Netflix $NFLX

Company profile

Netflix, Inc. describes itself in its Form 10-K for 2025 as 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. Its stated core strategy is to grow its business globally within the parameters of its operating margin target, and it offers a range of pricing plans, including an ad-supported subscription plan. As of December 31, 2025, prices on its paid plans ranged from the U.S. dollar equivalent of $1 to $37 per month.

Netflix operates as one operating segment, and its revenues are primarily derived from monthly membership fees. It also earns revenue from advertisements on its service, consumer products, live experiences and other sources, which the 10-K says were not a material component of revenues in 2023, 2024 or 2025. It reports revenue by region rather than by segment: United States and Canada (UCAN); Europe, Middle East, and Africa (EMEA); Latin America (LATAM); and Asia-Pacific (APAC). Total U.S. revenues were $18.5 billion in 2025, and currencies other than the U.S. dollar accounted for 56% of revenue. During 2025 Netflix discontinued reporting membership numbers, including average paying memberships and average monthly revenue per paying membership, focusing instead on revenue and operating margin.

Netflix was incorporated on August 29, 1997 and began operations on April 14, 1998. It is a Delaware corporation with principal executive offices at 121 Albright Way, Los Gatos, California, and its common stock trades on the NASDAQ Global Select Market under the symbol NFLX. It completed a ten-for-one forward stock split on November 14, 2025, and had approximately 16,000 full-time employees at the end of 2025. Ted Sarandos and Greg Peters are co-Chief Executive Officers and Spencer Neumann is Chief Financial Officer. Reed Hastings, Chairman when the 10-K was filed, did not stand for re-election at the June 4, 2026 annual meeting, and the board appointed Jay Hoag, its Lead Independent Director since 2012, as Chairman from the end of that meeting, according to two Form 8-K filings. Director Anne Sweeney resigned from the board on July 26, 2026, according to another Form 8-K.

On December 4, 2025, Netflix agreed to acquire the streaming and studios businesses of Warner Bros. Discovery, Inc. (WBD), including its film and television studios, HBO Max and HBO; under the agreement as amended on January 19, 2026, WBD stockholders were to receive $27.75 in cash per share, for a total equity value of approximately $72.0 billion and an enterprise value of approximately $82.7 billion as of December 4, 2025, according to the 10-K. On February 27, 2026, WBD terminated the agreement in order to enter into a merger agreement with Paramount Skydance Corporation, which paid Netflix the $2.8 billion termination fee on WBD's behalf, and Netflix's related bridge and credit commitments terminated automatically, according to a Form 8-K. Netflix recorded the fee in interest and other income (expense) in the first quarter of 2026.

According to its 10-Q for the second quarter of 2026 (unaudited), revenues for that quarter were $12,559,938 thousand, 13% higher than a year earlier, and revenues for the first six months of 2026 were $24,809,695 thousand. Net income for the six months was $8,684,205 thousand (unaudited), which includes the $2.8 billion termination fee. In March 2026 Netflix completed an acquisition, accounted for as a business combination, for a total purchase price of approximately $587 million in cash, and in the first half it made $729 million of non-routine payments related to non-income tax assessments in Brazil for prior tax periods. In July 2026 it issued $1 billion of 5.250% senior notes due 2036, intending to use the proceeds to repay its 4.375% senior notes due 2026 at maturity and for general corporate purposes. In its July 16, 2026 shareholder letter, furnished with a Form 8-K, Netflix narrowed its 2026 revenue forecast to $51.0 billion to $51.4 billion with an operating margin of 31.5%; these are company projections, not reported results.

