NFLX · NETFLIX INC
10-Q filed 2026-07-17 period 2026-06-30
83 Strong
confidence high · source filing on SEC.gov ↗
- Netflix received a massive $2.8 billion termination fee in Q1 2026 after Warner Bros. Discovery terminated their merger agreement to combine with Paramount Skydance.
- The Board of Directors authorized an additional $25 billion share repurchase program in April 2026, with $5.9 billion in shares already repurchased in the first half of 2026.
- Operating cash flow for the first half of 2026 rose 35% to $7.0 billion, despite being impacted by a $729 million non-routine tax payment in Brazil.
vs. prior filing (10-Q filed 2026-04-17)
FHS 91 → 83 (-8) · Strong -> Strong
Profitability -7Balance sheet -8Cash generation -15Risk flags -10Mgmt signal +0
Filing Health Score pillars
Profitability 25%
85
Revenue grew 13% YoY in Q2 2026, though operating margin slightly declined from 34.1% to 33.4% due to higher technology and marketing spend (Consolidated Statements of Operations / MD&A Results of Operations).
Balance sheet 20%
80
Cash and equivalents stand at $9.1B against total debt of $14.3B, with a current ratio of 1.14 and a declining share count driven by $5.9B in repurchases during the first half of 2026 (Consolidated Balance Sheets / Note 7 Debt).
Cash generation 20%
75
Operating cash flow of $7.0B for the six months ended June 30, 2026, was strong but trailed net income of $8.7B, which was elevated by a non-operating $2.8B termination fee; content additions remained high at $9.8B (Consolidated Statements of Cash Flows).
Risk flags 20%
85
No going-concern or control weaknesses were noted, but risk flags include a $729M non-routine tax payment in Brazil and the termination of the major WBD merger agreement (Note 6 Acquisitions / MD&A Cash Flows).
Mgmt signal 15%
90
Management signaled strong confidence by authorizing an additional $25B share repurchase program in April 2026 and successfully collecting a $2.8B termination fee from the aborted WBD transaction (MD&A Share Repurchases / Note 6 Acquisitions).
Key metrics (Six Months Ended June 30, 2026)
net income: $8,684,205 thousand
cash and equivalents: $9,099,232 thousand
total debt: $14,309,306 thousand
shares outstanding: 4,163,939,676
revenue: $24,809,695 thousand
period: Six Months Ended June 30, 2026
operating cash flow: $7,034,017 thousand
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.