NFLX · 10-Q · 2026Q3

NETFLIX INC

Filed 2026-10-21 · Other · View original filing on EDGAR

Ranked Events

• Capital Return ProgramImportance 75 · Surprise 64
  Netflix repurchased $10.782 billion of common stock during the first nine months of 2026, up 53.0% from $7.048 billion in the comparable 2025 period. Third-quarter repurchases totaled $4.797 billion, compared with…
• WBD Transaction TerminationImportance 74 · Surprise 100
  Netflix received a $2.8 billion termination fee during the first quarter of 2026 after the WBD transaction was terminated. The fee increased nine-month interest and other income by $2.820 billion to $2.947 billion from…
• Free Cash FlowImportance 67 · Surprise 66
  Nine-month operating cash flow increased $2.159 billion to $10.196 billion from $8.038 billion, helped by the $2.8 billion WBD termination fee and higher noncash adjustments. The increase was partly offset by $2.337…
• Operating Income and MarginsImportance 64 · Surprise 56
  Q3 2026 operating income increased $1.210 billion, or 37%, to $4.459 billion from $3.248 billion. Operating margin expanded to 34.6% from 28.2%, a 6.4-percentage-point improvement, because revenue growth and lower cost…
• Income Tax Rate ChangesImportance 63 · Surprise 64
  Q3 2026 income-tax provision increased $90 million to $653 million from $562 million, while the effective tax rate decreased primarily because of higher U.S. federal research-and-development tax-credit benefits.…
• Content Investment and ObligationsImportance 60 · Surprise 40
  Content amortization increased by $233 million in the third quarter and by $1.107 billion for the first nine months, reflecting investment in existing and new content. Netflix said it expects to continue significantly…
• Cost of Revenues and ContentImportance 57 · Surprise 50
  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…
• Guidance and OutlookImportance 56 · Surprise 24
  Management expects cash flows from operations, available funds and financing sources to remain sufficient to meet Netflix’s cash needs for the next twelve months and beyond. As of September 30, 2026, contractual…
• Content ObligationsImportance 56 · Surprise 24
  Netflix reported $25.223 billion of total content obligations at September 30, 2026, including $11.777 billion due within 12 months and $13.446 billion due thereafter. Of the total, $19.6 billion was not recognized on…
• Geographic Revenue PerformanceImportance 54 · Surprise 40
  All four reported regions delivered year-over-year revenue growth in the third quarter and first nine months of 2026. For the quarter, United States and Canada revenue rose 11% to $5.628 billion, EMEA increased 11% to…
• Debt and Liquidity PositionImportance 54 · Surprise 14
  Aggregate outstanding notes totaled approximately $15.132 billion at September 30, 2026, compared with $14.463 billion at December 31, 2025. Short-term debt increased to $2.475 billion from $999 million, while…
• Revenue Performance and MixImportance 54 · Surprise 40
  Q3 2026 revenue increased 12% year over year to $12.874 billion from $11.510 billion, including $1.057 billion of subscription-revenue growth and $256 million of advertising-revenue growth. Nine-month revenue increased…
• Brazil Tax AssessmentsImportance 52 · Surprise 42
  Netflix incurred $619 million of non-income tax expense in Brazil in the third quarter of 2025, which reduced the comparable-period cost base. During the nine months ended September 30, 2026, the company made $729…
• Advertising Revenue ExpansionImportance 52 · Surprise 42
  Advertising revenue increased by $256 million year over year in the third quarter of 2026 and by $864 million for the first nine months. Netflix continued expanding personnel supporting advertising sales, with sales…
• FX / Currency ImpactImportance 49 · Surprise 6
  Netflix uses foreign-exchange derivatives to reduce earnings and cash-flow volatility from currency fluctuations in its ongoing operations. At September 30, 2026, the company had $22.7 billion of foreign-exchange…
• Acquisitions and PartnershipsImportance 47 · Surprise 60
  Netflix completed a business-combination acquisition in March 2026 for approximately $586 million of cash consideration, consistent with the acquisition cash outflow reported in investing activities. Netflix’s proposed…
• Operating Expense TrendsImportance 41 · Surprise 22
  Nine-month sales and marketing expense increased $315 million to $2.503 billion, including $196 million of additional marketing expense and $137 million of higher personnel costs. Q3 sales and marketing expense…
• Interest Rate ExposureImportance 37 · Surprise 6
  Netflix uses interest-rate swap agreements to hedge changes in the fair value of fixed-rate debt attributable to benchmark interest-rate movements, although the hedges do not eliminate all exposure. At September 30,…
• Products and TechnologyImportance 35 · Surprise 48
  Netflix operates its own Open Connect content delivery network to efficiently stream a high volume of programming globally. Streaming delivery costs include Open Connect equipment, personnel and third-party cloud…
• New Accounting StandardsImportance 22 · Surprise 42
  FASB ASU 2024-03 will require additional interim and annual disaggregation disclosures for specific income-statement expense categories. The standard is effective for fiscal years beginning after December 15, 2026, and…

Revenue by Geography (in thousands)