Netflix, Inc. (NFLX) — Agentic Tribune

Item 1.Business

ABOUT US

Netflix, Inc. (“Netflix”, the “Company”, “registrant”, “we”, or “us”) is one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.

Our core strategy is to grow our business globally within the parameters of our operating margin target. We strive to continuously improve our members' experience by offering compelling content that delights them and attracts new members. We aim to offer a range of pricing plans, including our ad-supported subscription plan, to meet a variety of consumer needs. We seek to drive conversation around our content to further enhance member joy, and we are continuously enhancing our user interface to help our members more easily choose content that they will find enjoyable.

BUSINESS SEGMENTS

We operate as one operating segment. Our revenues are primarily derived from monthly membership fees for services related to streaming content to our members. See Note 13, Segment and Geographic Information, in the accompanying notes to our consolidated financial statements for further detail.

COMPETITION

The market for entertainment video is intensely competitive and subject to rapid change. We compete with a broad set of activities for consumers’ leisure time, including other entertainment video providers, such as linear television, streaming entertainment providers (including those that provide pirated content), video gaming providers, open content platform providers, which provide access to user-generated and professionally produced content, as well as more broadly against other sources of entertainment, such as social media, that our members could choose in their moments of free time. We also compete against entertainment video providers and content producers in obtaining content for our service, both for licensed content and for original content projects.

While consumers may maintain simultaneous relationships with multiple entertainment sources, we strive for consumers to choose us in their moments of free time. We have often referred to this choice as our objective of “winning moments of truth.” In attempting to win these moments of truth with our members, we seek to continually improve our service, including both our technology and our content offerings.

Table of Contents

INTELLECTUAL PROPERTY

We regard our trademarks, service marks, copyrights, patents, domain names, trade dress, trade secrets, proprietary technologies and similar intellectual property as important to our success. We use a combination of patent, trademark, copyright and trade secret laws and confidentiality agreements to protect our proprietary intellectual property. Our intellectual property rights extend to our technology, business processes, the content we produce and distribute through our service, and the consumer products and experiences based thereon. We use the intellectual property of third parties in creating some of our content, merchandising our products and marketing our service. Our ability to provide our members with content they can watch depends on studios, content providers and other rights holders licensing rights, including distribution rights, to such content and certain related elements thereof, such as the public performance of music contained within the content we distribute. The license periods and the terms and conditions of such licenses vary. Our ability to protect and enforce our intellectual property rights is subject to certain risks and from time to time we encounter disputes over rights and obligations concerning intellectual property. We cannot provide assurance that we will prevail in any intellectual property disputes.

REGULATION

The media landscape and the internet delivery of content have seen growing regulatory action. Historically, media has been highly regulated in many countries. We are seeing some of these legacy regulatory frameworks be updated and expanded to address services like ours. In particular, we are seeing some countries update their cultural support legislation to include services like Netflix. This includes investment obligations, levies, and content catalog quotas. Some even restrict the extent of ownership rights we can have both in our service and in our content. In certain countries, regulators are also looking at restrictions that could require formal reviews of and/or adjustments to content that appears on our service in their country. In general these regulations impact all services and may make operating in certain jurisdictions more expensive or restrictive as to the content offerings we may provide.

HUMAN CAPITAL

Our business is to entertain the world across different countries, cultures, languages and tastes. To entertain an audience this global, our Company needs to reflect the world and the variety of stories we tell. To help ensure our workforce is representative of the members we serve, we employ people in multiple countries around the world and work to maintain a global culture of inclusion. We view our employees and our culture as key to our success. As of December 31, 2025, we had approximately 16,000 full-time employees. Of these, approximately 10,900 (68%) were located in the United States and Canada, 2,500 (16%) in Europe, Middle East, and Africa, 1,900 (12%) in Asia-Pacific and 700 (4%) in Latin America. We also have a number of employees engaged in content production, some of whom are part-time or temporary, and whose numbers fluctuate throughout the year and may be covered by collective bargaining agreements.

