. Select a value for its formula and the figures it uses.

Credit MetricsDebt to EBITDA 1.06x, FFO to debt 71.7% · Q2 FY2026

Lease-adjusted debt, EBITDA and cash flow on the definitions of S&P and Moody's, as far as the filings allow.

Lease-adjusted debt was 1.1 times adjusted EBITDA over the last 4 quarters, and funds from operations equalled 71.7% of that debt. Both ratios are within the minimal band of the S&P standard volatility table. The lease figures that the quarters do not report are estimated from the lease cost of fiscal 2025.
Interpretation. Debt to EBITDA shows how many years of EBITDA the debt equals, and FFO to debt the share of the debt that 1 year of cash flow after interest and taxes would repay. The S&P table sorts both into 6 bands; the minimal band is number 1 of 6, and a higher number means more debt against earnings.
Confirmedin Q2 FY2026 · stated since FY2025
Rule: Debt against the S&P benchmark bands · Sources 10-Q 2026-06, 10-Q 2025-09, 10-K 2025-12 and 2 more
History of this finding, 7 records
1. Q2 FY2026 ConfirmedLease-adjusted debt was 1.1 times adjusted EBITDA over the last 4 quarters, and funds from operations equalled 71.7% of that debt. Both ratios are within the minimal band of the S&P standard volatility table. The lease figures that the quarters do not report are estimated from the lease cost of fiscal 2025.Recorded from FY2026Q2_f5b57bdf · methodology
2. FY2025 ConfirmedLease-adjusted debt was 1.2 times adjusted EBITDA for fiscal 2025, and funds from operations equalled 67.7% of that debt. Both ratios are within the minimal band of the S&P standard volatility table.Recorded from FY2026Q2_f5b57bdf · methodology
3. FY2025 NewLease-adjusted debt was 1.2 times adjusted EBITDA for fiscal 2025, and funds from operations equalled 67.7% of that debt. Both ratios are within the minimal band of the S&P standard volatility table.Reconstructed · data update
4. Q4 FY2025 RetiredThe finding changed to the minimal band.Reconstructed · data update
5. FY2024 NewLease-adjusted debt was 1.6 times adjusted EBITDA for fiscal 2024, and funds from operations equalled 50.5% of that debt. Both ratios are within the modest band of the S&P standard volatility table.Reconstructed · data update
6. Q4 FY2024 RetiredThe finding changed to the modest band.Reconstructed · data update
7. FY2023 NewLease-adjusted debt was 2.1 times adjusted EBITDA for fiscal 2023, and funds from operations equalled 36.3% of that debt. Both ratios are within the intermediate band of the S&P standard volatility table.Reconstructed · initial

Position in the S&P Standard Volatility Table, Last 4 Quarters to Q2 FY2026

S&P sorts companies into 6 bands by debt against earnings and cash flow, from the least debt to the most.

Debt equals 1.1 years of adjusted EBITDA; a year of funds from operations equals 71.7% of it.

Band	Minimal	Modest	Intermediate	Significant	Aggressive	Highly leveraged
Debt to EBITDA	1.06xbelow 1.5x	1.5x to 2x	2x to 3x	3x to 4x	4x to 5x	5x and above
FFO to debt	71.7%60% and above	45% to 60%	30% to 45%	20% to 30%	12% to 20%	below 12%

