Netflix, Inc.
- Open
- 72.64
- Day high
- 73.37
- Day low
- 72.30
- Prev close
- 73.83
- Volume
- 4.3M
- Mkt cap
- $308.4B
- P/E (TTM)
- 23.2
- EPS (TTM)
- $3.16
- P/B
- 9.9
- P/S
- 6.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$80.1M over the last 3 months (0 open-market buys, 13 sales)
- 🏛Institutions accumulating (13F)
Netflix, Inc. (NFLX) is a Communication Services company listed on NASDAQ. The stock is down 41% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 13 sales (SEC Form 4). Drillr has 2 published research articles covering NFLX.
Netflix, Inc. (NFLX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NFLX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 16, 2026 | $0.76 | $1.23 | +61.2% | $12.3B | +0.6% |
| Jan 20, 2026 | $0.55 | $0.56 | +1.4% | $12.1B | +0.7% |
| Oct 21, 2025 | $0.70 | $0.59 | -15.2% | $11.5B | +0.0% |
| Jul 17, 2025 | $0.71 | $0.72 | +1.4% | $11.1B | +0.2% |
| Apr 17, 2025 | $0.57 | $0.66 | +15.8% | $10.5B | +0.3% |
| Jan 21, 2025 | $0.42 | $0.43 | +2.4% | $10.2B | +1.4% |
| Oct 17, 2024 | $0.51 | $0.54 | +5.9% | $9.8B | -2.9% |
| Jul 18, 2024 | $0.47 | $0.49 | +4.3% | $9.6B | +0.3% |
| Apr 18, 2024 | $0.45 | $0.53 | +17.8% | $9.4B | +7.4% |
| Jan 23, 2024 | $0.22 | $0.21 | -4.5% | $8.8B | +1.3% |
| Oct 18, 2023 | $0.35 | $0.37 | +5.7% | $8.5B | +0.0% |
| Jul 19, 2023 | $0.28 | $0.33 | +17.9% | $8.2B | -1.3% |
NFLX insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | KILGORE LESLIE Jdirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | Hoag Jay Cdirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | BARTON RICHARD Ndirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | Karbowski Jeffrey Williamofficer: Chief Accounting Officer | Grant | 983 | $74.19 |
| Jul 2, 2026 | MATHER ANNdirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | RICE SUSAN Edirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | Mertz Elinordirector | Grant | 843 | $74.19 |
| Jul 2, 2026 | SMITH BRADFORD Ldirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | Sweeney Anne Mdirector | Grant | 842 | $74.19 |
| Jul 2, 2026 | Masiyiwa Strivedirector | Grant | 843 | $74.19 |
| Jul 2, 2026 | Dopfner Mathiasdirector | Grant | 842 | $74.19 |
| Jun 18, 2026 | SMITH BRADFORD Ldirector | Option | 6,460 | $9.67 |
| Jun 18, 2026 | SMITH BRADFORD Ldirector | Option | 6,090 | $10.26 |
| Jun 18, 2026 | SMITH BRADFORD Ldirector | Sell | 22,190 | $77.21 |
| Jun 18, 2026 | SMITH BRADFORD Ldirector | Option | 5,330 | $11.72 |
Source: NFLX SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full NFLX insider & 13F page →NFLX research & analysis
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Netflix, Inc. company profile
Overview
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment streaming giant founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. Originally launched as a DVD-by-mail rental service to compete with traditional video rental stores like Blockbuster, Netflix revolutionized the entertainment industry by pioneering the subscription-based streaming model in 2007. The company went public in 2002 and has since grown from a domestic DVD service to the world's leading streaming entertainment platform, serving over 300 million paid households across 190 countries. Netflix is headquartered in Los Gatos, California, and has become synonymous with the shift from traditional broadcast television to on-demand digital entertainment consumption.
