NFLX NETFLIX INC

Overview and Growth

In fiscal 2025, NETFLIX INC recorded $45.18B of revenue, net income of $10.98B, and an operating cash inflow of $10.15B. Revenue of $45.18B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 15.9% above fiscal 2024 revenue of $39.00B, marking a year-over-year increase. On a per-share basis, diluted EPS was $2.53, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $1.98 in fiscal 2024, the current result was 27.8% higher. The revenue-to-assets relationship was 0.81x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $21.91B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. The gross-profit relationship equaled 48.5% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $13.33B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 29.5%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $10.98B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 24.3%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $12.72B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 28.2%, adding a pre-tax profitability layer between revenue and net income. The company recognized $1.74B of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 13.7% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $55.60B asset base was financed through $28.98B of liabilities and $26.62B of equity. The near-term balance sheet paired $13.02B of current assets with $10.98B of current liabilities at the reporting date. At 1.19x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $9.03B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 82.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $14.46B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.54x of book equity, describing the relative scale of borrowing and shareholder capital. The debt-to-assets relationship was 26.0%, comparing borrowing with the total asset balance. Liabilities represented 52.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 16.2% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $10.15B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 0.92x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $688.22M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 6.8% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $9.46B of positive free cash flow for the period. Relative to revenue, free cash flow equaled 20.9%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 17.0%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.