By Fiscal Year

Ratio	FY202131 Dec 2021	FY202231 Dec 2022	FY202331 Dec 2023	FY202431 Dec 2024	FY202531 Dec 2025	Q2 FY2026latest quarter
Lease-adjusted debtBorrowings plus the obligations of long-term leases, such as rents of stores, offices and warehouses, which credit analysts count as debt.Total debt + operating lease liabilities
Adjusted EBITDAOperating profit before depreciation, amortisation, goodwill impairment, pay in shares and lease costs: the earnings that credit analysts set against lease-adjusted debt.EBIT + depreciation and amortisation + goodwill impairment + share-based compensation + operating lease cost						est.
Funds from operationsAdjusted EBITDA less interest and tax paid in cash: the cash the business produces each year for investment, dividends and debt repayment.Adjusted EBITDA - cash interest - lease interest - cash taxes						est.
Debt to EBITDALease-adjusted debt measured in years of adjusted EBITDA. A figure of 3 means debt equals 3 years of those earnings; a lower figure means less debt against earnings.Lease-adjusted debt / adjusted EBITDA	intermediate	intermediate	intermediate	modest	minimal	est.minimal
FFO to debtFunds from operations as a share of lease-adjusted debt. A figure of 25% means a year of those funds equals a quarter of the debt; a higher figure means less debt.Funds from operations / lease-adjusted debt	intermediate	intermediate	intermediate	modest	minimal	est.minimal
Net debt to adjusted EBITDADebt to EBITDA after cash and short-term investments are set against the debt.(Lease-adjusted debt - cash - short-term investments) / adjusted EBITDA						est.
Operating cash flow to debtOperating cash flow, with lease costs added back, as a share of lease-adjusted debt. A higher share means the debt could be repaid sooner from operating cash.Lease-adjusted operating cash flow / lease-adjusted debt						est.
Free operating cash flow to debtOperating cash flow less capital spending, as a share of lease-adjusted debt: the cash left for the debt after the company maintains and expands its assets.(Lease-adjusted operating cash flow - capital expenditure) / lease-adjusted debt						est.
Discretionary cash flow to debtCash left after capital spending, dividends and share repurchases, as a share of lease-adjusted debt. A negative figure means the company paid out more than it generated.(Lease-adjusted operating cash flow - capital expenditure - dividends - repurchases of common stock) / lease-adjusted debt						est.
Retained cash flow to net debtFunds from operations left after dividends, as a share of debt net of cash.(FFO - dividends) / (lease-adjusted debt - cash - short-term investments)						est.
FFO cash interest coverThe number of times cash earnings cover cash interest, lease interest included.(FFO + cash interest + lease interest) / (cash interest + lease interest)						est.
EBITDA interest coverThe number of times adjusted EBITDA covers interest, lease interest included.Adjusted EBITDA / (interest expense + lease interest)						est.
EBITA interest coverOperating profit before the amortisation of acquired intangible assets and goodwill impairment, divided by interest expense.(EBIT + amortisation of intangible assets + goodwill impairment) / interest expense
Liquid assets to debtCash and short-term investments as a share of lease-adjusted debt: the part of the debt that cash on hand could repay at once.(Cash + short-term investments) / lease-adjusted debt

Reconciliation of the Credit Figures

Item	FY202131 Dec 2021	FY202231 Dec 2022	FY202331 Dec 2023	FY202431 Dec 2024	FY202531 Dec 2025	Q2 FY2026latest quarter
Total debt	$15.4bn	$14.4bn	$14.5bn	$15.6bn	$14.5bn	$14.3bn
Operating lease liabilities	$2.7bn	$2.6bn	$2.4bn	$2.4bn	$2.5bn	$2.3bn
Lease-adjusted debt	$18.1bn	$16.9bn	$17.0bn	$18.0bn	$17.0bn	$16.6bn
EBIT	$6.2bn	$5.6bn	$7.0bn	$10.4bn	$13.3bn	$14.4bn
Depreciation and amortisation	$208m	$337m	$357m	$329m	$333m	$372m
Goodwill impairment	$0	$0	$0	$0	$0	$0
Share-based compensation	$403m	$575m	$339m	$273m	$368m	$487m
Operating lease cost	$390m	$414m	$431m	$468m	$504m	$504m
Adjusted EBITDA	$7.2bn	$7.0bn	$8.1bn	$11.5bn	$14.5bn	$15.7bn
Cash interest	−$763m	−$702m	−$685m	−$675m	−$719m	−$847m
Lease interest	−$76.3m	−$84.8m	−$82.6m	−$84.7m	−$93.6m	−$91.4m
Cash taxes	−$724m	−$772m	−$1.2bn	−$1.6bn	−$2.2bn	−$2.8bn
Funds from operations	$5.6bn	$5.4bn	$6.2bn	$9.1bn	$11.5bn	$11.9bn

