Netflix (NFLX) closed at $82.18 on June 7, 2026, near the low end of a 52-week range of $75.01–$134.12, with a market capitalization of $346.0B. The FY2025 10-K filed January 23, 2026 reported revenue of $45.18B (up 15.9% year-over-year), operating income of $13.33B (29.5% margin), and diluted EPS of $2.53. Free cash flow reached $7.63B against capital expenditure of less than 2% of sales. The trailing P/E sits near 31.8x at the current quote, compressed from 43.9x at the FY2024 close, raising the question of whether multiple compression has run ahead of fundamentals.

Company Snapshot

Netflix, Inc. (NASDAQ: NFLX), headquartered in Los Gatos, California and led by co-CEO Theodore A. Sarandos, operates within the Communication Services sector under the Entertainment industry. The company licenses and produces television series, documentaries, feature films, and mobile games, distributed via streaming to internet-connected devices across 190 countries. According to the company’s most recent disclosures, the paid membership base stands at approximately 222 million accounts, with a residual DVD-by-mail legacy product in the United States that contributes immaterially to consolidated revenue.

Revenue mix remains dominated by subscription streaming, with the advertising tier introduced in late 2022 contributing a growing but still secondary share of total sales. Geographic exposure spans four reported segments: United States and Canada (UCAN), Europe, Middle East, and Africa (EMEA), Latin America (LATAM), and Asia-Pacific (APAC). EMEA and APAC have absorbed the bulk of net adds since the 2023 paid-sharing crackdown began monetizing borrowed-password households. The company employs approximately 14,000 full-time staff and reports in U.S. dollars, with foreign-currency translation a recurring sensitivity in quarterly results.

Beta of 1.49 reflects the equity’s historical amplification of broad market moves, and average daily volume of 38.3 million shares supports institutional liquidity. Netflix has paid no dividend; capital return runs through buybacks, with the FY2025 weighted-average diluted share count of 4.32 billion down from 4.49 billion in FY2023.

Recent Financial Performance

The three-year revenue trajectory shows an acceleration. FY2023 revenue of $33.72B grew to $39.00B in FY2024 (up 15.7%) and $45.18B in FY2025 (up 15.9%). Gross profit expanded from $14.01B to $21.91B across the same period, with gross margin widening from 41.5% in FY2023 to 48.5% in FY2025. Operating income nearly doubled, rising from $6.95B in FY2023 to $13.33B in FY2025, lifting the operating margin from 20.6% to 29.5%.

Net income climbed from $5.41B to $10.98B over two years, and diluted EPS advanced from $1.20 to $2.53, a 110.8% increase. The net margin reached 24.3% in FY2025, up from 22.3% in FY2024 and 16.0% in FY2023. According to data drawn from the FY2025 10-K, EBITDA of $30.25B yielded an EBITDA margin of 67.0%, though investors should recognize the heavy content amortization base ($16.76B in FY2025) that flows through cost of revenue and depresses GAAP EBIT relative to that headline figure.

Cash generation has strengthened materially. Operating cash flow per share reached $2.40 in FY2025 versus $1.71 in FY2024, and free cash flow per share rose to $2.24 from $1.61. The cash conversion of net income (operating cash flow ÷ net income) registered 0.92, with the gap between accrual earnings and cash earnings narrowing as content investment cycles mature. Capital expenditure remains de minimis at 1.52% of revenue, since content spend is capitalized into the content asset on the balance sheet rather than running through PP&E capex lines.

Interest coverage stands at 17.2x EBIT for FY2025, up from 14.5x in FY2024. Net debt to EBITDA fell to 0.18x from 0.39x, reflecting both EBITDA growth and net debt paydown. The effective tax rate of 13.7% in FY2025 is below the U.S. statutory rate, partly a function of foreign-derived intangible income treatment that investors should monitor as global minimum tax frameworks (Pillar Two) phase in.