Netflix (NFLX) FY2025 10-K Review | DHI Capital Research

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETVARIANCE YoYBUSINESS QUALITYQUARTERLYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
Total revenues	45,183	39,001	33,723	1
Cost of revenue	23,275	21,038	19,715
Research and development	3,391	2,925	2,676
Selling, general and administrative	1,888	1,702	1,720
Depreciation, depletion and amortization	333	329	357
Operating income	13,327	10,418	6,954	1
Interest expense	—	—	700
Other income (expense), net	172	267	(49)
Income before income taxes	12,723	9,966	6,205	1
Income tax provision	1,741	1,254	797	3
— of which current	2,190	1,845	1,340	1
Net income attributable to common	10,981	8,712	5,408	3
Diluted earnings per share	$2.53	$1.98	$1.20
Weighted-average diluted shares	4,344	4,393	4,495	1

Cash flow · $ millions	2025	2024	2023
Net income incl. noncontrolling interests	10,981	8,712	5,408	1
Depreciation, depletion and amortization	333	329	357
Share-based compensation	368	273	339
Deferred income taxes	(449)	(591)	(543)
Change in payables	(8)	121	94
Net cash provided by operating activities	10,149	7,361	7,274	4
Capital expenditure	688	440	349	1
Acquisitions, net of cash	17	0	0
Net cash used in investing activities	1,042	(2,182)	542
Repurchases of common stock	9,127	6,264	6,045	1
Debt issued	0	1,794	0
Debt repaid	1,833	400	0
Net cash used in financing activities	(10,346)	(4,074)	(5,951)
Cash and equivalents at end of period	9,039	7,807	7,119

Balance sheet · $ millions	2025	2024
Cash and cash equivalents	9,034	7,805
Short-term investments	29	1,779
Total current assets	13,020	13,100
Property, plant and equipment, net	2,004	1,594
Intangible assets, net	32,778	32,452
Total assets	55,597	53,630
Accounts payable	901	900
Total current liabilities	10,981	10,755
Long-term debt	13,464	13,798
Total liabilities	28,982	28,887
Stockholders' equity	26,615	24,744
Total equity	26,615	24,744

Largest FY/FY moves · $ millions, ranked by \|Δ\|	FY2025	FY2024	Δ $	Δ %	Reading
Net cash used in financing activities · CF	(10,346)	(4,074)	−6,272	-154.0%	◐ outsized
Total revenues · IS	45,183	39,001	+6,182	+15.9%	—
Net cash used in investing activities · CF	1,042	(2,182)	+3,224	+147.8%	◐ outsized
Operating income · IS	13,327	10,418	+2,909	+27.9%	—
Repurchases of common stock · CF	9,127	6,264	+2,863	+45.7%	—
Net cash provided by operating activities · CF	10,149	7,361	+2,788	+37.9%	—
Income before income taxes · IS	12,723	9,966	+2,757	+27.7%	—
Net income attributable to common · IS	10,981	8,712	+2,269	+26.0%	—
Net income incl. noncontrolling interests · CF	10,981	8,712	+2,269	+26.0%	—
Cost of revenue · IS	23,275	21,038	+2,237	+10.6%	—
Total assets · BS	55,597	53,630	+1,967	+3.7%	—
Stockholders' equity · BS	26,615	24,744	+1,871	+7.6%	—
Total equity · BS	26,615	24,744	+1,871	+7.6%	—
Debt issued · CF	0	1,794	−1,794	-100.0%	—

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	42.8% sector median 16.6%	strong
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	-1.3% sector median +0.0%	shrinking
Debt to equity (current debt + long-term debt) ÷ year-end equity	0.51 sector median 0.71	moderate
FCF consistency, 5yr operating cash flow − capital expenditure, per year	positive 4 of 5	mostly positive
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 28.2% sector median 15.9%	cyclical

Quarterly · as filed in 10-Q/10-K · $ millions	MAR 25	JUN 25	SEP 25	MAR 26	JUN 26
Total revenues	10,543	11,079	11,510	12,250	12,560
Cost of revenue	5,263	5,325	6,164	5,888	6,037
Research and development	823	825	854	960	1,008
Selling, general and administrative	421	441	458	603	499
Depreciation, depletion and amortization	80	80	87	99	101
Operating income	3,347	3,775	3,248	3,957	4,193
Interest expense	184	183	175	262	176
Other income (expense), net	51	40	36	2,852	52
Income before income taxes	3,214	3,632	3,109	6,547	4,069
Income tax provision	323	506	562	1,264	667
Net income attributable to common	2,890	3,125	2,547	5,283	3,401
Diluted earnings per share	$0.66	$0.72	$5.87	$1.23	$0.80
Weighted-average diluted shares	4,370	4,349	434	4,298	4,261
Net cash provided by operating activities	2,789	2,423	2,825	5,290	1,744

Largest QoQ moves · latest vs prior filed quarter	Prior	Latest	Δ $	Δ %
Net cash provided by operating activities	5,290	1,744	−3,546	-67.0%
Other income (expense), net	2,852	52	−2,800	-98.2%
Income before income taxes	6,547	4,069	−2,478	-37.8%
Net income attributable to common	5,283	3,401	−1,882	-35.6%
Income tax provision	1,264	667	−597	-47.2%
Total revenues	12,250	12,560	+310	+2.5%
Operating income	3,957	4,193	+236	+6.0%
Cost of revenue	5,888	6,037	+149	+2.5%