Method

Lease-adjusted debt is total debt plus operating lease liabilities, before the deduction of cash. Adjusted EBITDA adds goodwill impairment, share-based compensation and operating lease cost to EBIT and depreciation and amortisation; restructuring and litigation charges, other impairments and profits on disposals stay in EBIT. FFO deducts cash interest, lease interest and cash taxes.
Lease interest is the average operating lease liability times the weighted average discount rate of the leases, or the implied cost of debt where the rate is not reported.
S&P applies its table to its own adjusted figures, which also deduct surplus cash and adjust for pensions and other items, so the band of an S&P calculation can differ.
Operating lease cost is reported in the annual report only. Over the last 4 quarters, the lease figures that the quarters do not report are estimated from the latest fiscal year, and every value computed with such an estimate is marked.

Liquidity and MaturitiesLiquidity cover 6.39x, Debt due within 12 months $2.5bn · Q2 FY2026

Cash and operating cash flow against debt due within 12 months, capital expenditure and dividends.

Cash, short-term investments and operating cash flow over the last 4 quarters equalled 6.4 times the sum of debt due within 12 months, capital expenditure and dividends.
Interpretation. Cash on hand and 1 year of operating cash flow pay for the debt due in the next 12 months, capital expenditure and dividends, without new borrowing. Undrawn credit lines are not counted.
Confirmedin Q2 FY2026 · stated since Q2 FY2024
Rule: Liquidity cover · Sources 10-Q 2026-06, 10-Q 2025-09, 10-K 2025-12 and 1 more
History of this finding, 11 records
1. Q2 FY2026 ConfirmedCash, short-term investments and operating cash flow over the last 4 quarters equalled 6.4 times the sum of debt due within 12 months, capital expenditure and dividends.Recorded from FY2026Q2_f5b57bdf · methodology
2. Q2 FY2026 ConfirmedCash, short-term investments and operating cash flow over the last 4 quarters equalled 6.4 times the sum of debt due within 12 months, capital expenditure and dividends.Recorded from FY2026Q2_f5b57bdf · methodology
3. Q2 FY2026 WeakenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 6.4 times the sum of debt due within 12 months, capital expenditure and dividends.Recorded from FY2026Q2_ccba5032 · data update
4. Q1 FY2026 StrengthenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 14.2 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
5. Q4 FY2025 WeakenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 11.4 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
6. Q3 FY2025 ConfirmedCash, short-term investments and operating cash flow over the last 4 quarters equalled 31.1 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
7. Q2 FY2025 StrengthenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 30.6 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
8. Q1 FY2025 StrengthenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 10.9 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
9. Q4 FY2024 ConfirmedCash, short-term investments and operating cash flow over the last 4 quarters equalled 7.6 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
10. Q3 FY2024 StrengthenedCash, short-term investments and operating cash flow over the last 4 quarters equalled 7.7 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · data update
11. Q2 FY2024 NewCash, short-term investments and operating cash flow over the last 4 quarters equalled 6.5 times the sum of debt due within 12 months, capital expenditure and dividends.Reconstructed · initial

Sources and Uses, Last 4 Quarters to Q2 FY2026

Sources	Amount
Cash and short-term investments	$9.1bn
Operating cash flow	$12.0bn
Sources	$21.1bn

Uses	Amount
Debt due within 12 months	$2.5bn
Capital expenditure	$819m
Dividends paid	$0
Uses	$3.3bn

