NFLX · NETFLIX INC
10-Q filed 2026-04-17 period 2026-03-31
91 Strong
confidence high · source filing on SEC.gov ↗
- Received a massive $2.8 billion termination fee from Paramount Skydance on behalf of WBD following the termination of the streaming/studios merger agreement.
- Revenue increased 16% YoY to $12.25 billion, driven by membership growth, price increases, and expanding ad-supported subscription tiers.
- Repurchased 13.5 million shares of common stock for $1.3 billion during the quarter, with $6.8 billion remaining under the current authorization.
Filing Health Score pillars
Profitability 25%
92
Revenue grew 16% year-over-year to $12.25 billion, and operating margin expanded to 32.3% from 31.7% in the prior year period, demonstrating positive operating leverage (Consolidated Statements of Operations / MD&A Results of Operations).
Balance sheet 20%
88
Cash and cash equivalents of $12.26 billion nearly cover the total debt of $14.36 billion, interest coverage is exceptionally strong at over 15x, and share count continues to decline due to $1.3 billion in repurchases (Consolidated Balance Sheets / Note 7 Debt).
Cash generation 20%
90
Operating cash flow of $5.29 billion matches net income, and FCF margin reached 41.6% (boosted by the $2.8 billion WBD termination fee), while capex intensity remains low at 1.6% of revenue (Consolidated Statements of Cash Flows).
Risk flags 20%
95
No going-concern issues, restatements, or material control weaknesses were reported, and the termination of the WBD merger resulted in a highly favorable $2.8 billion fee (Note 6 Acquisitions / Item 4).
Mgmt signal 15%
90
Management reports strong momentum across all geographic segments, led by APAC and LATAM, with overall revenue up 16% driven by membership growth and price increases (MD&A Results of Operations).
Key metrics (Three Months Ended March 31, 2026)
revenue: $12,249,757 thousand
cash and equivalents: $12,259,772 thousand
total debt: $14,360,516 thousand
shares outstanding: 4,212,794,271
net income: $5,282,791 thousand
period: Three Months Ended March 31, 2026
operating cash flow: $5,290,205 thousand
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.