We believe an important component of our success is our company culture as detailed in the “Netflix Culture Memo”, which was updated in 2024. Our culture is focused on excellence and creating an environment where talented people can thrive — lifting ourselves, each other and our audiences higher and higher. We engage employees and seek feedback through regular town halls, surveys, business reviews and memos, which we often share broadly, inviting comments. We aim to attract and retain great people — representing a broad array of perspectives and skills — to work together as a dream team. For more people and cultures to see themselves reflected on screen, it is important that our employee base represents the communities we serve.

We aim generally to pay our employees at their personal top of market, and they generally are able to choose the form of their compensation between cash and stock options. This permits employee compensation to be highly personalized and reflective of each employee's individual needs and preferences. We conduct pay equity analyses at least annually, and have adopted practices to help ensure that employees from underrepresented groups are not being underpaid based on gender identity (globally) and race or ethnicity (United States (“U.S.”)) relative to others doing the same or similar work under comparable circumstances. We aim to rectify any pay gaps that we find through this analysis.

We care about the health and well-being of our employees and their families and provide a variety of benefit programs based on region, including health benefits. In the U.S., employees generally receive an annual cash health benefit allowance that they may allocate to medical, dental and vision premiums in a way that makes sense for them. Employees have access to a host of other benefits, including mental health, childcare, family planning and a company match for charitable donations.

We believe that our approach to human capital resources has been instrumental in our growth, and has made Netflix a desirable destination for employees.

OTHER INFORMATION

We maintain a website at www.netflix.com. The contents of our website are not incorporated in, or otherwise to be regarded as part of, this Annual Report on Form 10-K. We make available, free of charge on our website, access to our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as soon as reasonably practicable after we file or furnish them electronically with the Securities and Exchange Commission (“SEC”).

Table of Contents

Investors and others should note that we announce material financial and other information to our investors using our investor relations website (ir.netflix.net), SEC filings, press releases, public conference calls and webcasts. We use these channels as well as social media and blogs to communicate with our members and the public about our company, our services and other issues. It is possible that the information we post on social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels and blogs listed on our investor relations website.

Loading financial statements...

Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-04-17 (period ending 2026-03-31).

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding: our core strategy; our ability to improve our content offerings and service; our future financial performance, including expectations regarding revenues, deferred revenue, operating income and margin, net income, expenses, and profitability; liquidity, including the sufficiency of our capital resources, net cash provided by (used in) operating activities, access to financing sources and free cash flows; capital allocation strategies, including any stock repurchases or repurchase programs; stock price volatility; impact of foreign exchange rate fluctuations, including on net income and revenues; expectations regarding hedging activity; impact of interest rate fluctuations; adequacy of existing facilities; future regulatory changes and their impact on our business; intellectual property; cybersecurity; price changes and testing; accounting treatment for changes related to content assets; acquisitions; actions by competitors; partnerships; advertising; multi-household usage; member viewing patterns; dividends; future contractual obligations, including unknown content obligations and timing of payments; our global content and marketing investments, including investments in original programming, consumer products and experiences; impact of work stoppages; content amortization; resolution of tax examinations; tax expense; unrecognized tax benefits; deferred tax assets; resolution of disputes and other proceedings; our ability to effectively manage change and growth; our company culture; and our ability to attract and retain qualified employees and key personnel. These forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those included in forward-

Table of Contents

looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on January 23, 2026, in particular the risk factors discussed under the heading “Risk Factors” in Part I, Item 1A.

We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this Quarterly Report on Form 10-Q, unless required by law.

Investors and others should note that we announce material financial and other information to our investors using our investor relations website (ir.netflix.net), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs to communicate with our members and the public about our company, our services and other issues. It is possible that the information we post on social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels and blogs listed on our investor relations website.

Overview

We are one of the world’s leading entertainment services offering TV series, films, games and live programming across a wide variety of genres and languages. Members can play, pause and resume watching as much as they want, anytime, anywhere, and can change their plans at any time.

