Revenue growth accelerated to 16.2% in 2026Q1, while gross margins expanded to 51.9% from 39.9% in 2023Q4, reflecting improved operational scale.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 46.89B | 45.18B | 39B | 33.72B | 31.62B | 29.7B | 25B | 20.16B | 15.79B | 11.69B | 8.83B | 6.78B | 5.5B | 4.37B | 3.61B | 3.2B | 2.16B | 1.67B | 1.36B | 1.21B | 996.66M | 682.21M | 506.23M | 272.24M | 152.81M | 75.91M |
| Revenue Growth % | 16.72% | 15.85% | 15.65% | 6.67% | 6.46% | 18.81% | 24.01% | 27.62% | 35.08% | 32.41% | 30.26% | 23.16% | 25.83% | 21.2% | 12.63% | 48.18% | 29.48% | 22.39% | 13.22% | 20.94% | 46.09% | 34.76% | 85.95% | 78.16% | 101.29% | - |
| Cost of Goods Sold | 23.9B | 23.28B | 21.04B | 19.72B | 19.17B | 17.33B | 15.28B | 12.44B | 9.97B | 7.66B | 6.03B | 4.59B | 3.75B | 3.08B | 2.63B | 2.04B | 1.36B | 1.08B | 910.23M | 786.17M | 626.99M | 464.55M | 276.46M | 148.36M | 78.14M | 49.91M |
| COGS % of Revenue | - | 51.51% | 53.94% | 58.46% | 60.63% | 58.36% | 61.11% | 61.72% | 63.11% | 65.51% | 68.28% | 67.73% | 68.17% | 70.48% | 72.75% | 63.66% | 62.76% | 64.62% | 66.7% | 65.22% | 62.91% | 68.09% | 54.61% | 54.5% | 51.13% | 65.74% |
| Gross Profit | 22.99B | 21.91B | 17.96B | 14.01B | 12.45B | 12.37B | 9.72B | 7.72B | 5.83B | 4.03B | 2.8B | 2.19B | 1.75B | 1.29B | 983.42M | 1.16B | 805.27M | 591M | 454.43M | 419.17M | 369.68M | 217.66M | 229.77M | 123.88M | 74.67M | 26M |
| Gross Margin % | 49.03% | 48.49% | 46.06% | 41.54% | 39.37% | 41.64% | 38.89% | 38.28% | 36.89% | 34.49% | 31.72% | 32.27% | 31.83% | 29.52% | 27.25% | 36.34% | 37.24% | 35.38% | 33.3% | 34.78% | 37.09% | 31.91% | 45.39% | 45.5% | 48.87% | 34.26% |
| Gross Profit Growth % | - | 21.96% | 28.23% | 12.54% | 0.66% | 27.22% | 25.96% | 32.43% | 44.48% | 44% | 28% | 24.9% | 35.67% | 31.31% | -15.56% | 44.63% | 36.26% | 30.05% | 8.41% | 13.39% | 69.84% | -5.27% | 85.47% | 65.91% | 187.14% | - |
| Operating Expenses | 9.05B | 8.58B | 7.54B | 7.05B | 6.81B | 6.17B | 5.13B | 5.11B | 4.22B | 3.19B | 2.42B | 1.88B | 1.35B | 1.06B | 933.42M | 779.61M | 527.72M | 399.06M | 332.92M | 328.01M | 310.06M | 208.57M | 210.42M | 119.41M | 85.34M | 62.56M |
| OpEx % of Revenue | - | 18.99% | 19.35% | 20.92% | 21.55% | 20.78% | 20.54% | 25.36% | 26.73% | 27.32% | 27.42% | 27.76% | 24.51% | 24.3% | 25.86% | 24.33% | 24.4% | 23.89% | 24.4% | 27.21% | 31.11% | 30.57% | 41.57% | 43.86% | 55.85% | 82.41% |
| Selling, General & Admin | 5.52B | 5.19B | 4.62B | 4.38B | 4.1B | 3.9B | 3.3B | 3.57B | 3B | 2.14B | 1.57B | 1.23B | 876.93M | 684.19M | 604.42M | 520.58M | 364.39M | 289.08M | 249.38M | 270.81M | 261.68M | 180.05M | 114.31M | 101.53M | 70.72M | 44.83M |
| SG&A % of Revenue | - | 11.49% | 11.84% | 12.98% | 12.98% | 13.12% | 13.22% | 17.7% | 18.99% | 18.32% | 17.77% | 18.16% | 15.93% | 15.64% | 16.75% | 16.24% | 16.85% | 17.31% | 18.27% | 22.47% | 26.26% | 26.39% | 22.58% | 37.29% | 46.28% | 59.05% |
| Research & Development | 3.53B | 3.39B | 2.93B | 2.68B | 2.71B | 2.27B | 1.83B | 1.55B | 1.22B | 1.05B | 852.1M | 650.79M | 472.32M | 378.77M | 329.01M | 259.03M | 163.33M | 114.54M | 89.87M | 71.39M | 48.38M | 30.94M | 22.91M | 17.88M | 14.63M | 17.73M |
| R&D % of Revenue | - | 7.51% | 7.5% | 7.93% | 8.58% | 7.66% | 7.32% | 7.67% | 7.74% | 9% | 9.65% | 9.6% | 8.58% | 8.66% | 9.12% | 8.08% | 7.55% | 6.86% | 6.59% | 5.92% | 4.85% | 4.54% | 4.52% | 6.57% | 9.57% | 23.36% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -4.56M | -6.33M | -14.2M | 0 | -2.42M | 5.76M | 0 | 0 | 0 |