Summary sources:^12345678

Revenue by fiscal year, as reported in 10-K

Products

Revenues

Content and Engagement

Product + Innovation

Segments and products

• One operating segment: Netflix operates as one operating segment. Its chief operating decision maker is its co-chief executive officers, who review financial information on a consolidated basis and use consolidated operating margin and net income to assess financial performance and allocate resources. The four regions below are how the 10-K breaks down streaming revenues; the filing does not call them segments.¹
• United States and Canada (UCAN), a region: Streaming revenues of $19,957,152 thousand in 2025, $17,359,369 thousand in 2024 and $14,873,783 thousand in 2023, as reported in the 10-K for 2025. Total U.S. revenues were $18.5 billion in 2025.¹
• Europe, Middle East, and Africa (EMEA), a region: Streaming revenues of $14,514,646 thousand in 2025, $12,387,035 thousand in 2024 and $10,556,487 thousand in 2023, as reported in the 10-K for 2025.¹
• Latin America (LATAM), a region: Streaming revenues of $5,357,521 thousand in 2025, $4,839,816 thousand in 2024 and $4,446,461 thousand in 2023, as reported in the 10-K for 2025. The 10-K's non-GAAP constant currency table shows LATAM revenue growth of 11% as reported and 23% in constant currency for 2025.¹
• Asia-Pacific (APAC), a region: Streaming revenues of $5,353,717 thousand in 2025, $4,414,746 thousand in 2024 and $3,763,727 thousand in 2023, as reported in the 10-K for 2025. Total streaming revenues across the four regions include hedging losses of $91 million in 2025 and hedging gains of $124 million in 2024.¹
• Paid memberships by region, end of 2024 (last reported): In its 10-K for 2024, the last annual report to give membership numbers, Netflix reported paid memberships at the end of 2024 of 89,625 thousand in UCAN, 101,133 thousand in EMEA, 53,327 thousand in LATAM and 57,541 thousand in APAC, for 301,626 thousand in total. A paid membership is one with the right to receive the service after sign-up with a method of payment, not part of a free trial or certain other promotions; extra member sub accounts are not counted.¹²
• Regions in the first half of 2026 (unaudited): For the six months ended June 30, 2026, revenues by region were UCAN $10,676,965 thousand, EMEA $8,031,934 thousand, LATAM $3,081,348 thousand and APAC $3,019,448 thousand, including hedging losses of $180 million in total. For the second quarter alone, UCAN revenues were $5,431,667 thousand, EMEA $4,033,515 thousand, LATAM $1,584,290 thousand and APAC $1,510,466 thousand. Total U.S. revenues were $9.9 billion for the six months.³

Risks

• Attracting and keeping members: Netflix says it must continually add new members both to replace canceled memberships and to grow, and that in countries where it has operated for many years or is highly penetrated, its membership growth is slower than in newer or less penetrated countries. Members cancel for reasons including a perception that they do not use the service enough, a need to cut household expenses, dissatisfaction with content or advertisements, and a preference for competing services. Because its content costs are largely fixed, it says slower-than-expected growth could hurt its margins, liquidity and results.¹
• Intense competition, including from piracy and generative AI: Netflix says the market for entertainment video is intensely competitive and subject to rapid change, with competitors that include broadcasters and cable network operators as well as internet-based providers, several with large content libraries and significant resources. It says new technological developments, including generative AI, are rapidly evolving and competitors could gain an advantage by using them more effectively, and that piracy threatens its business because its proposition to consumers, virtually all content for free, is so compelling.¹
• Access to licensed content: Netflix says its ability to offer content depends on obtaining rights from studios, content providers and other rights holders on acceptable terms, and that as content providers develop their own streaming services they may be unwilling to license certain content, including popular series or movies. Certain licenses allow content to be withdrawn relatively quickly, and it says the cost of certain programming increases as competition increases. It also negotiates with music collection management organizations, and failure to reach agreements could expose it to copyright claims or higher costs.¹
• Costs of producing original content: Netflix says it devotes significant resources to original programming and, as a producer, is responsible for production costs and expenses such as ongoing guild payments and takes on production risks such as completion and key talent risk. It says negotiations or renewals of entertainment industry collective bargaining agreements have affected, and could in the future affect, the timing and costs of its productions, and that if its programming does not meet expectations for cost, viewing and popularity, its brand and results could be harmed.¹
• Long-term, largely fixed content commitments: Netflix typically enters into multi-year commitments for licensed and produced content whose payment terms are not tied to member usage or the size of its membership base. It says it may be unable to reduce these obligations quickly if its cash flows fall, and that produced content requires more upfront cash. As of December 31, 2025, its content obligations totaled $24.0 billion, including $18.4 billion not yet reflected on the balance sheet, and it expects significant further obligations for unknown future titles that it believes could include approximately $1 billion to $4 billion over the next three years.¹
• Debt and other obligations: As of December 31, 2025, Netflix had the equivalent of $14.5 billion of senior notes outstanding, some denominated in currencies other than the U.S. dollar, an undrawn $3 billion revolving credit facility and approximately $5.7 billion of content liabilities on its balance sheet. It says its debt and other obligations may require a substantial portion of its operating cash flow, limit its ability to borrow and its flexibility, and that refinancing could come at higher interest rates or with more onerous covenants if financial markets become difficult or costly to access.¹
• A young advertising business: Netflix says it has limited experience and operating history offering advertising, and its advertising revenue may not grow as it expects. It lists factors including its ability to attract and retain advertisers, membership plan mix and engagement, competition for advertising spend, shifts in advertising spend including from macroeconomic conditions, the availability and accuracy of measurement tools, privacy rules on ad targeting and measurement, its reliance on third-party advertising service providers, and member dissatisfaction with advertisements.¹
• Reliance on Amazon Web Services: Netflix says it runs the vast majority of its computing on Amazon Web Services and cannot easily switch to another cloud provider, so any commercial dispute with, disruption of or interference with its use of AWS would affect its operations. It notes that Amazon's retail business competes with it, though it does not believe Amazon will use AWS to gain a competitive advantage.¹
• International operations and currency: Netflix says its international operations expose it to risks including political or social unrest, complying with local laws and regulations, censorship requirements, adverse tax consequences, restrictions on transferring funds and trade disputes, as well as fluctuations in currency exchange rates that its hedging may not fully offset. Currencies other than the U.S. dollar accounted for 56% of its revenue and 31% of its operating expenses in 2025, mainly the euro, British pound, Brazilian real, Mexican peso, Canadian dollar and Argentine peso.¹
• Tax disputes in Brazil and elsewhere: Netflix says it is subject to tax in multiple jurisdictions and that some tax authorities are challenging its positions. In Brazil it is involved in a number of non-income tax matters; during 2025 developments in another taxpayer's court case led it to conclude that a loss on its most significant Brazilian matter is probable, and it recognized a cumulative loss of approximately $619 million as an operating expense in the third quarter of 2025. It says the final outcomes may be materially different from its expectations. The 10-K describes the matter as of its filing on January 23, 2026.¹