Results of Operations

The following represents our consolidated performance highlights:

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Financial Results:
Revenues	$	12,249,757		$	10,542,801		$	1,706,956		16	%
Constant currency change in revenues(1)										14	%
Operating income	$	3,956,997		$	3,346,999		$	609,998		18	%
Operating margin	32.3		%	31.7		%	0.6		%
Net income	$	5,282,791		$	2,890,351		$	2,392,440		83	%

(1) See the “Non-GAAP Constant Currency Information” section below for additional details on our use of constant currency revenue.

Operating margin for the three months ended March 31, 2026 increased by approximately one percentage point as compared to the prior comparative period. The increase in operating margin was primarily driven by revenue growth outpacing the growth in cost of revenues, partially offset by general and administrative, sales and marketing, and technology and development expenses growing at a faster rate relative to revenue growth.

Net income for the three months ended March 31, 2026 increased $2,392 million as compared to the prior comparative period, primarily driven by an increase in interest and other income (expense) due to a $2.8 billion termination fee received in connection with the termination of our agreement with Warner Bros. Discovery, Inc. (“WBD”) to acquire WBD’s streaming and studios businesses, including its film and television studios, HBO Max and HBO (such transaction, the “WBD transaction”). The increase in net income was additionally impacted by a $610 million increase in operating income, driven by a $1,707 million increase in revenues, partially offset by a $625 million increase in cost of revenues due to an increase in content amortization, and a $941 million increase in the provision for income taxes.

Table of Contents

Revenues

We primarily derive revenues from monthly membership fees for services related to streaming content to our members. We offer a variety of streaming membership plans, the price of which varies by country and the features of the plan. As of March 31, 2026, pricing on our plans ranged from the U.S. dollar equivalent of $1 to $39 per month, and pricing on our extra member sub accounts ranged from the U.S. dollar equivalent of $2 to $10 per month. We expect that from time to time the prices of our membership plans in each country may change and we may test other plan and price variations.

We also earn revenues from advertisements presented on our streaming service, consumer products and experiences, and various other sources. Revenues earned from sources other than monthly membership fees were not a material component of revenues for the three months ended March 31, 2026 and March 31, 2025.

	Three Months Ended				Change
	March 31, 2026		March 31, 2025		Q1'26 vs. Q1'25
	(in thousands, except percentages)
Revenues	$	12,249,757	$	10,542,801	$	1,706,956	16	%

Revenues for the three months ended March 31, 2026 increased 16% as compared to the three months ended March 31, 2025, primarily due to the growth in memberships, price increases, and increased advertising revenue.

The following table summarizes revenues by region for the three months ended March 31, 2026 and 2025. Total revenues are inclusive of hedging gains (losses) of $(133) million and $165 million for the three months ended March 31, 2026 and 2025, respectively. See Note 8 Derivative Financial Instruments and Hedging Activities to the consolidated financial statements for further information regarding the Company’s derivative and non-derivative financial instruments.

	Three Months Ended				Change
	March 31, 2026		March 31, 2025		Q1'26 vs. Q1'25
	(in thousands, except percentages)
United States and Canada (UCAN)	$	5,245,298	$	4,617,098	$	628,200	14	%
Europe, Middle East, and Africa (EMEA)	3,998,419		3,404,676		593,743		17	%
Latin America (LATAM)	1,497,058		1,261,934		235,124		19	%
Asia-Pacific (APAC)	1,508,982		1,259,093		249,889		20	%
Total Revenues	$	12,249,757	$	10,542,801	$	1,706,956	16	%

Non-GAAP Constant Currency Information

We believe the non-GAAP financial measure of constant currency revenue is useful in analyzing period-to-period comparisons in revenues absent foreign currency fluctuations. However, this non-GAAP financial measure should be considered in addition to, not as a substitute for, or superior to other financial measures prepared in accordance with GAAP.

In order to exclude the effect of foreign currency rate fluctuations on revenue, we calculate current period revenue assuming foreign exchange rates had remained constant with foreign exchange rates from each of the corresponding months of the prior-year period and exclude the impact of hedging gains or losses realized as revenues. Constant currency percentage change in revenues is calculated as the percentage change between current period constant currency revenue and the prior comparative period revenue. The impact of hedging gains or losses is excluded from both the current and prior periods.