Business
Netflix operates in the global entertainment streaming industry, providing on-demand video content through internet-connected devices. The streaming industry emerged as a disruptive force to traditional television broadcasting, cable networks, and physical media distribution, allowing consumers to watch content anytime, anywhere, without the constraints of scheduled programming or physical media. Netflix's core offering is its subscription-based streaming service, which provides unlimited access to a vast library of television series, documentaries, feature films, and mobile games across various genres and languages. The content is delivered through internet-connected devices including smart TVs, computers, tablets, smartphones, gaming consoles, and streaming media players like Roku and Apple TV. The platform uses sophisticated recommendation algorithms to personalize content discovery for each user based on viewing history and preferences. The company operates through a single primary business segment - streaming entertainment services. However, Netflix maintains a small legacy DVD-by-mail service in the United States, though this represents less than 1% of total revenue. The streaming business can be understood through several key components: 1. **Content Library and Production**: Netflix offers both licensed content from third-party studios and networks, as well as original content produced by Netflix Studios. Original content, known as "Netflix Originals," has become increasingly important, representing a significant portion of viewing hours and serving as a key differentiator from competitors. 2. **Global Content Strategy**: The company produces content in over 50 countries, creating locally relevant programming that can also appeal to global audiences. This includes everything from Korean dramas like "Squid Game" to Spanish series like "Money Heist." 3. **Technology Platform**: Netflix's streaming technology infrastructure handles massive scale video delivery, personalized recommendations, and user interface optimization across thousands of device types. 4. **Emerging Initiatives**: The company has expanded into mobile gaming (included with subscription at no additional cost) and live events programming, including sports like NFL games and WWE wrestling.
Revenue model
Netflix generates revenue primarily through monthly subscription fees paid by its global subscriber base. The company offers multiple subscription tiers with different pricing and features, including a newer advertising-supported tier launched in 2022 at a lower price point. Revenue streams include: 1. **Subscription Revenue** (95%+ of total revenue): Monthly recurring fees from over 300 million paid households globally, with pricing varying by geographic market and plan tier. In the U.S., plans range from $6.99 for the ad-supported tier to premium tiers around $15-20 monthly. 2. **Advertising Revenue** (emerging segment): Revenue from advertisers on the ad-supported tier, which is expected to roughly double in 2025 and become increasingly meaningful by 2026. Netflix targets the $25 billion connected TV advertising market. Netflix's customers are individual consumers and households who pay directly for the service, making it a direct-to-consumer business model. The company has been implementing measures to convert password sharing into additional paid subscriptions, expanding its addressable market. Several factors influence Netflix's profitability margins. **Positive margin drivers** include: economies of scale as content costs are spread across a larger subscriber base; pricing power due to the value proposition of extensive content libraries; reduced customer acquisition costs through word-of-mouth and organic discovery; and the shift toward higher-margin original content that can be monetized globally without licensing fees. **Margin pressures** come from: intense competition from well-funded rivals like Disney+, HBO Max, and Amazon Prime Video driving up content acquisition and production costs; the need for continuous investment in original programming to differentiate the service; foreign exchange headwinds as Netflix operates globally but reports in USD; and the ongoing costs of technology infrastructure and international expansion into lower-revenue markets. The company's content spending of approximately $17-18 billion annually represents its largest expense, but this investment creates a library asset that generates viewing value over multiple years. Netflix has achieved operating margins of around 26% by 2024, demonstrating the scalability of its business model as subscriber growth and pricing optimization outpace content cost increases.
Competitive moat
Netflix possesses a moderately strong competitive moat built on several interconnected advantages, though this moat faces ongoing challenges from well-funded competitors and changing consumer preferences. The company's primary moat stems from its **massive scale and global reach**. With over 300 million paid households, Netflix can amortize content costs across a larger subscriber base than most competitors, enabling higher content spending per subscriber and more diverse programming. This scale advantage is particularly pronounced for original content, where Netflix can justify larger production budgets knowing the content will be available globally. Netflix's **data and personalization capabilities** represent another significant advantage. The platform has collected viewing data from hundreds of millions of users over nearly two decades, enabling sophisticated recommendation algorithms that improve user engagement and retention. This data also informs content production decisions, helping Netflix create programming more likely to resonate with specific audience segments. The company's **first-mover advantage in streaming** established strong brand recognition and user habits. Netflix became synonymous with streaming entertainment, creating customer loyalty and making it the default choice for many consumers entering the streaming market. However, Netflix's moat faces substantial challenges. **Deep-pocketed competitors** like Disney, Amazon, Apple, and traditional media companies have entered streaming with significant content investments and, in some cases, willingness to operate at losses to gain market share. These competitors often have additional revenue streams (theme parks, e-commerce, hardware) that can subsidize their streaming operations. **Content fragmentation** has weakened Netflix's position as media companies have reclaimed their content for proprietary platforms. Major franchises and popular series have moved to competitors' services, forcing Netflix to rely more heavily on original content. The **commoditization risk** in streaming is significant, as the core technology and user experience across platforms has become increasingly similar. Success increasingly depends on content quality and exclusive programming, areas where competitors with established entertainment assets and relationships may have advantages. Netflix's moat is best characterized as moderately strong but under pressure, requiring continuous innovation and content investment to maintain its competitive position in an increasingly crowded and well-funded market.