Frequently asked questions

What does Netflix do?

Netflix runs a subscription entertainment service offering TV series, films, games and live programming across many genres and languages, according to its Form 10-K for 2025. It earns its revenues primarily from monthly membership fees, with a range of plans that includes an ad-supported plan, and it also earns revenue from advertising, consumer products and live experiences.

What was Netflix's revenue in 2025?

Netflix reported revenues of $45,183,036 thousand (about $45.2 billion) for 2025, the year ended December 31, 2025, in its Form 10-K filed on January 23, 2026. Operating income was $13,326,603 thousand, an operating margin of 29.5%, and net income was $10,981,201 thousand.

How much revenue does Netflix make in each region?

In 2025, according to its 10-K, streaming revenues were $19,957,152 thousand in the United States and Canada (UCAN), $14,514,646 thousand in Europe, Middle East, and Africa (EMEA), $5,357,521 thousand in Latin America (LATAM) and $5,353,717 thousand in Asia-Pacific (APAC). Netflix reports these as regions within a single operating segment. In the first six months of 2026 (unaudited), the figures were $10,676,965 thousand, $8,031,934 thousand, $3,081,348 thousand and $3,019,448 thousand.

How many subscribers does Netflix have?

Netflix stopped reporting membership numbers during 2025. Its last 10-K figure is 301,626 thousand (about 301.6 million) paid memberships at the end of 2024, according to its 10-K for that year. In its January 20, 2026 shareholder letter, furnished with a Form 8-K, Netflix said it crossed 325 million paid memberships during the fourth quarter of 2025; that is a company statement, not a figure from its 10-K or 10-Q filings.

What happened to Netflix's deal to buy Warner Bros.?

Netflix agreed on December 4, 2025 to acquire Warner Bros. Discovery's streaming and studios businesses, including HBO Max and HBO. On February 27, 2026, WBD terminated the agreement to sign a merger agreement with Paramount Skydance Corporation, which paid Netflix a $2.8 billion termination fee on WBD's behalf, according to a Form 8-K. Netflix had told WBD the day before that it would not seek to revise the agreement, and its financing commitments for the deal terminated.

What does Netflix expect for 2026?