The table below summarizes constant currency revenues by region for the three months ended March 31, 2026 and the constant currency percentage change in revenues by region for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025:

Table of Contents

	Three Months Ended								Three Months Ended						Change
	March 31, 2026								March 31, 2025						Q1'26 vs. Q1'25
	As Reported		Constant Currency Adjustment		Hedging (Gains) Losses Included in Revenues		Constant Currency Revenues		As Reported		Hedging (Gains) Losses Included in Revenues		Revenues Less Hedging Impact		Reported Change		Constant Currency Change
	(in thousands, except percentages)
UCAN	$	5,245,298	$	(20,306)	$	(463)	$	5,224,529	$	4,617,098	$	(14,552)	$	4,602,546	14	%	14	%
EMEA	3,998,419		(418,871)		113,651		3,693,199		3,404,676		(105,225)		3,299,451		17	%	12	%
LATAM	1,497,058		(60,512)		31,286		1,467,832		1,261,934		(13,936)		1,247,998		19	%	18	%
APAC	1,508,982		(40,823)		(11,957)		1,456,202		1,259,093		(31,083)		1,228,010		20	%	19	%
Total Revenues	$	12,249,757	$	(540,512)	$	132,517	$	11,841,762	$	10,542,801	$	(164,796)	$	10,378,005	16	%	14	%

Cost of Revenues

Cost of revenues primarily consists of the amortization of content assets. Other costs of revenues include expenses associated with the acquisition, licensing and production of content, streaming delivery costs, and other operating costs.

Expenses related to the acquisition, licensing and production of content not included in content amortization may include payroll, stock-based compensation, facilities, and other personnel-related expenses, costs associated with obtaining rights to music included in our content, overall deals with talent, miscellaneous production-related costs and participations and residuals. Streaming delivery costs are primarily related to our global content delivery network (“Open Connect”). We have built our own Open Connect network to help us efficiently stream a high volume of content to our members over the internet. Delivery expenses, therefore, include equipment costs related to Open Connect, payroll and related personnel expenses and all third-party costs, such as cloud computing costs, associated with delivering content over the internet. Other operating costs include customer service and payment processing fees, including those we pay to our integrated payment partners, as well as other costs incurred in making our content available to members.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Cost of revenues	$	5,888,238		$	5,263,147		$	625,091	12	%
As a percentage of revenues	48		%	50		%

The increase in cost of revenues was primarily due to a $395 million increase in content amortization relating to our existing and new content. No individual component of the remaining increase in cost of revenues was material.

Sales and Marketing

Sales and marketing expenses consist primarily of expenses for promotional activities such as digital and television advertising, and certain payments made to marketing and advertising sales partners. Our marketing partners include consumer electronics manufacturers, multichannel video programming distributors, mobile operators, and internet service providers. Our advertising sales partners include advertising technology providers and advertising agencies. Sales and marketing expenses also include payroll, stock-based compensation, facilities, and other related expenses for personnel that support advertising sales and marketing activities.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Sales and marketing	$	842,217		$	688,370		$	153,847	22	%
As a percentage of revenues	7		%	7		%

The increase in sales and marketing expenses was primarily driven by a $113 million increase in marketing expenses, coupled with a $48 million increase in personnel-related costs, primarily due to the growth in advertising sales headcount.

Table of Contents

Technology and Development

Technology and development expenses consist primarily of payroll, stock-based compensation, facilities, and other related expenses for technology personnel responsible for making improvements to our service offerings, including testing, maintaining and modifying our user interface, our recommendations and infrastructure. Technology and development expenses also include costs associated with general use computer hardware and software.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Technology and development	$	959,696		$	822,823		$	136,873	17	%
As a percentage of revenues	8		%	8		%

The increase in technology and development expenses was primarily due to a $105 million increase in personnel-related costs.

