Aureus
AExcellent

Netflix, Inc.(NFLX)

A

Financial data as of Dec 31, 2025Improving · Communication Services

FCF Margin20.9%Free Cash Flow / Revenue
Cash Conversion92.4%Operating CF / Net Income
Free Cash Flow$9.5B
Revenue$45.2B
Net Cash-$5.4BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio1.19Adequate short-term liquidity
YoY FCF Growth+35.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (20.9%, 1.5x)
→
+1Strong YoY FCF growth (35.8% YoY)
→
+1Very low debt-to-FCF ratio (1.5x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (20.9%)
  • Very low debt relative to cash flow (1.5x)
  • Strong YoY FCF growth (+35.8%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Net debt position ($5.4B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin20.9%
Net Margin24.3%
Operating CF Margin22.5%
CapEx Ratio1.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$5.4BNet debt position
Debt / FCF1.5xManageable debt load
Current Ratio1.19Adequate liquidity
Debt / Equity0.54Low leverage

Quarterly FCF Trend

+35.8% YoYImproving (+35.8%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameNetflix, Inc.
SectorCommunication Services
Free Cash Flow$9.5B
Revenue$45.2B
Net Income$11.0B
Operating Cash Flow$10.1B
Capital Expenditure$688.2M
FCF Margin20.9%
Cash Conversion Rate92.4%
Net Margin24.3%
Total Debt$14.5B
Total Cash$9.0B
Net Cash-$5.4B
Current Ratio1.19
Debt / Equity0.54
Debt / FCF1.5x
YoY FCF Growth+35.8%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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