Liquidity cover 6.39x

By Fiscal Year

Ratio	FY202131 Dec 2021	FY202231 Dec 2022	FY202331 Dec 2023	FY202431 Dec 2024	FY202531 Dec 2025	Q2 FY2026latest quarter
Liquidity coverCash on hand plus a year of operating cash flow, against the cash needed in the next 12 months for maturing debt, capital spending and dividends. Above 1, these sources cover the uses without new borrowing.(Cash + short-term investments + operating cash flow) / (debt due within 12 months + capital expenditure + dividends); the flows of the fiscal year or of the last 4 quarters are taken as those of the next 12 months, and undrawn facilities are not included
Debt due within 12 monthsBorrowings due within the next 12 months, which the company must repay or refinance.The larger of long-term debt maturing within 12 months in the maturity schedule and the current portion of long-term debt, + short-term borrowings

Method

Debt due within 12 months is the larger of the first year of the maturity schedule and the current portion of long-term debt, plus short-term borrowings. The schedule of a quarterly report can cover the rest of the fiscal year only and leaves out finance leases.
Capital expenditure and dividends of the fiscal year, or of the last 4 quarters, are taken as those of the next 12 months. Undrawn credit facilities are not included.

Earnings QualityEarnings above cash flowCash-flow accruals 3.0%, Operating cash flow to EBITDA 0.81x · Q2 FY2026

Accruals and the cash backing of reported earnings.

Net income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 3.0% of average total assets.
Interpretation. Part of the profit has not come in as cash yet: net income was larger than operating cash flow. Profit made of accounting entries tends to repeat less than profit backed by cash (Sloan, 1996).
Confirmedin Q2 FY2026 · stated since Q3 FY2024
Rule: Cash backing of earnings · Sources 10-Q 2025-06, 10-Q 2026-06, 10-Q 2025-09 and 2 more
History of this finding, 11 records
1. Q2 FY2026 ConfirmedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 3.0% of average total assets.Recorded from FY2026Q2_f5b57bdf · methodology
2. Q2 FY2026 StrengthenedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 3.0% of average total assets.Recorded from FY2026Q2_ccba5032 · data update
3. Q1 FY2026 ConfirmedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 1.3% of average total assets.Reconstructed · data update
4. Q4 FY2025 ConfirmedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 1.5% of average total assets.Reconstructed · data update
5. Q3 FY2025 WeakenedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 1.6% of average total assets.Reconstructed · data update
6. Q2 FY2025 ConfirmedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 2.3% of average total assets.Reconstructed · data update
7. Q1 FY2025 ConfirmedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 2.6% of average total assets.Reconstructed · data update
8. Q4 FY2024 StrengthenedNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 2.6% of average total assets.Reconstructed · data update
9. Q3 FY2024 NewNet income attributable to the company over the last 4 quarters exceeded operating cash flow by an amount equal to 0.6% of average total assets.Reconstructed · data update
10. Q3 FY2024 RetiredThe finding changed to earnings led by accruals.Reconstructed · data update
11. Q2 FY2024 NewOperating cash flow over the last 4 quarters exceeded net income attributable to the company by an amount equal to 0.1% of average total assets.Reconstructed · initial