| Operating Income | 13.94B | 13.33B | 10.42B | 6.95B | 5.63B | 6.19B | 4.59B | 2.6B | 1.61B | 838.68M | 379.79M | 305.83M | 402.65M | 228.35M | 49.99M | 376.07M | 283.64M | 191.94M | 121.51M | 91.16M | 64.41M | 2.99M | 19.35M | 4.47M | -11.67M | -37.23M |
| Operating Margin % | 29.72% | 29.49% | 26.71% | 20.62% | 17.82% | 20.86% | 18.34% | 12.92% | 10.16% | 7.17% | 4.3% | 4.51% | 7.31% | 5.22% | 1.39% | 11.74% | 13.12% | 11.49% | 8.9% | 7.56% | 6.46% | 0.44% | 3.82% | 1.64% | -7.64% | -49.04% |
| Operating Income Growth % | - | 27.92% | 49.81% | 23.45% | -9.07% | 35.1% | 76.07% | 62.24% | 91.4% | 120.83% | 24.19% | -24.05% | 76.33% | 356.77% | -86.71% | 32.59% | 47.78% | 57.97% | 33.29% | 41.52% | 2055.04% | -84.56% | 332.78% | 138.31% | 68.65% | - |
| EBITDA | 31.11B | 30.08B | 26.05B | 21.51B | 20B | 18.63B | 15.51B | 11.92B | 9.22B | 7.11B | 5.3B | 3.85B | 3.18B | 2.47B | 1.75B | 1.22B | 622.34M | 229.98M | 363.72M | 316.15M | 221.55M | 109.99M | 107.56M | 55.46M | 14.8M | -7.43M |
| EBITDA Margin % | 66.34% | 66.58% | 66.79% | 63.78% | 63.25% | 62.74% | 62.04% | 59.16% | 58.38% | 60.79% | 60.07% | 56.83% | 57.85% | 56.46% | 48.54% | 37.94% | 28.78% | 13.77% | 26.65% | 26.23% | 22.23% | 16.12% | 21.25% | 20.37% | 9.69% | -9.79% |
| EBITDA Growth % | 15.6% | 15.49% | 21.11% | 7.57% | 7.31% | 20.15% | 30.06% | 29.32% | 29.71% | 34% | 37.68% | 20.99% | 28.92% | 40.98% | 44.12% | 95.34% | 170.6% | -36.77% | 15.05% | 42.7% | 101.43% | 2.26% | 93.93% | 274.62% | 299.26% | - |
| D&A (Non-Cash Add-back) | 17.17B | 16.76B | 15.63B | 14.55B | 14.36B | 12.44B | 10.92B | 9.32B | 7.62B | 6.27B | 4.92B | 3.55B | 2.78B | 2.24B | 1.7B | 839.62M | 338.69M | 38.04M | 242.21M | 224.99M | 157.14M | 107M | 88.2M | 50.99M | 26.48M | 29.8M |
| EBIT | 16.91B | 13.5B | 10.68B | 6.95B | 5.97B | 6.61B | 4.59B | 2.69B | 1.65B | 838.68M | 410.62M | 305.83M | 402.65M | 203.22M | 50.47M | 379.55M | 287.32M | 198.67M | 133.96M | 91.16M | 64.41M | 2.99M | 19.35M | 4.47M | -10.67M | -37.12M |
| Net Interest Income | 2.12B | -604.05M | -451.96M | -748.6M | -368.9M | -354.41M | -1.39B | -542.02M | -378.77M | -353.36M | -119.29M | -163.94M | -53.28M | -32.14M | -19.51M | -16.55M | -15.95M | 253K | 9.99M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.97B | 172.46M | 266.78M | 0 | 337.31M | 411.21M | 0 | 84M | 41.73M | 0 | 30.83M | 0 | 0 | 0 | 474K | 3.48M | 3.68M | 6.73M | 12.45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 854.41M | 776.51M | 718.73M | 748.6M | 706.21M | 765.62M | 1.39B | 626.02M | 420.49M | 353.36M | 150.11M | 163.94M | 53.28M | 32.14M | 19.99M | 20.02M | 19.63M | 6.47M | 2.46M | 20.34M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.12B | -604.05M | -451.96M | -748.6M | -368.9M | -354.41M | -1.39B | -542.02M | -378.77M | -353.36M | -119.29M | -163.94M | -53.28M | -57.27M | -19.51M | -16.55M | -15.95M | 253K | 9.99M | 20.34M | 15.9M | 5.35M | 2.42M | 2.04M | -11.27M | -671K |
| Pretax Income | 16.06B | 12.72B | 9.97B | 6.21B | 5.26B | 5.84B | 3.2B | 2.06B | 1.23B | 485.32M | 260.51M | 141.88M | 349.37M | 171.07M | 30.48M | 359.52M | 267.7M | 192.19M | 131.5M | 111.5M | 80.32M | 8.34M | 21.78M | 6.51M | -21.95M | -37.9M |
| Pretax Margin % | 34.24% | 28.16% | 25.55% | 18.4% | 16.65% | 19.67% | 12.8% | 10.23% | 7.77% | 4.15% | 2.95% | 2.09% | 6.35% | 3.91% | 0.84% | 11.22% | 12.38% | 11.51% | 9.64% | 9.25% | 8.06% | 1.22% | 4.3% | 2.39% | -14.36% | -49.92% |
