NFLX · 10-Q · 2026Q3 · Full report
Cost of Revenues and Content
NETFLIX INC · 2026-10-21 · Importance 57 · Surprise 50 · Contradicted
Q3 2026 cost of revenues decreased $85 million, or 1%, to $6.079 billion from $6.164 billion. The Q3 decrease primarily reflected the absence of a $619 million Brazil non-income-tax assessment recorded in the prior-year period, partly offset by a $233 million increase in content amortization. Nine-month cost of revenues increased $1.252 billion, or 7%, to $18.004 billion, primarily because content amortization increased $1.107 billion for existing and new content.
Key facts
- Cost of revenues for the three months ended September 30, 2026: $6,079,016 (in thousands). source
- Amortization of content assets for the three months ended September 30, 2026: $4,235,454 (in thousands). source
- For the three months ended September 30, 2026, NETFLIX INC reported cost of revenues of $6,079,016 thousand, a decrease of $85,234 thousand compared to Q3 2025 (which was $6,164,250 thousand). source
- For the three months ended September 30, 2026, NETFLIX INC reported other cost of revenues of $1,843,562 thousand compared to $2,161,506 thousand in Q3 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -47.2% | Cost of revenues for the three months ended September 30, 2026: $6,079,016 (in thousands). |
| operating_income | positive | realized | +2.5% | For the three months ended September 30, 2026, NETFLIX INC reported other cost of revenues of $1,843,562 thousand compared to $2,161,506… |
| operating_income | positive | realized | +0.7% | For the three months ended September 30, 2026, NETFLIX INC reported cost of revenues of $6,079,016 thousand, a decrease of $85,234… |