Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Netflix Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	8,711,631)	5,407,990)	4,491,924)	5,116,228)	2,761,395)
Additions to content assets	(16,223,617)	(12,554,703)	(16,839,038)	(17,702,202)	(11,779,284)
Change in content liabilities	(779,135)	(585,602)	179,310)	232,898)	(757,433)
Amortization of content assets	15,301,517)	14,197,437)	14,026,132)	12,230,367)	10,806,912)
Depreciation and amortization of property, equipment and intangibles	328,914)	356,947)	336,682)	208,412)	115,710)
Stock-based compensation expense	272,588)	339,368)	575,452)	403,220)	415,180)
Foreign currency remeasurement (gain) loss on debt	(121,539)	176,296)	(353,111)	(430,661)	533,278)
Other non-cash items	494,778)	512,075)	533,543)	376,777)	293,126)
Deferred income taxes	(590,698)	(459,359)	(166,550)	199,548)	70,066)
Other current assets	22,180)	(181,003)	(353,834)	(369,681)	(187,623)
Accounts payable	121,353)	93,502)	(158,543)	145,115)	(41,605)
Accrued expenses and other liabilities	191,899)	103,565)	(55,513)	180,338)	198,183)
Deferred revenue	77,844)	178,708)	27,356)	91,350)	193,247)
Other non-current assets and liabilities	(446,351)	(310,920)	(217,553)	(289,099)	(194,075)
Changes in operating assets and liabilities	(33,075)	(116,148)	(758,087)	(241,977)	(31,873)
Adjustments to reconcile net income to net cash provided by operating activities	(1,350,267)	1,866,311)	(2,465,667)	(4,723,618)	(334,318)
Net cash provided by operating activities	7,361,364)	7,274,301)	2,026,257)	392,610)	2,427,077)
Purchases of property and equipment	(439,538)	(348,552)	(407,729)	(524,585)	(497,923)
Change in other assets	—)	—)	—)	(26,919)	(7,431)
Acquisitions	—)	—)	(757,387)	(788,349)	—)
Purchases of short-term investments	(1,742,246)	(504,862)	(911,276)	—)	—)
Proceeds from maturities of investments	—)	1,395,165)	—)	—)	—)
Net cash (used in) provided by investing activities	(2,181,784)	541,751)	(2,076,392)	(1,339,853)	(505,354)
Proceeds from issuance of debt	1,794,460)	—)	—)	—)	1,009,464)
Debt issuance costs	—)	—)	—)	—)	(7,559)
Repayments of debt	(400,000)	—)	(700,000)	(500,000)	—)
Proceeds from issuance of common stock	832,887)	169,990)	35,746)	174,414)	235,406)
Repurchases of common stock	(6,263,746)	(6,045,347)	—)	(600,022)	—)
Taxes paid related to net share settlement of equity awards	(8,285)	—)	—)	(224,168)	—)
Other financing activities	(29,743)	(75,446)	—)	—)	—)
Net cash provided by (used in) financing activities	(4,074,427)	(5,950,803)	(664,254)	(1,149,776)	1,237,311)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(416,331)	82,684)	(170,140)	(86,740)	36,050)
Net increase (decrease) in cash, cash equivalents and restricted cash	688,822)	1,947,933)	(884,529)	(2,183,759)	3,195,084)
Cash, cash equivalents and restricted cash, beginning of year	7,118,515)	5,170,582)	6,055,111)	8,238,870)	5,043,786)
Cash, cash equivalents and restricted cash, end of year	7,807,337)	7,118,515)	5,170,582)	6,055,111)	8,238,870)

Based on: 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), 10-K (reporting date: 2020-12-31).

The analysis of the provided financial data over the five-year period reveals several notable trends and shifts in financial performance and position.

Profitability: Net income shows an overall increasing trend, with a significant rise from 2,761,395 thousand US dollars in 2020 to 8,711,631 thousand US dollars in 2024. Despite a decrease in 2022 compared to 2021, net income recovers and surpasses previous years in subsequent periods, indicating improved profitability or effective cost management.
Content Asset Investment and Amortization: Additions to content assets fluctuate, peaking negatively in 2021 (-17,702,202) and declining to a relatively lower absolute value in 2023 (-12,554,703), but increasing again in 2024 (-16,223,617). Amortization of content assets consistently rises each year, from 10,806,912 to 15,301,517 thousand US dollars, reflecting ongoing amortization of existing content investments and possibly expanding content libraries.
Depreciation and Amortization of Property, Equipment, and Intangibles: Depreciation and amortization expenses for property, equipment, and intangibles increased notably from 115,710 thousand US dollars in 2020 to 356,947 thousand US dollars in 2023, then slightly declined in 2024 to 328,914 thousand US dollars, suggesting changes in asset base or amortization policies.
Operating Expenses and Non-Cash Items: Stock-based compensation exhibits variability, rising sharply in 2022 to 575,452 thousand US dollars before decreasing each subsequent year to 272,588 thousand US dollars. Other non-cash items show a gradual increase from 293,126 to 494,778 thousand US dollars, which may include various adjustments influencing net income but not cash flow.
Currency and Tax Effects: Foreign currency remeasurement gains and losses show volatility, with a substantial gain in 2020 (533,278 thousand US dollars) shifting to losses and gains in subsequent years, reflecting exposure to currency fluctuations. Deferred income taxes shifted from positive adjustments in early years to increasing negative values through 2024, indicating possible tax timing differences or valuation allowances.
Working Capital Changes: Trends in working capital components reflect some fluctuations but generally small changes relative to total assets. For example, accounts payable and accrued expenses show alternating positive and negative movements, which may correspond to operational changes or timing differences in payments and accruals.
Cash Flow from Operating Activities: Operating cash flow has shown variability but an overall positive trend, expanding greatly from 392,610 thousand US dollars in 2021 to 7,361,364 thousand US dollars in 2024, indicating improving cash generation from core operations despite fluctuating net income.
Investing Activities: Investing cash flows highlight significant cash outflows related to content acquisitions and investments, with net cash used in investing activities reaching a peak outflow in 2022 (-2,076,392 thousand US dollars). However, a positive cash inflow is recorded in 2023 (541,751 thousand US dollars) due to proceeds from investment maturities, before resuming cash outflows in 2024 (-2,181,784 thousand US dollars).
Financing Activities: Financing activities reflect various debt issuances and repayments, stock issuances, and significant share repurchases. Notably, there were major share repurchases in 2023 and 2024 exceeding 6 billion US dollars each year, suggesting aggressive return of capital to shareholders. Net cash used in financing activities increased sharply in 2023 and 2024, indicating substantial outflows likely driven by repurchases and debt repayments.
Liquidity and Cash Position: Cash and cash equivalents fluctuate correspondingly, beginning at 5,043,786 thousand US dollars in 2020 and ending at 7,807,337 thousand US dollars in 2024. Despite fluctuations, the overall cash balance increases, supported by strong operating cash flows and financing inflows in some years, offsetting investing outflows. The net increase in cash fluctuates yearly, with a notable decrease in 2021 (-2,183,759 thousand US dollars) and positive increases in 2023 and 2024.

In summary, the company demonstrates strengthening profitability and cash generation over the period, balanced against high investments in content and significant capital returns to shareholders via stock repurchases. Currency and tax factors add complexity to the financial results. The trends in amortization and depreciation reflect ongoing asset consumption, and careful management of working capital contributes to operational cash flow stability. Overall, the financial data suggests an expanding business with strategic investments and shareholder value focus.

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Netflix Inc. (NASDAQ:NFLX)

Cash Flow Statement