Net Profit Margin
since 2005
Calculation
Netflix Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 24.30% | = | 100 | × | 10,981,201) | ÷ | 45,183,036) |
| Dec 31, 2024 | 22.34% | = | 100 | × | 8,711,631) | ÷ | 39,000,966) |
| Dec 31, 2023 | 16.04% | = | 100 | × | 5,407,990) | ÷ | 33,723,297) |
| Dec 31, 2022 | 14.21% | = | 100 | × | 4,491,924) | ÷ | 31,615,550) |
| Dec 31, 2021 | 17.23% | = | 100 | × | 5,116,228) | ÷ | 29,697,844) |
| Dec 31, 2020 | 11.05% | = | 100 | × | 2,761,395) | ÷ | 24,996,056) |
| Dec 31, 2019 | 9.26% | = | 100 | × | 1,866,916) | ÷ | 20,156,447) |
| Dec 31, 2018 | 7.67% | = | 100 | × | 1,211,242) | ÷ | 15,794,341) |
| Dec 31, 2017 | 4.78% | = | 100 | × | 558,929) | ÷ | 11,692,713) |
| Dec 31, 2016 | 2.11% | = | 100 | × | 186,678) | ÷ | 8,830,669) |
| Dec 31, 2015 | 1.81% | = | 100 | × | 122,641) | ÷ | 6,779,511) |
| Dec 31, 2014 | 4.85% | = | 100 | × | 266,799) | ÷ | 5,504,656) |
| Dec 31, 2013 | 2.57% | = | 100 | × | 112,403) | ÷ | 4,374,562) |
| Dec 31, 2012 | 0.48% | = | 100 | × | 17,152) | ÷ | 3,609,282) |
| Dec 31, 2011 | 7.06% | = | 100 | × | 226,126) | ÷ | 3,204,577) |
| Dec 31, 2010 | 7.44% | = | 100 | × | 160,853) | ÷ | 2,162,625) |
| Dec 31, 2009 | 6.94% | = | 100 | × | 115,860) | ÷ | 1,670,269) |
| Dec 31, 2008 | 6.08% | = | 100 | × | 83,026) | ÷ | 1,364,661) |
| Dec 31, 2007 | 5.55% | = | 100 | × | 66,952) | ÷ | 1,205,340) |
| Dec 31, 2006 | 4.92% | = | 100 | × | 49,082) | ÷ | 996,660) |
| Dec 31, 2005 | 6.16% | = | 100 | × | 42,027) | ÷ | 682,213) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The net profit margin exhibited considerable fluctuation over the period from 2005 to 2025. Initially, the margin demonstrated a generally increasing trend, followed by a significant decline, and then a period of substantial growth, culminating in a peak in recent years.
- Early Growth (2005-2010)
- From 2005 to 2010, the net profit margin generally increased, moving from 6.16% to 7.44%. This indicates improving profitability during this period, potentially driven by economies of scale or effective cost management as revenues grew from US$682,213 thousand to US$2,162,625 thousand. The increase was not linear, with some year-to-year variations, but the overall trajectory was positive.
- Significant Decline and Recovery (2011-2014)
- A dramatic decrease in net profit margin occurred in 2012, falling to 0.48%. This coincided with a substantial increase in revenues, suggesting potential investments in growth initiatives or increased operating expenses that temporarily suppressed profitability. The margin then began a recovery, reaching 4.85% in 2014, though it remained below the levels seen prior to 2011.
- Accelerated Profitability (2015-2025)
- From 2015 onwards, the net profit margin experienced a period of strong and consistent growth. It rose from 1.81% in 2015 to 24.30% in 2025. This substantial improvement suggests successful execution of strategic initiatives, enhanced operational efficiency, or a favorable shift in the competitive landscape. Revenue growth continued throughout this period, but the margin expansion indicates that profitability outpaced revenue increases. The margin reached a high of 22.34% in 2023 before increasing further to 24.30% in 2025.
- Overall Trend
- The overall trend reveals a company that initially demonstrated steady profitability, experienced a period of disruption and margin compression, and then achieved significant and sustained improvements in its net profit margin. The recent performance indicates a highly profitable business model, although the earlier volatility suggests the margin is susceptible to changes in operating conditions or strategic decisions.
