Q2 2026 revenue reached $12.6B, up 13% YoY (12% at constant currency), driven by membership growth, price increases, and increased advertising revenue. Operating margin declined 70 bps to 33.4% as technology and development expenses rose 22% YoY ($142M higher personnel costs) and sales and marketing rose 16% (including ~$47M higher personnel costs tied to advertising sales headcount growth). LATAM (+21%) and APAC (+16%) led regional revenue growth.
Content investment accelerated: Q2 content additions totaled $4.9B (vs. $3.8B in Q2 2025), and total content obligations rose to $25.1B from $24.0B at year-end, with $19.6B not yet on the balance sheet. Content in production grew to $10.3B from $9.2B at December 31, 2025, and the company estimates an additional $1–4B in unrecognized obligations for future titles over the next three years.
On February 27, 2026 (Q1), WBD terminated the Amended and Restated Merger Agreement (originally signed December 2025) to pursue a merger with Paramount Skydance; PSKY paid Netflix a $2.8B termination fee recorded in Q1 interest and other income. All WBD-related financing arrangements were terminated concurrently, and approximately $85M of debt issuance cost amortization from those arrangements flowed through H1 interest expense. A separate ~$587M cash acquisition was completed in March 2026 (Q1).
In April 2026, the Board authorized an additional $25B share repurchase program. During Q2, Netflix repurchased 52.9M shares for $4.7B (average prices ranged from $79–$97/share across the quarter); H1 total repurchases were 66.4M shares for $5.9B. Approximately $27.1B remains available under the program as of June 30, 2026.
Netflix entered into new interest rate swap agreements with an aggregate notional of $1.4B during Q2 2026, designated as fair value hedges on portions of its 4.900% and 5.400% Senior Notes (maturing 2034 and 2054), effectively converting fixed-rate debt to SOFR-based floating-rate exposure. A 1-percentage-point increase in SOFR would add roughly $14M to annual interest expense. No such swaps were outstanding as of December 31, 2025.
(Filed on April 17, 2026)
+16.2%
51.9%
$12.3B
On February 27, 2026, Warner Bros. Discovery terminated the amended and restated merger agreement (signed December 4, 2025, amended January 19, 2026) under which Netflix would have acquired WBD's streaming and studios businesses, including HBO Max, HBO, and its film and television studios. WBD concurrently entered a merger agreement with Paramount Skydance Corporation, which paid Netflix a $2.8 billion termination fee recorded in interest and other income for Q1 2026. All related financing arrangements were terminated; no amounts had been borrowed and associated expenses were not material.
In March 2026, Netflix completed a business combination acquisition for approximately $587 million in cash. The target company is not identified in the filing.
Q1 2026 revenues were $12.25 billion, up 16% year-over-year (14% on a constant-currency basis), attributed to membership growth, price increases, and increased advertising revenue. Operating margin expanded to 32.3% (from 31.7% a year earlier), with operating income of $3.96 billion. Regional revenue growth: UCAN +14%, EMEA +17%, LATAM +19%, APAC +20%. Content amortization rose to $4.22 billion (from $3.82 billion).
Additions to content assets were $4.85 billion in Q1 2026 (vs. $3.55 billion in Q1 2025). Total content obligations stood at $24.1 billion as of March 31, 2026, of which $11.8 billion was due within 12 months; management estimated an additional $1–4 billion in unknown future-title obligations over the next three years, with the vast majority expected after 12 months.
Netflix repurchased 13,497,098 shares for $1.3 billion during Q1 2026 (all in March; average price $94.14), leaving $6.8 billion available under its repurchase authorization. G&A expenses increased 43% year-over-year, partly due to roughly $88 million in higher third-party costs including legal fees and WBD transaction-related costs. The company also recorded $729 million in non-routine cash payments related to non-income tax assessments in Brazil for prior periods.
(Filed on January 23, 2026)
+17.6%
45.9%
$9B
Q4: On December 4, 2025, Netflix entered into a definitive merger agreement with Warner Bros. Discovery to acquire WBD's streaming and studios businesses, including its film and television studios, HBO Max, and HBO, at $27.75 per WBD share for a total equity value of approximately $72.0 billion and enterprise value of approximately $82.7 billion. WBD will separate its Global Linear Networks business (Discovery Global) into a new publicly-traded company before closing. Netflix expects the transaction to close in 12-18 months from December 4, 2025, subject to regulatory approvals, WBD stockholder approval, and other customary conditions. The agreement was amended and restated on January 19, 2026 (subsequent event).