Net Income and Operating Cash Flow

Last 4 quarters at each quarter end, US dollars

By Fiscal Year

Ratio	FY202131 Dec 2021	FY202231 Dec 2022	FY202331 Dec 2023	FY202431 Dec 2024	FY202531 Dec 2025	Q2 FY2026latest quarter
Cash-flow accrualsNet income less operating cash flow, against average assets: the part of profit not received in cash in the same period. Research associates high accruals with lower earnings in later years; a negative figure means cash exceeded profit.(Net income attributable to the company - operating cash flow) / average total assets
Balance sheet accrualsThe same gap between profit and cash, measured from the changes in the balance sheet (Sloan, 1996).[(Change in current assets - change in cash) - (change in current liabilities - change in short-term debt - change in taxes payable) - depreciation and amortisation] / average total assets (Sloan, 1996)
Total accrualsAccruals that also cover long-term operating and financial assets and liabilities (Richardson, Sloan, Soliman and Tuna, 2005). Acquisitions raise the figure.Change in net operating working capital, net non-current operating assets and net financial assets / average total assets (Richardson, Sloan, Soliman and Tuna, 2005)
Operating cash flow to EBITDAOperating cash flow against EBITDA: the part of operating profit before depreciation that turns into cash after interest, tax and changes in stock, receivables and payables.Operating cash flow / (operating income + depreciation and amortisation)
Free cash flow to net incomeFree cash flow against net income. Below 1, investment and working capital take up part of the profit.(Operating cash flow - capital expenditure) / net income attributable to the company
Working capital investment to revenueCash put into receivables and stock, less extra credit from suppliers and customers, as a share of revenue. A positive figure means growth or slower collection uses cash.(Increase in receivables + increase in inventories - increase in payables - increase in contract liabilities) / revenue

Method

Cash-flow accruals are net income attributable to the company less operating cash flow, over average total assets. Balance sheet accruals follow Sloan (1996) and total accruals Richardson, Sloan, Soliman and Tuna (2005).
Balance sheet and total accruals include the assets and liabilities that acquisitions bring in and disposals take out; cash-flow accruals exclude them.

Forensic and Distress ScoresAltman Z'' 5.29, Piotroski 7 of 9 · Last 4 quarters 5.80 at Q2 FY2026 · FY2025

Published distress and misstatement models, with their original coefficients and thresholds.

The Altman Z'' score for fiscal 2025 was 5.29, above the safe threshold of 2.60.
Interpretation. By this model, the balance sheet and earnings look like those of companies that did not go bankrupt in its original study: above 2.60 means safe, below 1.10 distress.
Strengthenedin FY2025 · stated since FY2023
Rule: Altman Z'' zone · Sources 10-Q 2026-06, 10-K 2025-12
History of this finding, 3 records
1. FY2025 StrengthenedThe Altman Z'' score for fiscal 2025 was 5.29, above the safe threshold of 2.60.Reconstructed · data update
2. FY2024 StrengthenedThe Altman Z'' score for fiscal 2024 was 4.39, above the safe threshold of 2.60.Reconstructed · data update
3. FY2023 NewThe Altman Z'' score for fiscal 2023 was 3.38, above the safe threshold of 2.60.Reconstructed · initial
The Piotroski F-score for fiscal 2025 was 7 of 9. The 2 signals not met were operating cash flow above net income and current ratio higher than a year earlier.
Interpretation. The score counts how many of 9 tests of profit, debt, liquidity and efficiency the company passes. A score of 7 to 9 is the strongest group: Piotroski (2000) placed 0 to 3 in the weakest.
Weakenedin FY2025 · stated since FY2023
Rule: Piotroski F-score · Sources 10-K 2024-12, 10-K 2025-12, 10-Q 2026-06
History of this finding, 3 records
1. FY2025 WeakenedThe Piotroski F-score for fiscal 2025 was 7 of 9. The 2 signals not met were operating cash flow above net income and current ratio higher than a year earlier.Reconstructed · data update
2. FY2024 StrengthenedThe Piotroski F-score for fiscal 2024 was 8 of 9. The signal not met was operating cash flow above net income.Reconstructed · data update
3. FY2023 NewThe Piotroski F-score for fiscal 2023 was 7 of 9. The 2 signals not met were current ratio higher than a year earlier and asset turnover higher than a year earlier.Reconstructed · initial

