Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Netflix Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Current content liabilities	4,084,854)	4,393,681)	4,466,470)	4,480,150)	4,292,967)
Accounts payable	900,612)	899,909)	747,412)	671,513)	837,483)
Accrued expenses and other liabilities	3,220,869)	2,156,544)	1,803,960)	1,514,650)	1,449,351)
Deferred revenue	1,775,730)	1,520,813)	1,442,969)	1,264,661)	1,209,342)
Short-term debt	998,865)	1,784,453)	399,844)	—)	699,823)
Current liabilities	10,980,930)	10,755,400)	8,860,655)	7,930,974)	8,488,966)
Non-current content liabilities	1,579,476)	1,780,806)	2,578,173)	3,081,277)	3,094,213)
Long-term debt	13,463,971)	13,798,351)	14,143,417)	14,353,076)	14,693,072)
Other non-current liabilities	2,957,128)	2,552,250)	2,561,434)	2,452,040)	2,459,164)
Non-current liabilities	18,000,575)	18,131,407)	19,283,024)	19,886,393)	20,246,449)
Total liabilities	28,981,505)	28,886,807)	28,143,679)	27,817,367)	28,735,415)
Preferred stock, $0.001 par value; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.001 par value	7,286,410)	6,252,126)	5,145,172)	4,637,601)	4,024,561)
Treasury stock at cost	(22,372,658)	(13,171,638)	(6,922,200)	(824,190)	(824,190)
Accumulated other comprehensive income (loss)	(580,382)	362,162)	(223,945)	(217,306)	(40,495)
Retained earnings	42,282,118)	31,300,917)	22,589,286)	17,181,296)	12,689,372)
Stockholders’ equity	26,615,488)	24,743,567)	20,588,313)	20,777,401)	15,849,248)
Total liabilities and stockholders’ equity	55,596,993)	53,630,374)	48,731,992)	48,594,768)	44,584,663)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The liabilities and stockholders’ equity of the company demonstrate several notable trends over the five-year period. Total liabilities remained relatively stable, fluctuating between approximately US$27.8 billion and US$28.9 billion. Stockholders’ equity exhibited a general upward trend, increasing from US$15.8 billion in 2021 to US$26.6 billion in 2025. Consequently, the company’s capital structure shifted towards greater reliance on equity financing over time.

Current Liabilities: Current liabilities increased from US$8.5 billion in 2021 to US$10.98 billion in 2025. This increase was primarily driven by growth in accrued expenses and other liabilities, which more than doubled over the period, and a significant increase in short-term debt in 2024. While current content liabilities decreased slightly over the period, they remained the largest component of current liabilities. Deferred revenue also showed consistent growth.
Non-Current Liabilities: Non-current liabilities decreased from US$20.2 billion in 2021 to US$18.0 billion in 2025. This decline was largely attributable to a reduction in non-current content liabilities and long-term debt. However, other non-current liabilities increased over the period, partially offsetting these decreases.
Debt Levels: Long-term debt decreased steadily from US$14.7 billion in 2021 to US$13.5 billion in 2025. Short-term debt experienced significant volatility, with a notable increase in 2024 before decreasing again in 2025. Overall, the company reduced its reliance on debt financing, particularly long-term debt.
Stockholders’ Equity Components: Common stock increased substantially from US$4.0 billion in 2021 to US$7.3 billion in 2025, indicating equity issuances. Treasury stock experienced a significant and consistent increase in negative value, suggesting substantial share repurchases, particularly between 2023 and 2025. Retained earnings demonstrated strong growth, rising from US$12.7 billion in 2021 to US$42.3 billion in 2025, reflecting accumulated profits. Accumulated other comprehensive income (loss) fluctuated, ending the period with a loss.

The company’s overall financial position strengthened over the period, as evidenced by the growth in stockholders’ equity and the relative stability of total liabilities. The significant increase in retained earnings suggests strong profitability, while the share repurchase program indicates a confidence in future prospects and a desire to return capital to shareholders. The fluctuations in short-term debt warrant further investigation to understand the underlying reasons and potential risks.

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Netflix Inc. (NASDAQ:NFLX)

Balance Sheet: Liabilities and Stockholders’ Equity