Netflix, Inc.

netflix.com

What Do They Do?

Streams TV series, films, games and live programming to members around the world.

How Do They Make Money?

Members are billed monthly in advance for streaming access; Netflix earns that fee over the month as it provides the service. It also earns money from ads, consumer products and live experiences.

FY2025 revenue

Who Are Their Customers?

Members stream Netflix’s entertainment service; they can access it through partners such as electronics makers, TV distributors, mobile operators and internet providers.

Do Revenues Turn Into Profits?

Yes. It kept 24 cents of every revenue dollar as net income in FY2025 and turned 21 cents into free cash flow.

Operating income, FY2025

29% of revenue

▲ +28% vs FY2024 ($10.4B, 27%)

Net income, FY2025

24% of revenue

▲ +26% vs FY2024 ($8.7B, 22%)

Free cash flow, FY2025

21% of revenue

▲ +37% vs FY2024 ($6.9B, 18%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to Sep 30, 2026

Revenue: ▲ +12%; vs $11.5B in Q3 FY2025
Net income: ▲ +44%; vs $2.5B in Q3 FY2025

Jul 16, 2026 Netflix narrows its 2026 revenue forecast It set a $51.0-$51.4B revenue range and kept its 31.5% operating-margin forecast.
Jun 5, 2026 Jay Hoag becomes Board chair His appointment took effect at the conclusion of the annual meeting.
Apr 16, 2026 Reed Hastings leaves the Board chair role He chose not to stand for reelection as a director; his term as chair was to end at the annual meeting.
Feb 27, 2026 Warner Bros. merger agreement ends Warner Bros. Discovery terminated the agreement; Netflix received a $2,800,000,000 termination fee.

Growing. Revenue grew 52% in 4 years, from $29.7B in FY2021 to $45.2B in FY2025, about 11% a year.

Live programming The older description listed TV series, films and games; the latest report says the entertainment offering has expanded to include live programming.

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