In its July 16, 2026 shareholder letter, furnished with a Form 8-K, Netflix narrowed its 2026 revenue forecast to $51.0 billion to $51.4 billion, continued to forecast an operating margin of 31.5%, and said it remains on track for approximately $3 billion of advertising revenue and expects free cash flow of approximately $12.5 billion. These are company projections, not reported results.

How big is Netflix's advertising business?

Netflix's 10-K for 2025 says revenue from sources other than membership fees, including advertising, was not a material component of revenues. In its January 20, 2026 shareholder letter, Netflix said its 2025 advertising revenue was over $1.5 billion, and in its July 16, 2026 letter it said it expects approximately $3 billion in 2026, a company projection.

Who runs Netflix?

Ted Sarandos and Greg Peters are co-Chief Executive Officers, according to Netflix's 10-Q for the second quarter of 2026, and Spencer Neumann signed its July 22, 2026 Form 8-K as Chief Financial Officer. Reed Hastings did not stand for re-election as a director at the June 4, 2026 annual meeting, and Jay Hoag became Chairman of the Board from the end of that meeting, where stockholders elected twelve directors, according to Form 8-K filings. Director Anne Sweeney resigned from the board on July 26, 2026, according to a Form 8-K.

Does Netflix pay a dividend or buy back stock?

Netflix has never declared or paid cash dividends and does not currently expect to in the foreseeable future, according to its 10-K for 2025. It repurchased 86,536,215 shares for $9.1 billion in 2025, and 66,431,786 shares for $5.9 billion in the first six months of 2026 (unaudited). In April 2026 its board authorized an additional $25 billion of repurchases, according to a Form 8-K, and $27.1 billion remained available as of June 30, 2026 (unaudited).

Did Netflix split its stock?

Yes. Netflix completed a ten-for-one forward stock split on November 14, 2025: each shareholder of record on November 10, 2025 received nine additional shares for every share held. Its 10-K for 2025 restates share and per-share amounts to reflect the split.

Where is Netflix headquartered?

In Los Gatos, California, according to its Form 10-K for 2025. Its principal executive offices are at 121 Albright Way, and it also leases principal properties in Los Angeles.

Sources

1. Netflix, Inc. (SEC filing), Netflix, Inc. Form 10-K for the fiscal year ended December 31, 2025, Jan 23, 2026
2. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Item 1.02: termination of the merger agreement with Warner Bros. Discovery, Inc. and related financing commitments (event date February 27, 2026), Feb 27, 2026
3. Netflix, Inc. (SEC filing), Netflix, Inc. Form 10-Q for the quarterly period ended June 30, 2026 (unaudited), Jul 17, 2026
4. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Item 5.02: Reed Hastings decides not to stand for re-election as a director (event date April 10, 2026), Apr 16, 2026
5. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Items 5.07 and 8.01: results of the 2026 annual meeting of stockholders and appointment of Jay Hoag as Chairman (event date June 4, 2026), Jun 5, 2026
6. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Item 8.01: completion of a $1 billion offering of 5.250% senior notes due 2036 (event date July 22, 2026), Jul 22, 2026
7. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Item 5.02: resignation of director Anne Sweeney (event date July 26, 2026), Jul 30, 2026
8. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Exhibit 99.1: letter to shareholders dated July 16, 2026, with second-quarter 2026 results and 2026 forecast, Jul 16, 2026
9. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Exhibit 99.1: letter to shareholders dated January 20, 2026, with fourth-quarter 2025 results and 2026 forecast, Jan 20, 2026
10. Netflix, Inc. (SEC filing), Netflix, Inc. Form 10-K for the fiscal year ended December 31, 2022, Jan 26, 2023
11. Netflix, Inc. (SEC filing), Netflix, Inc. Form 10-K for the fiscal year ended December 31, 2023, Jan 26, 2024
12. Netflix, Inc. (SEC filing), Netflix, Inc. Form 10-K for the fiscal year ended December 31, 2024, Jan 27, 2025
13. Netflix, Inc. (SEC filing), Netflix, Inc. Form 8-K, Item 8.01: board authorizes the repurchase of an additional $25 billion of common stock (event date April 22, 2026), Apr 23, 2026
14. Netflix, Inc. (About Netflix), Introducing Exciting New Ways to Find and Enjoy Your Next Favorite on Mobile, Aug 25, 2026

Figures last checked against the sources above on Oct 11, 2026. General information, not investment advice.