By Fiscal Year

Ratio	FY202131 Dec 2021	FY202231 Dec 2022	FY202331 Dec 2023	FY202431 Dec 2024	FY202531 Dec 2025	Q2 FY2026latest quarter
Altman Z'' scoreA measure of the risk of financial distress, built from working capital, retained earnings, operating profit and equity. Above 2.60 the model counts a company as safe and below 1.10 as in distress; between the 2 is a grey zone.6.56 x working capital / total assets + 3.26 x retained earnings / total assets + 6.72 x EBIT / total assets + 1.05 x total equity / total liabilities (Altman, 1995); distress zone below 1.10, safe zone above 2.60	grey zone	safe zone	safe zone	safe zone	safe zone	safe zone
Piotroski F-scoreA count of 9 yes or no tests on profitability, cash flow, debt, liquidity, new shares, margins and the use of assets. A score of 7 to 9 indicates improving strength and 0 to 3 indicates weakness.Number of 9 binary signals met on profitability, cash flow, debt, liquidity, equity issuance, margin and asset turnover (Piotroski, 2000)	n/a					n/a

Altman Z'' Score

fiscal 2025

A measure of the risk of financial distress, built from working capital, retained earnings, operating profit and equity. Above 2.60 the model counts a company as safe and below 1.10 as in distress; between the 2 is a grey zone.

Distress zone, below 1.10

Grey zone, 1.10 to 2.60

5.29Safe zone, above 2.60

The score of 5.29 is in the safe zone of the model, above 2.60. The largest part is retained earnings, at 2.48.

Part	Value	Coefficient	Contribution
Working capital / total assetsCurrent assets less current liabilities, against total assets: the short-term funds available for operations.	0.037	6.560	0.241
Retained earnings / total assetsProfits kept in the business over its life, against total assets.	0.761	3.260	2.479
EBIT / total assetsOperating profit against total assets: the earning power of the assets.	0.240	6.720	1.611
Total equity / total liabilitiesBook equity against liabilities: how far the assets could fall in value before liabilities exceed them.	0.918	1.050	0.964
Score			5.295

Altman, Hartzell and Peck (1995), for non-manufacturing companies. The model omits the ratio of sales to total assets of the 1968 model and uses book equity. Working capital below zero and equity reduced by share repurchases lower the score.

Piotroski F-score

fiscal 2025

A count of 9 yes or no tests on profitability, cash flow, debt, liquidity, new shares, margins and the use of assets. A score of 7 to 9 indicates improving strength and 0 to 3 indicates weakness.

7 of the 9 tests are met, in the high group of 7 to 9.

Signal	FY2025	FY2024
Return on assets above zero	Met	Met
Operating cash flow above zero	Met	Met
Return on assets higher than a year earlier	Met	Met
Operating cash flow above net income	Not met	Not met
Long-term debt to assets lower than a year earlier	Met	Met
Current ratio higher than a year earlier	Not met	Met
No common equity issued	Met	Met
Margin higher than a year earlier	Met	Met
Asset turnover higher than a year earlier	Met	Met

Piotroski (2000), 9 signals on profitability, funding and operating efficiency, designed for companies with high book-to-market ratios. Piotroski grouped scores of 8 and 9 as high and 0 and 1 as low; the findings group 7 to 9 and 0 to 3.

Source Documents

Documents of this snapshot, latest first.

