Profitability improved (30% op, 28% net margin, 48% ROE). Debt is modest (~0.5x equity), revenue is up 18.6%, and the 25x P/E is low. No dividend; buybacks.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: Company filings · TradingView · S&P Global (margins, debt, liquidity, P/B are TTM). Split-adjusted., as of 2026-06-18
With 325M+ paid members (Q4 2025), Netflix is the #1 global subscription streamer. Cumulative content spending, its in-house recommendation algorithm, and simultaneous service in 190+ countries create economies of scale. The ad-supported tier launched in 2022 has grown to 190M monthly active viewers (Nov 2025), and the password-sharing crackdown that began the same year lifted conversion to paid plans. Spreading content costs across a large subscriber base lowers per-member production expense (sources: company IR · earnings calls).
| Global subscriber scale | 325M+ paid members (Q4 2025). Simultaneous service in 190+ countries drives economies of scale. |
| Content and recommendation data | Large original-content investment plus viewing-data-driven recommendations manage churn and production efficiency. |
| Ad-tier expansion | Launched in 2022. Now 190M monthly active viewers (2025-11), forming a new revenue stream. |
| Password-sharing crackdown | Rolled out in 2022-23, converting free viewers to paid and lifting both subscribers and ARPU. |
Revenue grew steadily at a 9-year CAGR of +19.9% (FY2016 $8.83B → FY2025 $45.18B), and operating margin rose from 4.3% (FY2016) to 29.5% (FY2025). Margin dipped briefly during the 2022 subscriber decline (FY2021 20.9% → FY2022 17.8%) but recovered to 26.7% in FY2024 and 29.5% in FY2025 after the ad tier and sharing crackdown. Net income grew from $187M (FY2016) to $10.98B (FY2025). EPS, P/E, and price are consistently split-adjusted (diluted) for the November 2025 10-for-1 split (sources: SEC EDGAR 10-K · macrotrends · stockanalysis · company IR).
| Year | Revenue (B$) | Op. Income (B$) | EPS ($) | P/E (x) | ROE (%) | Op. Margin (%) |
|---|---|---|---|---|---|---|
| 2016 | 8.83 | 0.38 | 0.043 | 287.9 | 7.6 | 4.3 |
| 2017 | 11.69 | 0.84 | 0.125 | 153.6 | 17.9 | 7.2 |
| 2018 | 15.79 | 1.61 | 0.268 | 99.9 | 27.5 | 10.2 |
| 2019 | 20.16 | 2.6 | 0.413 | 78.4 | 29.1 | 12.9 |
| 2020 | 25 | 4.59 | 0.608 | 88.9 | 29.6 | 18.3 |
| 2021 | 29.7 | 6.2 | 1.124 | 53.6 | 32.3 | 20.9 |
| 2022 | 31.62 | 5.63 | 0.995 | 29.6 | 21.6 | 17.8 |
| 2023 | 33.72 | 6.95 | 1.203 | 40.5 | 26.3 | 20.6 |
| 2024 | 39 | 10.42 | 1.983 | 44.9 | 35.2 | 26.7 |
| 2025 | 45.18 | 13.33 | 2.53 | 37.1 | 41.3 | 29.5 |
Quarterly operating income YoY growth:
9-Year CAGR: Revenue +19.9% · Operating Income +48.1% · Net Income +57.3% · EPS +57.3%
Sources: SEC EDGAR (10-K) · macrotrends · stockanalysis · company IR. Revenue and operating income are on a fiscal-year (December) GAAP basis. EPS is diluted. The 10-for-1 split of November 17, 2025 is applied consistently across all EPS, P/E, and price figures (pre-split FY2024 diluted EPS $19.83 → split-adjusted $1.983). ROE is net income ÷ average equity (split-independent); 2021-25 from macrotrends, 2016-20 computed on 10-K equity. P/E is fiscal year-end price ÷ diluted EPS, with the same ratio after split adjustment.
The peer group (GOOGL, META, AMZN) is all Big Tech but with different business models. NFLX's 30.3% operating margin is below META (~42%), close to GOOGL (~34%), and above AMZN (~11%). Its +18.6% revenue growth is mid-pack, and its 48.5% ROE reflects buybacks and high capital efficiency. The trailing 25x P/E is on the low side versus ad- and commerce-heavy Big Tech (P/E, ROE, margins = TTM · sources: TradingView · company IR).
| Metric | ★ NFLX | GOOGL | META |
|---|---|---|---|
| P/E (TTM) | 25.0 | 28.8 | 27.5 |
| ROE | 48.5% | 38.9% | 37.0% |
| Operating Margin | 30.3% | 33.6% | 42.0% |
| Revenue YoY Growth | +18.6% | +22% | +20% |
P/E, ROE, operating margin = TTM; revenue growth = TTM YoY · sources: TradingView · company IR, as of 2026-06-18. Different business models (streaming vs. search, social, commerce) limit direct comparison.
US · S&P 50 category
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