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, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	10,981,201)	8,711,631)	5,407,990)	4,491,924)	5,116,228)
Additions to content assets	(17,096,617)	(16,223,617)	(12,554,703)	(16,839,038)	(17,702,202)
Change in content liabilities	(610,838)	(779,135)	(585,602)	179,310)	232,898)
Amortization of content assets	16,422,166)	15,301,517)	14,197,437)	14,026,132)	12,230,367)
Depreciation and amortization of property, equipment and intangibles	333,389)	328,914)	356,947)	336,682)	208,412)
Stock-based compensation expense	368,449)	272,588)	339,368)	575,452)	403,220)
Foreign currency remeasurement (gain) loss on debt	72,348)	(121,539)	176,296)	(353,111)	(430,661)
Other non-cash items	577,451)	494,778)	512,075)	533,543)	376,777)
Deferred income taxes	(442,056)	(590,698)	(459,359)	(166,550)	199,548)
Other current assets	(790,661)	22,180)	(181,003)	(353,834)	(369,681)
Accounts payable	(8,039)	121,353)	93,502)	(158,543)	145,115)
Accrued expenses and other liabilities	881,218)	191,899)	103,565)	(55,513)	180,338)
Deferred revenue	254,917)	77,844)	178,708)	27,356)	91,350)
Other non-current assets and liabilities	(793,655)	(446,351)	(310,920)	(217,553)	(289,099)
Changes in operating assets and liabilities	(456,220)	(33,075)	(116,148)	(758,087)	(241,977)
Adjustments to reconcile net income to net cash provided by operating activities	(831,928)	(1,350,267)	1,866,311)	(2,465,667)	(4,723,618)
Net cash provided by operating activities	10,149,273)	7,361,364)	7,274,301)	2,026,257)	392,610)
Purchases of property and equipment	(688,220)	(439,538)	(348,552)	(407,729)	(524,585)
Change in other assets	—)	—)	—)	—)	(26,919)
Acquisitions	(17,194)	—)	—)	(757,387)	(788,349)
Purchases of investments	(169,965)	(1,742,246)	(504,862)	(911,276)	—)
Proceeds from maturities and sales of investments	1,917,067)	—)	1,395,165)	—)	—)
Net cash (used in) provided by investing activities	1,041,688)	(2,181,784)	541,751)	(2,076,392)	(1,339,853)
Proceeds from issuance of debt	—)	1,794,460)	—)	—)	—)
Repayments of debt	(1,833,450)	(400,000)	—)	(700,000)	(500,000)
Proceeds from issuance of common stock	666,965)	832,887)	169,990)	35,746)	174,414)
Repurchases of common stock	(9,127,167)	(6,263,746)	(6,045,347)	—)	(600,022)
Taxes paid related to net share settlement of equity awards	(46,165)	(8,285)	—)	—)	(224,168)
Other financing activities	(5,806)	(29,743)	(75,446)	—)	—)
Net cash used in financing activities	(10,345,623)	(4,074,427)	(5,950,803)	(664,254)	(1,149,776)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	386,519)	(416,331)	82,684)	(170,140)	(86,740)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,231,857)	688,822)	1,947,933)	(884,529)	(2,183,759)
Cash, cash equivalents and restricted cash, beginning of year	7,807,337)	7,118,515)	5,170,582)	6,055,111)	8,238,870)
Cash, cash equivalents and restricted cash, end of year	9,039,194)	7,807,337)	7,118,515)	5,170,582)	6,055,111)

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 cash flow statement reveals a dynamic period for the company, marked by significant fluctuations in operating, investing, and financing activities over the five-year span. Net income demonstrates a generally positive trend, increasing substantially from 2021 to 2025, although with a dip in 2022. However, the relationship between net income and net cash provided by operating activities is complex, heavily influenced by non-cash adjustments, particularly additions to content assets and changes in content liabilities.

Operating Activities: Net cash provided by operating activities exhibits considerable volatility. While starting at US$392.610 thousand in 2021 and peaking at US$7,274.301 thousand in 2023, it experienced a decline in 2024 and 2025. This fluctuation is largely attributable to substantial adjustments to reconcile net income, specifically the significant and consistently negative additions to content assets. The change in content liabilities also plays a role, shifting from positive contributions in 2021 and 2022 to negative impacts in subsequent years. Deferred income taxes show a consistent negative impact, increasing in magnitude over time.
Investing Activities: Investing activities consistently represent a net cash outflow, although the magnitude varies. Purchases of property and equipment remain relatively stable. A significant outflow from purchases of investments is observed in 2022 and 2023, followed by substantial inflows from the maturities and sales of investments in 2023 and 2025. Acquisitions contributed to cash outflows in 2021, 2022, and 2025. Overall, net cash used in investing activities decreased in 2023 before increasing again in 2024, and then decreasing in 2025.
Financing Activities: Financing activities consistently resulted in net cash outflows throughout the period. Repurchases of common stock represent the largest drain on cash, increasing substantially from 2021 to 2025. Repayments of debt also contribute to cash outflows. Proceeds from the issuance of common stock and debt provide some offsetting inflows, but are insufficient to counteract the outflows from stock repurchases and debt repayments. The impact of taxes paid related to net share settlement of equity awards is also a consistent, though smaller, outflow.
Cash Position: Despite the fluctuations in operating, investing, and financing activities, the company’s cash, cash equivalents, and restricted cash demonstrate a general upward trend, increasing from US$8,238.870 thousand in 2021 to US$9,039.194 thousand in 2025. However, there was a decrease in 2022 and 2023. The net increase (decrease) in cash mirrors the volatility of the underlying cash flow components, with a significant increase in 2023 and a more moderate increase in 2025.

In summary, the company’s cash flow statement reflects a business model requiring substantial investment in content, as evidenced by the large additions to content assets. While net income has grown, the conversion of that income into operating cash flow is significantly impacted by these content-related investments. Financing activities are heavily geared towards returning capital to shareholders through stock repurchases, contributing to consistent net cash outflows. The overall cash position has improved, but remains sensitive to the dynamics of content investment and capital allocation strategies.

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Netflix Inc. (NASDAQ:NFLX)

Cash Flow Statement