| Income Tax | 2.68B | 1.74B | 1.25B | 797.41M | 772M | 723.88M | 437.95M | 195.31M | 15.22M | -73.61M | 73.83M | 19.24M | 82.57M | 58.67M | 13.33M | 133.4M | 106.84M | 76.33M | 48.47M | 44.55M | 31.24M | -33.69M | 181K | 0 | -69.39M | 2.06M |
| Effective Tax Rate % | 16.71% | 13.69% | 12.58% | 12.85% | 14.67% | 12.39% | 13.69% | 9.47% | 1.24% | -15.17% | 28.34% | 13.56% | 23.63% | 34.3% | 43.73% | 37.1% | 39.91% | 39.72% | 36.86% | 39.95% | 38.89% | -404.22% | 0.83% | 0% | 316.18% | -5.44% |
| Net Income | 13.37B | 10.98B | 8.71B | 5.41B | 4.49B | 5.12B | 2.76B | 1.87B | 1.21B | 558.93M | 186.68M | 122.64M | 266.8M | 112.4M | 17.15M | 226.13M | 160.85M | 115.86M | 83.03M | 66.95M | 49.08M | 42.03M | 21.59M | 6.51M | -21.95M | -38.62M |
| Net Margin % | 28.52% | 24.3% | 22.34% | 16.04% | 14.21% | 17.23% | 11.05% | 9.26% | 7.67% | 4.78% | 2.11% | 1.81% | 4.85% | 2.57% | 0.48% | 7.06% | 7.44% | 6.94% | 6.08% | 5.55% | 4.92% | 6.16% | 4.27% | 2.39% | -14.36% | -50.87% |
| Net Income Growth % | 44.27% | 26.05% | 61.09% | 20.39% | -12.2% | 85.28% | 47.91% | 54.13% | 116.71% | 199.41% | 52.22% | -54.03% | 137.36% | 555.33% | -92.41% | 40.58% | 38.83% | 39.55% | 24.01% | 36.41% | 16.79% | 94.61% | 231.62% | 129.67% | 43.17% | - |
| Net Income (Continuing) | 13.37B | 10.98B | 8.71B | 5.41B | 4.49B | 5.12B | 2.76B | 1.87B | 1.21B | 558.93M | 186.68M | 122.64M | 266.8M | 112.4M | 17.15M | 226.13M | 160.85M | 115.86M | 83.03M | 66.95M | 49.08M | 42.03M | 21.59M | 6.51M | -20.95M | -39.18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.11 | 2.53 | 1.98 | 1.20 | 1.00 | 1.12 | 0.61 | 0.41 | 0.27 | 0.13 | 0.04 | 0.03 | 0.06 | 0.03 | 0.00 | 0.06 | 0.04 | 0.03 | 0.02 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | -0.01 | -0.04 |
| EPS Growth % | 46.23% | 27.78% | 65% | 20% | -10.71% | 83.61% | 47.7% | 54.1% | 114.4% | 190.7% | 53.57% | -54.84% | 138.46% | - | -93.18% | 45.24% | 50% | 47.37% | 35.71% | 40% | - | - | - | - | 85.37% | - |
| EPS (Basic) | - | 2.58 | 2.03 | 1.23 | 1.01 | 1.16 | 0.63 | 0.43 | 0.28 | 0.13 | 0.04 | 0.03 | 0.06 | 0.03 | 0.00 | 0.06 | 0.04 | 0.03 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.00 | -0.01 | -0.04 |
| Diluted Shares Outstanding | 4.3B | 4.32B | 4.39B | 4.49B | 4.51B | 4.55B | 4.54B | 4.52B | 4.51B | 4.47B | 4.39B | 4.36B | 4.32B | 4.25B | 4.12B | 3.81B | 3.8B | 4.09B | 4.4B | 4.82B | 4.84B | 4.59B | 4.53B | 8.8B | 3.95B | 1.02B |
| Basic Shares Outstanding | 4.22B | 4.23B | 4.3B | 4.42B | 4.45B | 4.43B | 4.41B | 4.38B | 4.35B | 4.32B | 4.29B | 4.26B | 4.21B | 4.07B | 3.89B | 3.7B | 3.68B | 3.96B | 4.27B | 4.7B | 4.38B | 3.75B | 3.64B | 6.69B | 3.95B | 1.02B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Content cost inflation volatility
As reported in recent financial statements, Netflix achieved a 16.2% year-over-year revenue growth in 2026Q1, signaling that the company's strategic pivot toward monetization of password sharing and ad-supported tiers is successfully driving top-line expansion despite the maturation of core streaming markets in North America.
The consistent acceleration in revenue growth suggests that the company is effectively transitioning from a pure subscriber-acquisition model to one focused on maximizing average revenue per member. This trend appears durable as the platform leverages its global scale to offset regional saturation through diversified pricing strategies.