General and Administrative

General and administrative expenses consist primarily of payroll, stock-based compensation, facilities, and other related expenses for corporate personnel. General and administrative expenses also include professional fees and other general corporate expenses.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
General and administrative	$	602,609		$	421,462		$	181,147	43	%
As a percentage of revenues	5		%	4		%

The increase in general and administrative expenses was primarily due to an $88 million increase in third-party expenses, driven by higher legal fees and transaction-related costs, including those associated with the WBD transaction. General and administrative expenses also increased due to a $79 million increase in personnel-related costs.

Table of Contents

Interest Expense

Interest expense consists primarily of the interest associated with our outstanding debt obligations and the amortization of debt issuance costs. See Note 7 Debt in the accompanying notes to our consolidated financial statements for further detail on our debt obligations.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Interest expense	$	262,077		$	184,172		$	77,905	42	%
As a percentage of revenues	2		%	2		%

Interest expense primarily consisted of interest on our Notes of $176 million for the three months ended March 31, 2026. The increase in interest expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily driven by higher amortization of debt issuance costs, including approximately $85 million recognized in connection with the termination of financing arrangements associated with the WBD transaction. See Note 7 Debt for additional details regarding the termination of financing arrangements associated with the WBD transaction.

Interest and Other Income (Expense)

Interest and other income (expense) consists primarily of foreign exchange gains and losses on foreign currency denominated balances, gains and losses on certain derivative instruments, interest earned on cash, cash equivalents and short-term investments, and miscellaneous other income and expenses.

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Interest and other income (expense)	$	2,852,166		$	50,899		$	2,801,267	5,504	%
As a percentage of revenues	23		%	—		%

Interest and other income (expense) increased in the three months ended March 31, 2026, primarily due to a $2.8 billion termination fee received in connection with the termination of the WBD transaction. See Note 6 Acquisitions for further information.

Provision for Income Taxes

	Three Months Ended						Change
	March 31, 2026			March 31, 2025			Q1'26 vs. Q1'25
	(in thousands, except percentages)
Provision for income taxes	$	1,264,295		$	323,375		$	940,920	291	%
Effective tax rate	19		%	10		%

The increase in the effective tax rate for the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to a decrease in tax benefits associated with lower excess tax benefits on stock-based compensation as well as lower foreign-derived income deduction relative to the growth in income before income taxes.

Liquidity and Capital Resources

	As of				Change
	March 31, 2026		December 31, 2025		March 31, 2026 vs. December 31, 2025
	(in thousands, except percentages)
Cash, cash equivalents, restricted cash and short-term investments	$	12,295,551	$	9,067,872	$	3,227,679	36	%
Short-term and long-term debt	14,360,516		14,462,836		(102,320)		(1)	%

Table of Contents

Cash, cash equivalents, restricted cash and short-term investments increased $3,228 million in the three months ended March 31, 2026, primarily due to cash provided by operations, which includes the receipt of a $2.8 billion termination fee in connection with the termination of the WBD transaction, partially offset by repurchases of stock and cash paid for acquisitions. See Note 6 Acquisitions for further information.

Debt, net of debt issuance costs and discounts, decreased $102 million primarily due to the remeasurement of our Euro-denominated notes in the three months ended March 31, 2026. The amount of principal and interest on our outstanding notes due in the next twelve months is $1,686 million. See Note 7 Debt in the accompanying notes to our consolidated financial statements.

Uses of Cash

Our primary uses of cash include the acquisition, licensing and production of content, marketing programs, streaming delivery, and personnel-related costs. Cash payment terms for non-original content have historically been in line with the amortization period. Investments in original content, and in particular content that we produce and own, require more cash upfront relative to licensed content. For example, production costs are paid as the content is created, well in advance of when the content is available on the service and amortized. We expect to continue to significantly invest in global content, particularly in original content, which will impact our liquidity. Our other uses of cash include strategic acquisitions and investments, as well as share repurchases.

Financing Arrangements

On April 12, 2024, we entered into a five-year, $3 billion unsecured revolving credit facility that matures on April 12, 2029 (the “Revolving Credit Agreement”). In May 2025, we established a $3 billion commercial paper program (the “Commercial Paper Program”) under which we may issue short-term unsecured commercial paper notes. As of March 31, 2026, no amounts have been borrowed under the Revolving Credit Agreement or the Commercial Paper Program.

