Common-Size Income Statement
Quarterly Data
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity 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: 2025-06-30), 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 Cost of Revenues
- Revenues remained constant as the base metric at 100% throughout all quarters analyzed. The cost of revenues as a percentage of revenues fluctuated significantly, showing a general pattern of decrease from early 2020 to mid-2025. Initially moving from -62.41% in March 2020 down to around -48.07% by June 2025, indicating an improvement in cost efficiency relative to revenue. However, there were periods of increase, notably in late 2020 and late 2022, where the cost of revenues spiked to more than -67%, which suggests episodic higher costs or investments in content or delivery.
- Gross Profit
- Gross profit as a percentage of revenues closely mirrored the inverse of the cost of revenues trend, starting at 37.59% in March 2020 and rising to a peak of over 51% by June 2025. This upward trajectory signifies an overall improvement in profitability before operating expenses, despite some volatility, particularly in Q4 2020 and Q4 2022, when gross profit dipped corresponding to spikes in cost of revenues.
- Operating Expenses
- Operating expenses, including sales and marketing, technology and development, and general and administrative costs, fluctuated moderately as a percentage of revenues. Sales and marketing expenses generally remained between -6.44% and -11.48%, with spikes toward the end of calendar years, possibly due to seasonal campaigns. Technology and development costs showed a slight increase over time, moving from around -7.87% in early 2020 to about -7.44% by mid-2025, indicating steady investment in platform and technology growth. General and administrative expenses remained relatively stable with slight fluctuations generally within the -3.98% to -5.6% range.
- Operating Income
- Operating income as a percentage of revenues exhibited considerable variability, rising from 16.61% in Q1 2020 to peaks above 34% by mid-2025. Notable decreases occurred during Q4 2020 and Q4 2022, falling below 10%, coinciding with increases in cost of revenues and operating expenses. The overall trend points to improving operating profitability, supported by enhanced gross margins and controlled operating costs.
- Interest and Other Income/Expense
- Interest expense consistently decreased over the period, from around -3.19% in early 2020 down to around -1.65% by mid-2025, reflecting potentially lower debt levels or improved financing terms. The combined categories of interest and other income/expense demonstrated volatility, with occasional negative spikes and positive recoveries. Other income (expense) fluctuated similarly, with some quarters showing notable losses, especially in Q4 2022 and several early quarters, affecting income before taxes.
- Income Before Income Taxes and Net Income
- Income before income taxes followed a pattern broadly aligned with operating income but exhibited more pronounced swings, with reductions during some quarters where other income or expenses were less favorable. After accounting for provision for income taxes—which remained generally low and sometimes positive as a percentage of revenue—net income showed a strong upward trend from approximately 12.29% in early 2020 to over 28% by mid-2025. Low tax provisions and improved operational performance contributed to higher net profitability margins over time.
- Summary of Trends
- Overall, the data presents a company improving its cost efficiency, particularly in reducing the cost of revenues and interest expenses, leading to stronger gross profit and operating income margins. Operating expenses remained relatively stable with some expected seasonal fluctuations. Despite volatility in other income and expenses, net income margins improved markedly, indicating effective cost management and profitability enhancement strategies over the observed period.