AI Takeaway
Netflix delivered a record-breaking fiscal year 2025 with revenue of $45.2B (+15.9% YoY), operating income surging 27.9% to $13.3B, and net income climbing 26.1% to $11.0B, reflecting strong margin expansion and robust cash generation.
Revenue
$45.18B
++15.85% YoY
EPS (Basic)
$2.58
++27.09% YoY
Operating Income
$13.33B
++27.92% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Netflix grew total revenue by 15.9% YoY to $45.2B in FY2025, up from $39.0B in FY2024. This growth reflects continued success in monetizing its subscriber base through pricing actions and the expansion of its advertising-supported tier.
Source: Source: 10-K Income Statement, Financial Data
Operating margin expanded approximately 278 basis points to 29.5% in FY2025 from 26.7% in FY2024, as revenue growth outpaced cost of revenue growth (15.9% vs. 10.6%), demonstrating improving content cost efficiency and operating leverage.
Source: Source: 10-K Income Statement & Key Ratios, Financial Data
Operating cash flow surged 37.9% YoY to $10.1B, and investing cash flow turned positive at $1.0B (vs. -$2.2B in FY2024), signaling a significant improvement in the company's ability to generate and retain cash from its core operations.
Source: Source: 10-K Cash Flow Statement, Financial Data
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Upgrade to unlockWhile cost of revenue grew at a slower pace (10.6%) than revenue (15.9%) in FY2025, content spending remains Netflix's largest cost driver. Intensifying competition from Disney+, Amazon Prime Video, and Apple TV+ could force higher content investment, compressing gross margins in future periods.
Source: Source: 10-K Income Statement, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.56 versus the $0.56 analyst consensus — a -0.5% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $45.18B | $39B | +15.85% |
Cost of Revenue | $23.28B | $21.04B | +10.63% |
Operating Income | $13.33B | $10.42B | +27.92% |
Net Income | $10.98B | $8.71B | +26.05% |
EPS (Basic) | $2.58 | $2.03 | +27.09% |
EPS (Diluted) | $2.53 | $1.98 | +27.78% |
R&D Expense | $3.39B | $2.93B | +15.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $55.6B | $53.63B | +3.67% |
Current Assets | $13.02B | $13.1B | -0.61% |
Total Liabilities | $28.98B | $28.89B | +0.33% |
Current Liabilities | $10.98B | $10.76B | +2.10% |
Stockholders' Equity | $26.62B | $24.74B | +7.57% |
Cash & Equivalents | $9.03B | $7.8B | +15.75% |
Long-Term Debt | $13.46B | $13.8B | -2.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $10.15B | $7.36B | +37.87% |
Investing Cash Flow | $1.04B | $-2.18B | +147.74% |
Financing Cash Flow | $-10.35B | $-4.07B | -153.92% |
Share Buybacks | $9.13B | $6.26B | +45.71% |
D&A | $333.39M | $328.91M | +1.36% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 29.5% | 26.7% | +2.78% |
Net Margin | 24.3% | — | — |
ROE | 41.3% | — | — |
ROA | 19.8% | — | — |
Current Ratio | $1.186 | — | — |
Debt to Equity | $1.089 | — | — |
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Netflix had an outstanding FY2025, with revenue growing 15.9% to $45.2B and net income rising 26.1% to $11.0B. Operating margin expanded to 29.5% from 26.7%, and operating cash flow surged 37.9% to $10.1B, marking one of the company's strongest financial years on record.
The key takeaways from Netflix's FY2025 10-K are strong revenue growth of 15.9% to $45.2B, significant margin expansion with operating margin reaching 29.5%, and record cash generation of $10.1B in operating cash flow. Netflix also returned $9.1B to shareholders through buybacks, reflecting high management confidence in the business.
Netflix reported diluted EPS of $2.53 in FY2025, up 27.8% from $1.98 in FY2024. The growth in EPS outpaced net income growth of 26.1%, partly due to the reduction in share count from $9.1B in share repurchases during the year.
Based on the financial data, key risks for Netflix include intense competition potentially driving up content costs, concentration risk in its subscription revenue model, and leverage risk from aggressive share buybacks totaling $9.1B while carrying $13.5B in long-term debt. International currency exposure also poses a risk to reported revenue growth.
Netflix appears in strong financial health as of FY2025, with $9.0B in cash, a current ratio of 1.19, and ROE of 41.3%. The company generated $10.1B in operating cash flow, well exceeding its $13.5B long-term debt load, and its net margin of 24.3% is among the highest in the streaming industry.