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$565,658M	10-K cover · as of 2025-06-30
Insider Form 4s, 90d	41 filings · 0 buys / 10 sells	net selling · −$49,429,815
· Hastings Reed	SELL $28,579,559	Form 4 filed 2026-06-02 · open market
· Sarandos Theodore A	SELL $5,969,731	Form 4 filed 2026-08-04 · open market
· Hastings Reed	SELL $4,664,476	Form 4 filed 2026-06-02 · open market
· Peters Gregory K	SELL $2,422,421	Form 4 filed 2026-05-07 · open market
· Sarandos Theodore A	SELL $2,003,423	Form 4 filed 2026-08-04 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
Institutional %	—	needs 13F aggregation — not read yet, never estimated
· 10b5-1 adopted	Spencer Neumann, Chief Financial Officer	10/23/2025 · 314,880 shares · 10-K insider trading arrangements
· 10b5-1 terminated	Greg Peters, Co-CEO and Director	10/30/2025 · 1,585,830 shares · 10-K insider trading arrangements
· 10b5-1 adopted	Greg Peters, Co-CEO and Director	10/30/2025 · 2,951,230 shares · 10-K insider trading arrangements
· 10b5-1 adopted	Ann Mather, Director	11/7/2025 · 23,430 shares · 10-K insider trading arrangements

COMMENTARY4EARNINGS QUALITY5

revenue growth◐PARTLY

“Revenues for the year ended December 31, 2025 increased 16% as compared to the year ended December 31, 2024, primarily due to the growth in memberships, price increases, and increased advertising revenue”

Total revenues $39.0B → $45.2B+6,182

Quoted 16%Total revenues: change +15.9%

Every quoted figure reconciles to the filed lines: 16% against total revenues. The source sentence carries qualifiers beyond the 40-word quote limit; carried as partly supported.

1 LINES TRACED · ITEM 7 · REVENUES · P.21

net income growth◐PARTLY

“Net income for the year ended December 31, 2025 increased $2,270 million as compared to the prior comparative period, primarily due to a $2,909 million increase in operating income”

Net income attributable to common $8.7B → $11.0B+2,269

Operating income $10.4B → $13.3B+2,909

Income tax provision $1.3B → $1.7B+487

Quoted $2,909 millionOperating income: change $2.9B

1 of 2 quoted figures reconcile ($2,909 million against operating income); $2,270 million does not map to a filed line on this page — carried as partly supported. The source sentence carries qualifiers beyond the 40-word quote limit; carried as partly supported.

3 LINES TRACED · ITEM 7 · RESULTS OF OPERATIONS · P.20

effective tax rate◐PARTLY

“The increase in our effective tax rate for the year ended December 31, 2025, as compared to the year ended December 31, 2024, is primarily due to a decrease in tax benefits associated with federal research and development tax credits”

Income tax provision $1.3B → $1.7B+487

Income before income taxes $10.0B → $12.7B+2,757

The quote contains no checkable figures; the lines it references are shown, and nothing on this page confirms or contradicts it. The source sentence carries qualifiers beyond the 40-word quote limit; carried as partly supported.

2 LINES TRACED · ITEM 7 · PROVISION FOR INCOME TAXES · P.24

operating cash flow◐PARTLY

“Net cash provided by operating activities for the year ended December 31, 2025 increased $2,788 million as compared to the year ended December 31, 2024, primarily driven by a $2,270 million or 26% increase in net income”

Net cash provided by operating activities $7.4B → $10.1B+2,788

Net income incl. noncontrolling interests $8.7B → $11.0B+2,269

Quoted $2,788 millionNet cash provided by operating activities: change $2.8B

Quoted 26%Net income incl. noncontrolling interests: change +26.0%

2 of 3 quoted figures reconcile ($2,788 million against net cash provided by operating activities; 26% against net income incl. noncontrolling interests); $2,270 million does not map to a filed line on this page — carried as partly supported. The source sentence carries qualifiers beyond the 40-word quote limit; carried as partly supported.

2 LINES TRACED · ITEM 7 · CASH FLOWS · P.26

Cash tax vs book charge◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Cash income taxes paid$2,220M

Total book tax charge$1,741M

Divergence ($2,220M − $1,741M) ÷ $1,741M+27.5%

Deferred tax asset $1,178M → $1,955M+777M

Cash taxes paid diverge from the total book charge by +27.5%. Carried as watch.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash conversion stability✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating cash flow, three years (newest first)$10,149M · $7,361M · $7,274M

Net income attributable to common, three years (newest first)$10,981M · $8,712M · $5,408M

OCF ÷ NI, three years (newest first)0.92× · 0.84× · 1.35×

Swing 1.35× − 0.84×0.51×

Cause verified by this pageno

OCF ÷ NI ran 0.92× · 0.84× · 1.35× across three years — swing 0.51×, inside the 1.00× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Capital returned vs free cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Capital returned ÷ FCF, three years (newest first)0.96× · 0.91× · 0.87×

Current year ($0M + $9,127M) ÷ ($10,149M − $688M)0.96×

Capital returned ran 0.96× of free cash flow (threshold 1.00×).

EARNINGS-QUALITY FLAG · 3 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Stock compensation in cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Share-based compensation$368M

Operating cash flow$10,149M

Share $368M ÷ $10,149M3.6%

Share-based compensation is 3.6% of operating cash flow (threshold 15%).

EARNINGS-QUALITY FLAG · 1 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Share-count artefact✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Weighted-average shares 4,393M → 4,344M-1.1%

Shares outstanding, year-end 4,277.6M → 4,222.2M-1.3%

EPS-growth vs NI-growth gap+1.4pp

No share-count artefact: weighted-average and year-end counts do not diverge in direction.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Return on equity →

Terms and acronyms used on this page

Income statement & cash flow

OCFOperating cash flow — net cash provided by operating activities, as reported.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

Balance sheet & market

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

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Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Netflix's Form 10-K for FY2025 (accession 0001065280-26-000034), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. NFLX is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.