Document	Date	Id
Form 10-Q, period ended 30 June 2026	17 Jul 2026	10-Q:0001065280-26-000212
Form 10-Q, period ended 31 March 2026	17 Apr 2026	10-Q:0001065280-26-000138
Form 10-K, period ended 31 December 2025	23 Jan 2026	10-K:0001065280-26-000034
Form 10-Q, period ended 30 September 2025	22 Oct 2025	10-Q:0001065280-25-000406
Form 10-Q, period ended 30 June 2025	18 Jul 2025	10-Q:0001065280-25-000323
Form 10-Q, period ended 31 March 2025	18 Apr 2025	10-Q:0001065280-25-000176
Form 10-K, period ended 31 December 2024	27 Jan 2025	10-K:0001065280-25-000044
Form 10-Q, period ended 30 September 2024	18 Oct 2024	10-Q:0001065280-24-000287
Form 10-Q, period ended 30 June 2024	19 Jul 2024	10-Q:0001065280-24-000200
Form 10-Q, period ended 31 March 2024	22 Apr 2024	10-Q:0001065280-24-000128
Form 10-K, period ended 31 December 2023	26 Jan 2024	10-K:0001065280-24-000030
Form 10-Q, period ended 30 September 2023	20 Oct 2023	10-Q:0001065280-23-000273
Form 10-Q, period ended 30 June 2023	21 Jul 2023	10-Q:0001065280-23-000198
Form 10-Q, period ended 31 March 2023	21 Apr 2023	10-Q:0001065280-23-000120
Form 10-K, period ended 31 December 2022	26 Jan 2023	10-K:0001065280-23-000035
Form 10-Q, period ended 30 September 2022	20 Oct 2022	10-Q:0001065280-22-000368
Form 10-Q, period ended 30 June 2022	21 Jul 2022	10-Q:0001065280-22-000257
Form 10-Q, period ended 31 March 2022	21 Apr 2022	10-Q:0001065280-22-000145
Form 10-K, period ended 31 December 2021	27 Jan 2022	10-K:0001065280-22-000036
Form 10-Q, period ended 30 September 2021	21 Oct 2021	10-Q:0001065280-21-000363
Form 10-Q, period ended 30 June 2021	22 Jul 2021	10-Q:0001065280-21-000250
Form 10-Q, period ended 31 March 2021	22 Apr 2021	10-Q:0001065280-21-000144
Form 10-K, period ended 31 December 2020	28 Jan 2021	10-K:0001065280-21-000040
Form 10-Q, period ended 30 September 2020	22 Oct 2020	10-Q:0001065280-20-000451
Form 10-Q, period ended 30 June 2020	20 Jul 2020	10-Q:0001065280-20-000309
Form 10-Q, period ended 31 March 2020	21 Apr 2020	10-Q:0001065280-20-000155

Checks

226225 of 226 checks passed, 1 warning

Fiscal calendar68 passedFiscal years last 350 to 380 days, quarters 80 to 125 days, and each period starts on the day after the one before. Checked at error level.

Quarters and fiscal year102 of 103 passedThe 4 quarters of every item add up to its fiscal year, or a later filing restated the year. Checked at error level; a difference that a later report explains is a warning, which does not stop publication.

Research and development expense, FY2020: $1,984m against $1,830m

Filer identity1 passedThe documents are those of the company of this page. Checked at error level.

Balance sheet identity26 passedTotal assets equal total liabilities and equity at each balance sheet date. Checked at error level.

Lease liabilities6 passedLease payments due, less imputed interest, equal the lease liabilities. Checked at warning level.

Quarters and 9 months15 passedThe 3 reported quarters of a fiscal year add up to the reported 9-month figure. Checked at error level.

Gross profit1 passedRevenue less cost of revenue equals reported gross profit. Checked at warning level.

Earnings per share6 passedNet income divided by average shares agrees with reported basic earnings per share. Checked at warning level.

Data Quality

How many values of this snapshot the checks prove, and how many Annalist derives, withholds and tracks as restated. Every company.

Values published	1,170
Proven by a check	48.1%, 563 values
Confirmed by a second document	0.0%, 0 values
Derived from reported figures	9.2%, 108 values
Values withheld	0
Restated figures tracked	19
Changes compared on one basis	3
Company lines mapped	0 of 1 reviewed

Citation

Annalist, Netflix, Inc., snapshot netflix/FY2026Q2_68e5077c (as of FY2026 Q2); <item label>, <period>; source <document id> (<document url>)

Snapshot FY2026Q2_68e5077c · dataset SHA-256 68e5077c10092157321415538a6877fa55af5b5ec406190ae5fb24f89f7f90a7 · findings rules 0.4

Data: info.json · dataset.json · validation.json · documents.json