Common-Size Income Statement
Quarterly Data
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- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Price to Earnings (P/E) since 2005
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Netflix Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Revenue and Gross Profit Trends
- Revenues remained constant as a base of 100% throughout the observed periods. The cost of revenues fluctuated significantly, ranging from a low of approximately -49.92% to a high near -68.82%. This volatility in cost directly affected gross profit margins, which varied widely between about 31.18% and 51.93%. Notably, gross profit displayed periodic dips during certain quarters, particularly in late 2020 and late 2022, indicating pressure on cost efficiency during those times. However, there is also a clear pattern of recovery and improvement in gross margins after these declines.
- Operating Expenses
- Operating expenses measured by sales and marketing, technology and development, and general and administrative costs showed moderately stable trends relative to revenue but with some fluctuations. Sales and marketing expenses fluctuated mostly between about -6.44% and -11.48%, peaking in quarters with lower gross profit margins. Technology and development expenses remained relatively stable in the range of approximately -7.05% to -8.99%, showing a slight upward pressure in some periods, particularly during 2020-2022. General and administrative expenses stayed within a narrow range from about -3.98% to -5.6%, with some small increases coinciding with periods where operating income declined.
- Profitability Metrics
- Operating income as a percentage of revenue showed considerable variability, with values between 7.0% and 34.07%. Peaks in operating income corresponded with periods of higher gross profit margins and controlled operating expenses. Noticeably, operating income dropped sharply during late 2020 and late 2022 quarters, aligning with increases in the cost of revenues and operating expenses. Despite these fluctuations, the overall trend suggests recovery and resilience in profitability after downturns.
- Interest and Other Income/Expense
- Interest expense consistently declined as a percentage of revenue over time, moving from around -3.19% in early 2020 to approximately -1.52% by late 2025, indicating an improving cost of debt or reduced debt levels. Other income (expense) and interest and other income (expense) exhibited significant volatility, at times contributing positively and at other times negatively to pre-tax income. Notably, some large negative impacts were observed during late 2020 and late 2022, consistent with lower overall profitability during those quarters.
- Income Before and After Taxes
- Income before income taxes mirrored the trends in operating income, fluctuating between roughly 0.5% and 32.78%. The most notable declines occurred in late 2020 and late 2022, synchronous with the operating margin drops. Provision for income taxes showed variability in both positive and negative directions, with no consistent increasing or decreasing trend, suggesting fluctuations in effective tax rates or tax strategies. Net income followed similar trends to pre-tax income but was generally lower due to tax effects, ranging from about 0.7% to 28.21%. The pattern of rising net income after periods of decline illustrates an ability to recover profitability.
- Summary of Key Insights
- The financial performance exhibits a cyclical pattern with recurring quarterly fluctuations in cost and profitability metrics. Cost of revenues and operating expenses periodically increased, resulting in dips in gross profit and operating income, particularly noticeable in late 2020 and late 2022. Despite these dips, the company demonstrated a capacity to regain profitability as seen in the subsequent quarters. The gradual decline in interest expense relative to revenues signals improved financial leverage or reduced borrowing costs. Tax provision volatility indicates complexity in tax situations affecting net profitability. Overall, profitability remains robust but subject to periodic margin pressures primarily related to cost management and expense control.