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Comparison to Competitors
Netflix Inc., net profit margin, long-term trends, comparison to competitors
| Netflix Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Trade Desk Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2025 | 24.30% | 32.81% | 16.17% | 30.08% | 15.31% | 13.14% |
| Dec 31, 2024 | 22.34% | 28.60% | 13.09% | 37.91% | 16.08% | 5.44% |
| Dec 31, 2023 | 16.04% | 24.01% | 12.66% | 28.98% | 9.19% | 2.65% |
| Dec 31, 2022 | 14.21% | 21.20% | 4.42% | 19.90% | 3.38% | 3.80% |
| Dec 31, 2021 | 17.23% | 29.51% | 12.17% | 33.38% | 11.51% | 2.96% |
| Dec 31, 2020 | 11.05% | 22.06% | 10.17% | 33.90% | 28.98% | -4.38% |
| Dec 31, 2019 | 9.26% | 21.22% | 11.99% | 26.15% | 16.39% | 15.89% |
| Dec 31, 2018 | 7.67% | 22.46% | 12.41% | 39.60% | 18.47% | 21.20% |
| Dec 31, 2017 | 4.78% | 11.42% | 26.87% | 39.20% | 16.48% | 16.29% |
| Dec 31, 2016 | 2.11% | 21.58% | 10.81% | 36.97% | 10.09% | 16.88% |
| Dec 31, 2015 | 1.81% | 21.80% | 10.96% | 20.57% | — | 15.98% |
| Dec 31, 2014 | 4.85% | 21.88% | 12.18% | 23.58% | — | 15.37% |
| Dec 31, 2013 | 2.57% | 21.60% | 10.54% | 19.05% | — | 13.62% |
| Dec 31, 2012 | 0.48% | 21.40% | 9.91% | 1.04% | — | 13.44% |
| Dec 31, 2011 | 7.06% | 25.69% | 7.45% | — | — | 11.76% |
| Dec 31, 2010 | 7.44% | 29.01% | 9.58% | — | — | 10.41% |
| Dec 31, 2009 | 6.94% | 27.57% | 10.17% | — | — | 9.15% |
| Dec 31, 2008 | 6.08% | 19.39% | 7.44% | — | — | 11.70% |
| Dec 31, 2007 | 5.55% | 25.33% | 8.37% | — | — | 13.20% |
| Dec 31, 2006 | 4.92% | 29.02% | 10.15% | — | — | 9.84% |
| Dec 31, 2005 | 6.16% | 23.87% | 4.17% | — | — | 7.93% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Media & Entertainment)
Netflix Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)
| Netflix Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2025 | 24.30% | 27.18% |
| Dec 31, 2024 | 22.34% | 25.00% |
| Dec 31, 2023 | 16.04% | 19.79% |
| Dec 31, 2022 | 14.21% | 15.11% |
| Dec 31, 2021 | 17.23% | 23.18% |
| Dec 31, 2020 | 11.05% | 17.29% |
| Dec 31, 2019 | 9.26% | 18.27% |
| Dec 31, 2018 | 7.67% | 21.63% |
| Dec 31, 2017 | 4.78% | 20.09% |
| Dec 31, 2016 | 2.11% | 18.25% |
| Dec 31, 2015 | 1.81% | 16.19% |
| Dec 31, 2014 | 4.85% | 16.64% |
| Dec 31, 2013 | 2.57% | 15.12% |
| Dec 31, 2012 | 0.48% | 13.86% |
| Dec 31, 2011 | 7.06% | 13.73% |
| Dec 31, 2010 | 7.44% | 15.13% |
| Dec 31, 2009 | 6.94% | 13.97% |
| Dec 31, 2008 | 6.08% | 11.85% |
| Dec 31, 2007 | 5.55% | 13.71% |
| Dec 31, 2006 | 4.92% | 12.75% |
| Dec 31, 2005 | 6.16% | 8.14% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Communication Services)
Netflix Inc., net profit margin, long-term trends, comparison to industry (communication services)
| Netflix Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2025 | 24.30% | 23.45% |
| Dec 31, 2024 | 22.34% | 20.96% |
| Dec 31, 2023 | 16.04% | 16.67% |
| Dec 31, 2022 | 14.21% | 11.45% |
| Dec 31, 2021 | 17.23% | 18.71% |
| Dec 31, 2020 | 11.05% | 11.52% |
| Dec 31, 2019 | 9.26% | 14.63% |
| Dec 31, 2018 | 7.67% | 16.43% |
| Dec 31, 2017 | 4.78% | 19.83% |
| Dec 31, 2016 | 2.11% | 12.81% |
| Dec 31, 2015 | 1.81% | 12.78% |
| Dec 31, 2014 | 4.85% | 10.11% |
| Dec 31, 2013 | 2.57% | 12.57% |
| Dec 31, 2012 | 0.48% | 7.58% |
| Dec 31, 2011 | 7.06% | 6.73% |
| Dec 31, 2010 | 7.44% | 11.43% |
| Dec 31, 2009 | 6.94% | 9.07% |
| Dec 31, 2008 | 6.08% | 9.66% |
| Dec 31, 2007 | 5.55% | 9.78% |
| Dec 31, 2006 | 4.92% | 10.17% |
| Dec 31, 2005 | 6.16% | 9.53% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).