Bringing the fundamentals into focus…

Netflix, Inc. (NFLX) fundamentals: overall 58/100 — StockQuotient

NFLX Communication Services

Netflix, Inc.

$69.70+1.47%

Price as of close on Oct 7, 2026

Basics

Sector: Communication Services
Industry: Entertainment
Country: United States
Market cap: 290.2B USD
Enterprise value: 286.9B USD
Full-time employees: 16,000

This snapshot is over eight days old. A refresh may be pending.

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.53 vs a peer median of 0.65)higher risk: bigger price swings (beta 1.53 vs peers 0.65)

Ranks #161 of 456 communication services companies (top 36%)

See how it ranks against its peers

Worth knowing

Operating margin at a 6-year high. 29% in 2025, the best of the last 6 years.
Netflix kept 29% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Profits growing faster than sales. Since 2022: revenue +43%, operating profit +137%.
Since 2022, Netflix's revenue grew 43% while operating profit grew 137%: each extra dollar of sales is adding more profit.
Share count shrinking. Shares outstanding down 6.5% from December 2022 to June 2026.
Netflix had 6.5% fewer shares at June 2026 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $25.0B in 2020 to $45.2B in 2025.
Netflix's fiscal-year revenue rose in each of the five years to 2025, from $25.0B to $45.2B.

StockQuotient Score

58/ 100

Valuation

Is the price right?

37/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ FCF yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.7%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score 0.43Sector median: 0.0329 · MAD: 0.0329

EBITDA yield4.9%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.59Sector median: 0.0868 · MAD: 0.0638

Free cash flow yield3.8%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.59Sector median: 0.0737 · MAD: 0.0597

Other data (not scored)

Book yield10.4%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.4628 · MAD: 0.3140

Growth

Is it growing?

79/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 3.2%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth
▲ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth35.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.92Sector median: 0.0797 · MAD: 0.3051

3-year revenue growth14.6%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 1.67Sector median: 0.0305 · MAD: 0.0690

Revenue growth16.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.82Sector median: 0.0299 · MAD: 0.0714

Profitability

Does it earn well?

95/100

Strong

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin29.7%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.75Sector median: 0.0820 · MAD: 0.0780

Return on assets23.4%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.72Sector median: 0.0273 · MAD: 0.0316

Return on invested capital30.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 3.36Sector median: 0.0612 · MAD: 0.0709

Other data (not scored)

Gross margin49.1%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.4627 · MAD: 0.1851

Return on equity45.3%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.0540 · MAD: 0.1008

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Sep 30, 2026 close: Safety percentile 22 → 23

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 1, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.53

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -3.03Sector median: 0.6500 · MAD: 0.2895

Current ratio1.14×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.35Sector median: 1.3915 · MAD: 0.7080

Debt / equity0.56×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.53Sector median: 0.3774 · MAD: 0.3405

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Jul 17, 2026 · compared with the quarter ended Mar 31, 2026

No major changes

	Previous quarter	Latest quarter	Change
Revenue (12 months)	46.9B USD	48.4B USD	+3.2%
Net income (12 months)	13.4B USD	13.6B USD	+2.1%
Operating margin	29.7%	29.7%	−0.0 pts
Free cash flow (12 months)	11.9B USD	11.2B USD	−6.2%
Debt	15.4B USD	16.8B USD	+9.3%
Cash	12.3B USD	9.1B USD	−25.8%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Communication Services · 67 companies

Valuations in Communication Services are within their usual range since 2016.

46% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +13% and earnings +11% (medians): earnings grew faster than prices.
Median price-to-sales is −6% vs the whole market, against a usual −7%.

2016Shaded: most expensive fifth of its range2026

Shown for Communication Services: too few Entertainment companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Operating margin	20.9%	17.8%	20.6%	26.7%	29.5%	▲ 2.8 pts
Net margin	17.2%	14.2%	16.0%	22.3%	24.3%	▲ 2.0 pts
Return on assets (ROA)	11.5%	9.2%	11.1%	16.2%	19.8%	▲ 3.5 pts
Return on equity (ROE)	32.3%	21.6%	26.3%	35.2%	41.3%	▲ 6.1 pts
Free cash flow margin	-0.4%	5.1%	20.5%	17.7%	20.9%	▲ 3.2 pts
Current ratio	0.95×	1.17×	1.12×	1.22×	1.19×	▼ 2.7%
Debt to equity	1.02×	0.69×	0.73×	0.70×	0.58×	▼ 17%
Interest coverage	8.09×	7.98×	9.94×	14.49×	17.16×	▲ 18%

NFLX price history

Price history is added with the daily price update and will appear after the next one.

Similar companies

Sector leaderboards

Marvelous Inc.7844.T93/ 100

EverQuote, Inc.EVER91/ 100

Telecomunicações Brasileiras S.A. - TelebrasTELB3.SA90/ 100