Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Netflix Inc., consolidated income statement (quarterly data)
US$ in thousands
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
Revenue demonstrates a consistent upward trajectory over the analyzed period, growing from 7.16 billion USD in March 2021 to 12.56 billion USD by June 2026. The growth pattern is characterized by steady incremental gains between 2021 and 2022, followed by a more pronounced acceleration starting in 2023. This sustained increase in the top line indicates strong market expansion and pricing power.
- Gross Profitability and Cost Structure
- Gross profit expanded from 3.29 billion USD in the first quarter of 2021 to 6.52 billion USD by the second quarter of 2026. While costs of revenues generally scaled with revenue growth, periodic spikes in costs are observable, particularly in the fourth quarters of 2021 and 2022, which temporarily compressed gross margins. However, the overall trend shows an improvement in the ability to convert revenue into gross profit, with the most significant gains occurring from March 2024 onwards.
- Operating Expense Analysis
- Technology and development expenses show a steady, linear increase, rising from approximately 525 million USD to over 1 billion USD, reflecting continuous investment in platform infrastructure. Sales and marketing expenditures exhibit higher volatility, often peaking in the fourth quarter of each year, suggesting a cyclical approach to user acquisition and promotional activity. General and administrative costs remained relatively stable for several years before experiencing a moderate increase in 2025 and 2026.
- Operating Income and Operational Efficiency
- Operating income displays a strong long-term growth trend, increasing from 1.96 billion USD in March 2021 to 4.19 billion USD in June 2026. Despite temporary declines in late 2021 and late 2022, the operational margin has strengthened significantly. This suggests that revenue growth is outpacing the growth of operating expenses, leading to improved operational leverage.
- Net Income and Non-Operating Impacts
- Net income generally mirrors the growth of operating income, with a notable rise from 1.71 billion USD in early 2021 to 3.40 billion USD by mid-2026. A significant anomaly is observed in the first quarter of 2026, where net income spiked to 5.28 billion USD. This outlier is attributed to a substantial increase in other income, totaling 2.59 billion USD for that period, rather than organic operational growth.
The overall financial trajectory is one of scaling profitability. The company has successfully transitioned from a phase of steady growth to one of accelerated revenue and income expansion, while maintaining a disciplined approach to general administrative overhead despite increasing investments in technology.
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