On February 27, 2026, upon the termination of the Amended and Restated Merger Agreement, all related financing arrangements to fund the previously proposed WBD transaction were terminated in accordance with their respective terms. No amounts had been borrowed under any of the financing arrangements and the related expenses were not material.

We anticipate that we may periodically raise additional debt capital. Our ability to obtain this or any additional financing that we may choose or need, including for the refinancing of upcoming maturities or potential strategic acquisitions and investments, will depend on, among other things, our development efforts, business plans, operating performance and the condition of the capital markets at the time we seek financing. We may not be able to obtain such financing on terms acceptable to us or at all. If we raise additional funds through the issuance of equity or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, and our stockholders may experience dilution.

Share Repurchases

In September 2023, the Board of Directors authorized the repurchase of up to $10 billion of our common stock, with no expiration date, and in December 2024, the Board of Directors increased the share repurchase authorization by an additional $15 billion, also with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. We are not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including our stock price, general economic, business and market conditions, and alternative investment opportunities. We may discontinue any repurchases of our common stock at any time without prior notice. During the three months ended March 31, 2026, the Company repurchased 13,497,098 shares of common stock for an aggregate amount of $1.3 billion. As of March 31, 2026, $6.8 billion remains available for repurchases.

Material Cash Requirements

We currently anticipate that cash flows from operations, available funds and access to financing sources, including our Revolving Credit Facility and Commercial Paper Program, will continue to be sufficient to meet our cash needs for the next twelve months and beyond.

Our material cash requirements from known contractual and other obligations primarily relate to our content, debt and lease obligations. As of March 31, 2026, the expected timing of those payments are as follows:

	Payments due by Period
Contractual obligations (in thousands):	Total		Next 12 Months		Beyond 12 Months
Content obligations (1)	$	24,139,431	$	11,779,222	$	12,360,209
Debt (2)	17,926,034		1,686,288		16,239,746
Operating lease obligations (3)	2,766,274		485,766		2,280,508
Total	$	44,831,739	$	13,951,276	$	30,880,463

Table of Contents

(1)As of March 31, 2026, content obligations were comprised of $4.1 billion included in “Current content liabilities” and $1.6 billion of “Non-current content liabilities” on the Consolidated Balance Sheets and $18.5 billion of obligations that are not reflected on the Consolidated Balance Sheets as they did not then meet the criteria for recognition.

The material cash requirements above do not include any estimated obligation for the unknown future titles, payment for which could range from less than one year to more than five years. However, these unknown obligations are expected to be significant and we believe could include approximately $1 billion to $4 billion over the next three years, with the payments for the vast majority of such amounts expected to occur after the next twelve months. The foregoing range is based on considerable management judgments and the actual amounts may differ. Once we know the title that we will receive and the license fees, we include the amount in the contractual obligations table above.

(2)Debt obligations include our Notes consisting of principal and interest payments. See Note 7 Debt to the consolidated financial statements for further details.

(3)Operating lease obligations are comprised of operating lease liabilities included in “Accrued expenses and other liabilities” and “Other non-current liabilities” on the Consolidated Balance Sheets, inclusive of imputed interest. Operating lease obligations also include additional obligations that are not reflected on the Consolidated Balance Sheets as they did not meet the criteria for recognition. See Note 5 Balance Sheet Components in the accompanying notes to our consolidated financial statements for further details regarding leases.