Risks & safety
Netflix demonstrates a solid financial position with manageable risk levels, though valuation metrics suggest limited margin of safety at current prices. **Liquidity and Solvency:** • Strong cash position: $7.2 billion in cash and short-term investments as of Q1 2025 • Positive free cash flow generation: $2.7 billion in Q1 2025, targeting $8 billion for full year 2025 • Manageable debt levels: Debt-to-equity ratio of 0.73, with most debt in long-term fixed-rate instruments • Current ratio of 1.20, indicating adequate short-term liquidity • No immediate solvency concerns given strong cash generation and access to capital markets **Valuation Metrics:** • Price-to-earnings ratio of 34.5x based on Q1 2025 results, above historical market averages • EV/EBITDA of 14.0x, reasonable for a growing technology/media company • Price-to-book ratio of 16.6x, reflecting premium valuation typical of asset-light business models • Graham number of $92.52 versus current price near $970, suggesting significant overvaluation by traditional value metrics **Other Considerations:** • Business model generates predictable recurring revenue with high customer lifetime value • Operating leverage provides earnings growth potential as revenue scales • Free cash flow conversion has improved significantly, reaching nearly $7 billion in 2024 • Geographic and content diversification reduces concentration risk • However, high valuation multiples leave little room for execution disappointments or market multiple compression
Recent development
Over the past few years, Netflix has executed several major strategic initiatives that have transformed its business model and competitive positioning. The most significant development has been the **launch and scaling of an advertising-supported subscription tier** in late 2022, which now represents over 55% of new sign-ups in markets where it's available. This ad-tier has grown 65% quarter-over-quarter and is expected to roughly double advertising revenue in 2025, creating a new revenue stream that targets the $25 billion connected TV advertising market. Netflix has also implemented a **comprehensive crackdown on password sharing**, converting unpaid viewers into paying subscribers through paid sharing enforcement. This initiative, completed globally by 2024, has driven meaningful subscriber growth and revenue increases as households that previously shared accounts now maintain separate paid subscriptions. The company has significantly **expanded its original content production globally**, with major commitments including $1 billion in Mexico and $2.5 billion in Korean content. This strategy has produced global hits like "Squid Game" and "Money Heist," demonstrating Netflix's ability to create locally relevant content with worldwide appeal. The content strategy has evolved from primarily licensing third-party content to developing a substantial original programming slate across 50+ countries. **Live events and sports programming** represents a newer strategic direction, with Netflix securing rights to NFL games, WWE wrestling, and high-profile boxing matches. This live programming strategy aims to create cultural moments that drive subscriber acquisition and engagement, though Netflix has avoided expensive full-season sports rights in favor of selective, event-based programming. Netflix has also ventured into **mobile gaming**, offering over 100 games included with subscriptions at no additional cost. The gaming strategy focuses on narrative games based on Netflix intellectual property, party games, and content for children, targeting the $140 billion global gaming market with a measured investment approach. Finally, Netflix has been developing **proprietary advertising technology capabilities**, launching its own ad tech stack to replace third-party solutions and improve advertiser targeting and measurement capabilities. This technological development supports the company's goal of capturing a larger share of the connected TV advertising market as the ad-supported tier scales.
NFLX company profile · for informational purposes only — not investment advice.
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