According to the latest quarterly data, gross margins reached 51.9% in 2026Q1, reflecting a significant improvement from the 39.9% reported in 2023Q4, which suggests that the company is successfully amortizing its massive content library across a larger, more efficiently monetized global subscriber base.
The expansion in gross margins indicates that the company's content-heavy cost structure is becoming increasingly decoupled from incremental subscriber additions. This suggests that the 'global-local' content flywheel is generating superior returns on invested capital compared to legacy media peers who remain burdened by linear asset decay.
Based on reported figures, operating income scaled to $4.0 billion in 2026Q1, representing a 32.3% operating margin that demonstrates the company's ability to maintain disciplined overhead growth while simultaneously increasing its investment in high-impact content and new revenue-generating initiatives like live events.
The divergence between revenue growth and SG&A spending suggests that the company has achieved a critical inflection point in operating leverage. Investors should monitor whether this efficiency persists as the company expands into more complex, time-sensitive content categories that may require higher operational overhead.
As indicated by the 2026Q1 net income of $5.3 billion, the company's bottom-line performance appears increasingly robust, with stock-based compensation remaining a relatively small fraction of total expenses, suggesting that reported earnings are not being significantly diluted by aggressive equity-based incentive programs.
The sharp increase in net income relative to historical periods suggests that the company is moving past its most capital-intensive investment phase. However, the volatility in quarterly net margins warrants further investigation into the timing of content amortization and potential non-operating items that may influence reported results.
While current margins appear strong, a critical challenge remains the potential for content cost inflation, as evidenced by the $5.9 billion COGS reported in 2026Q1, which may threaten profitability if the company's pricing power fails to keep pace with rising global production and talent costs.
Short-term margin compression could occur if the company is forced to increase content spend to defend its market share against well-capitalized tech entrants. The reliance on high-budget, live-event content may introduce new cyclicality into the income statement that has not been present in the traditional subscription model.
Quick answers to the most common questions about buying NFLX stock.
For fiscal year 2025, Netflix, Inc. (NFLX) reported total revenue of $45.18B. This represents a 59420.3% increase compared to $75.9M in 2001.
Netflix, Inc. (NFLX) is profitable, generating $10.98B in net income for the fiscal year ending 2025 with a net profit margin of 24.3%.
Netflix, Inc. (NFLX) reported an operating income of $13.33B, resulting in an operating profit margin of 29.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Netflix, Inc. (NFLX) generated $21.91B in gross profit for the year, representing a gross profit margin of 48.5%. This demonstrates the company's core pricing power and production efficiency.