Q4: To finance the WBD transaction, Netflix entered on December 4, 2025 into a $59 billion senior unsecured bridge term loan commitment. On December 19, 2025, it replaced a portion of that commitment with a $5 billion senior unsecured revolving credit facility and a $20 billion senior unsecured delayed draw term loan facility (split into 2-year and 3-year tranches), reducing the bridge to $34 billion. No amounts had been drawn as of December 31, 2025. Subsequent to year-end (January 19, 2026), incremental commitments increased the bridge facility to $42.2 billion.
Q4: On November 14, 2025, Netflix completed a 10-for-1 forward stock split of its common stock (record date November 10, 2025); the board simultaneously increased authorized common stock from 4.99 billion to 49.9 billion shares. During Q4, the company repurchased 18,882,245 shares under its buyback program (5.58M in October, 9.30M in November, 3.99M in December), leaving approximately $8.0 billion of authorization remaining as of December 31, 2025.
Annual context (not Q4-specific): Netflix stated that during 2025 it discontinued the public reporting of membership metrics (average paying memberships and average monthly revenue per paying membership), shifting to revenue and operating margin as its primary financial performance metrics. Full-year 2025 revenue was $45.18 billion (up 16% y/y; 17% on constant currency), operating income was $13.33 billion at a 29.5% operating margin (up 2.8 pp), and net income was $10.98 billion. Regional streaming revenue growth: UCAN +15%, EMEA +17%, LATAM +11%, APAC +21%.
Annual context (charge recognized in Q3 2025, not Q4): Netflix recorded a cumulative ~$619 million non-income tax charge in operating expenses in the third quarter of 2025 related to Brazilian tax authority assessments, after developments in a related taxpayer's judicial proceedings made a loss probable. The company stated it continues to accrue incremental non-income taxes and expects to pay approximately $700 million in related deposits; it does not expect these matters to materially impact future results. Separately, full-year 2025 content amortization was $16.42 billion, and total content obligations stood at $24.0 billion as of December 31, 2025.
(Filed on October 22, 2025)
+17.2%
46.4%
$9.3B
Q3 2025 revenue was $11.51 billion, up 17% year-over-year (17% on a constant-currency basis), driven by membership growth, price increases, and increased advertising revenue; operating margin declined 140 basis points to 28.2% (from 29.6% in Q3 2024) as cost of revenues and sales & marketing grew faster than revenue; net income rose 8% to $2.55 billion. The company discontinued quarterly streaming membership metrics reporting effective Q1 2025, citing revenue and operating margin as its primary financial metrics.
Netflix recognized a $619 million non-income tax charge in Q3 2025 (recorded in other cost of revenues) related to Brazilian tax authority assessments, after concluding it is probable a loss will be incurred based on developments in another taxpayer's judicial proceedings. The company expects to pay $619 million in deposits and had already paid approximately $200 million in tax deposits for certain direct taxes during the nine months ended September 30, 2025. Management stated it does not expect Brazilian non-income taxes to materially impact future results.
During the nine months ended September 30, 2025, Netflix repaid three debt tranches at maturity: $800 million 5.875% notes (February 2025), €470 million 3.000% notes, and $500 million 3.625% notes (both June 2025), reducing total debt from $15.6 billion to $14.5 billion. In May 2025, the company established a $3 billion commercial paper program; no amounts were outstanding under either the CP program or the $3 billion revolving credit facility as of quarter-end.
Total content obligations stood at $20.9 billion as of September 30, 2025 (down from $23.2 billion at year-end 2024), of which $15.2 billion remained off-balance-sheet pending recognition. Produced content in production increased to $9.8 billion from $9.3 billion at December 31, 2024, and in development/pre-production rose to $736 million from $561 million. Netflix estimates unknown future title obligations at approximately $1 billion to $4 billion over the next three years, with the vast majority payable after twelve months.
Sales and marketing expense grew 22% to $786 million in Q3, with a $104 million increase in marketing spend and a $41 million increase in personnel costs attributed to growth in advertising sales headcount, reflecting the company's expanding advertising business.
