Netflix, Inc.NFLX
NasdaqGS•Communication Services•Entertainment
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Netflix, Inc. (NFLX) reported trailing twelve months revenue of $46.89B as of March 2026, a 16.7% increase year-over-year. Quarterly revenue reached $12.25B, reflecting continued top-line momentum.
Netflix, Inc. generated $13.37B in TTM net income, with quarterly EBITDA of $11.13B. The operating margin expanded from 31.7% to 32.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (32.3%) and net margin (43.1%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 27.4% a year ago, signaling stronger bottom-line efficiency.
NFLX trades at a P/E of 29.9x (in line with broad market averages) and a P/S of 8.5x. The price-to-book ratio of 12.8x indicates a significant premium over book value.
The company generated $5.09B in free cash flow over the trailing twelve months, a 91.4% increase year-over-year, indicating cash generation ability. The balance sheet shows $61.02B in total assets with $13.36B in long-term debt against $31.13B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~28.7%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 38.2% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~29.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~29.8% — no sign of cost or pricing stress.
FCF covers net income by 0.8x on average — earnings are well-supported by cash generation.
D/E ratio is 0.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 2.3% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation