BID TerminalOpen complete report
Research library Software & Internet

Back of Napkin

Netflix, Inc. NFLX

Three-pass checkedFresh as companies report

Netflix earned $5.28B in the March quarter and $2.8B of it was a break fee from Warner Bros. Discovery for a deal that did not happen.

NFLX · price with moving averages

Daily · 6MWeekly · 3Y
$28$56$84$112$140 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

Netflix sells a monthly subscription to a library of television and film, in more than 190 countries, on ad-free and advertising-supported tiers. It commissions much of what it shows, which is why the cash spent on content and the amount charged against earnings are different numbers.

The economics have inverted over a decade. It once burned cash to build a library; now the library is built and the cash comes out.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

Continue with NFLX

Get the complete Back of Napkin free.

Choose this as your free complete report. No card required.

Read the complete report

More company research

View all research
Netflix, Inc. NFLXNetflix stopped reporting subscriber counts and average revenue per member after the December 2024 quarter, at a record 301.6 million members. Moat Dive Salesforce, Inc. CRMSalesforce just reported its first accelerating quarter in three years, raised the full-year guide, and the stock jumped about 10% overnight, and even after the jump it costs roughly 13 times trailing free cash flow. Back of Napkin Figma, Inc. FIGFigma has accelerated revenue growth three quarters running, 48% in the latest, and the stock has fallen 63% from its post-IPO high anyway, because the sellers are the people who built it. Back of Napkin Spotify Technology S.A. SPOTThe argument over Spotify is no longer whether it can make money, it made a record 33.4% gross margin and €655M of quarterly operating profit, but whether a business now growing by raising prices on 300 million subscribers can keep doing it. Back of Napkin