Netflix, Inc.
Streaming entertainmentFounded 1997- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
Netflix, Inc.
Financial Performance
Last reviewed: June 2026 · By Swet Parvadiya
Revenue
$45.2B
Market Cap
$370.0B
Net Income
$11.0B
Employees
14,000
Free cash flow of $5.09 billion in Q1 2026 alone — up 91% year-over-year — is the number that most clearly marks Netflix's financial maturation. The company spent years burning cash to build its content library and global distribution infrastructure. The content amortization schedule that once appeared as a perpetual drag on cash flow has stabilized, and the subscriber base has grown large enough that incremental content spend generates returns at scale rather than subsidizing growth from a thin base. Revenue grew from $31.6 billion in FY2022 to $45.2 billion in FY2025, a compound growth rate that is remarkable for a company of this size. Net income of $11 billion represents a net margin of approximately 24%, placing Netflix among the most profitable media companies ever measured. The operating leverage comes from the nature of digital distribution: a $200 million series costs the same whether it is watched by 50 million households or 300 million households. The marginal cost of one additional viewer is approximately zero. The advertising revenue expansion changes the financial architecture in a significant way. Subscription revenue is ceiling-constrained by willingness to pay. Advertising revenue scales with engagement intensity — the more hours members spend watching, the more advertising inventory Netflix can sell. With 4,000+ advertisers and 60% of new sign-ups choosing the advertising-supported tier in markets where it is available, the advertising business is growing faster than the subscription business and at a structurally different revenue profile. The content cost spiral — roughly $17 billion in annual cash content spend — is the persistent structural challenge. Netflix must produce enough compelling original content to prevent churn among 325 million paid households, each of which has an alternative streaming service available at a click. The 14,000-employee headcount against $45 billion in revenue reflects how efficiently the business runs: most of the cost is content, not people.
Revenue Trend Analysis
YoY Change
+15.9%
6-Year CAGR
+14.4%
Peak Year
2025
Trend
Consistent Growth
Netflix, Inc. has reported revenue across 7 fiscal years, compounding at +14.4% annually over 6 years. The most recent year saw a 15.9% increase versus the prior year. Revenue peaked in 2025 at $45.2B. Out of 6 reported periods, 6 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $45.2B | $11.0B | +15.9% |
| FY2024 | $39.0B | $8.7B | +15.7% |
| FY2023 | $33.7B | $5.4B | +6.7% |
| FY2022 | $31.6B | $4.5B | +6.5% |
| FY2021 | $29.7B | $5.1B | +18.8% |
| FY2020 | $25.0B | $2.8B | +24.0% |
| FY2019 | $20.2B | $1.9B | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Netflix, Inc. SEC CIK is 0001065280.
Netflix company facts can be retrieved from the SEC companyfacts API using CIK 0001065280.
Netflix generated about $45.2B in annual revenue in the latest reported year in this dataset.
Netflix's revenue grew from $25.0 billion in 2020 to $29.7 billion in 2021, $31.6 billion in 2022, $33.7 billion in 2023, $39.0 billion in 2024, and is tracking to approximately $45.2 billion in FY2025. Operating margin expanded sharply across the period from 18.3% in 2020 to 20.9% in 2021, then compressed to 17.8% in 2022 amid the subscriber decline and pricing reset, before expanding to 20.6% in 2023, 26.7% in 2024, and trending toward 30%+ in 2025 guidance. The margin expansion reflected three forces: continued price increases in the US and other mature markets; the maturation of original-content amortization curves so that content costs as a percentage of revenue declined; and the disciplined approach to content spend after the 2018-2020 buildout. Net income trajectory tracked operating margin: $2.8 billion in 2020, $5.1 billion in 2021, $4.5 billion in 2022, $5.4 billion in 2023, $8.7 billion in 2024, and trending higher. Free cash flow turned dramatically: from negative $3.3 billion in 2019, near breakeven in 2020-2021 on COVID production pauses, to positive $1.6 billion in 2022, $6.9 billion in 2023, $7.5 billion in 2024, and double-digit-billions trending in 2025.
Netflix's market capitalization has had three distinct phases. The first phase from 2002 IPO at roughly $300 million to 2017 reached approximately $80 billion at the end of 2017, driven by subscriber growth and global expansion. The second phase saw the cap peak around $300 billion in October-November 2021 amid pandemic-era streaming demand and ZIRP-driven multiple expansion, before collapsing to roughly $80 billion in May 2022 after the first reported subscriber decline triggered re-pricing of growth assumptions. The third phase has been the recovery and breakout: by late 2024 the market cap had crossed $300 billion, and through 2025 reached approximately $370 billion — surpassing the 2021 peak in absolute terms. The recovery has been driven by free-cash-flow inflection (from $1.6 billion in 2022 to $7+ billion in 2024-2025), the success of the ad tier and password-sharing initiatives, the absence of meaningful subscriber-growth deceleration despite the price increases, and improving operating margin trajectory. Forward P/E multiples have ranged from the low 20s during pessimism to the high 40s during optimism, currently sitting in the high 30s. Netflix is the only pure-play streaming subscription company at scale; the comparison set spans Disney, Warner Bros Discovery, Comcast (Peacock), Paramount, and Amazon's Prime Video segment.
Netflix capitalizes the cost of producing or licensing content as an intangible asset on the balance sheet, with the asset amortized through cost of revenues over the estimated viewing-life curve of each title. The total content-asset carrying value reached approximately $32 billion at recent reporting dates, with the asset reported in two buckets: licensed content (approximately one-third) and produced content (approximately two-thirds), reflecting the strategic shift toward original productions. Amortization curves are accelerated, with most of a title's amortization typically front-loaded in the first 24 months of availability based on viewing-data analysis. Annual content amortization runs approximately $14-15 billion versus cash content spend of approximately $17 billion, generating the difference that benefits reported operating profit relative to free-cash-flow conversion (which improved as the gap narrowed in 2022-2024). For 2025 guidance the company has signaled continued content spend in the $17-18 billion range. Critics of Netflix accounting have pointed to the front-loaded amortization as a structural risk if subscriber engagement declines unexpectedly; defenders argue the methodology accurately reflects viewing patterns. The asset is the single largest line item on the Netflix balance sheet, with total assets at approximately $50 billion.
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CorpDigest. "Netflix, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/netflix/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Netflix, Inc. reported $45B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/netflix/financials" target="_blank" rel="noopener">CorpDigest — Netflix, Inc. financials</a></div>