Cash Flows

The following table summarizes our cash flows:

	Three Months Ended				Change
	March 31, 2026		March 31, 2025		Q1'26 vs. Q1'25
	(in thousands, except percentages)
Net cash provided by operating activities	$	5,290,205	$	2,789,199	$	2,501,006	90	%
Net cash provided by (used in) investing activities	(781,874)		485,662		(1,267,536)		(261)	%
Net cash used in financing activities	(1,230,814)		(4,028,316)		(2,797,502)		(69)	%

Net cash provided by operating activities for the three months ended March 31, 2026 increased $2,501 million as compared to the corresponding period in 2025, primarily driven by a $2,392 million or 83% increase in net income which was largely attributable to an increase in interest and other income (expense) due to a $2.8 billion termination fee received in connection with the termination of the WBD transaction, a $749 million increase in adjustments for non-cash expenses, and $200 million in favorable changes in working capital, partially offset by an $841 million increase in payments for content assets. Changes in working capital includes $729 million of non-routine payments made during the current period in connection with non-income tax assessments in Brazil for prior tax periods, which were offset by favorable changes in other working capital balances.

Net cash used in investing activities for the three months ended March 31, 2026 increased $1,268 million as compared to the corresponding period in 2025, primarily due to a net decrease of $614 million in cash flows from maturities, sales and purchases of investments, coupled with net cash outflows for acquisitions for an aggregate amount of $586 million in the three months ended March 31, 2026, as compared to no acquisition-related cash flows in the corresponding period in 2025. In addition, purchases of property and equipment increased $68 million in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Net cash used in financing activities for the three months ended March 31, 2026 decreased $2,798 million as compared to the corresponding period in 2025, primarily driven by a $2,266 million decrease in repurchases of common stock, coupled with no repayments of debt in the three months ended March 31, 2026, as compared to $800 million in repayments of debt in the corresponding period in 2025. In addition, proceeds from the issuance of common stock decreased $302 million in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

Indemnification

The information set forth under Note 9 Commitments and Contingencies to the consolidated financial statements under the caption “Indemnification” is incorporated herein by reference.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with U.S. generally accepted accounting principles and the Company’s discussion and analysis of its financial condition and operating results require the Company’s management to make judgments,

Table of Contents

assumptions and estimates that affect the amounts reported. Note 1, “Basis of Presentation and Summary of Significant Accounting Policies” of the Notes to consolidated Financial Statements in Part I, Item 1 of this Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025, describe the significant accounting policies and methods used in the preparation of the Company’s consolidated financial statements. There have been no material changes to the Company’s critical accounting estimates included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Loading holders...

Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Recent insider activity

Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 8 transactions across 5 insiders. Net: -1,313,029 shares, -$120,315,322.

Date	Insider	Role	Action	Shares	Price	Value
2026-06-01	HASTINGS REED	Director	Sell	-386,700 ×2	$85.97	-$33,244,035
2026-05-07	Neumann Spencer Adam	Chief Financial Officer	Sell	-9,253	$88.95	-$823,075
2026-05-07	Peters Gregory K	Co-CEO	Sell	-27,312	$88.69	-$2,422,421
2026-05-05	SARANDOS THEODORE A	Co-CEO	Sell	-27,312 ×3	$87.97	-$2,402,627
2026-05-05	HYMAN DAVID A	Chief Legal Officer	Sell	-5,722	$88.08	-$504,021
2026-05-01	HASTINGS REED	Director	Sell	-407,550 ×3	$93.13	-$37,956,938
2026-04-02	Neumann Spencer Adam	Chief Financial Officer	Sell	-28,630	$98.00	-$2,805,740
2026-04-01	HASTINGS REED	Director	Sell	-420,550 ×3	$95.49	-$40,156,465

Source: SEC Form 4 filings.

Next expected filings

~2026-07-17 10-Q expected by 2026-08-06 (in 36 days)
~2026-10-21 10-Q expected by 2026-11-10 (in 132 days)
~2027-01-23 10-K expected by 2027-02-26 (in 226 days)
~2027-04-16 10-Q expected by 2027-05-06 (in 309 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-06-05 8-K Shareholder Vote Results; Other Events
2026-04-23 8-K Other Events
2026-04-17 10-Q Quarterly Report
2026-04-16 DEF 14A Proxy Statement
2026-04-16 8-K Earnings Release; Officer/Director Change; Financial Statements and Exhibits
2026-02-27 8-K Material Agreement Terminated
2026-01-23 10-K Annual Report
2026-01-20 8-K Earnings Release; Financial Statements and Exhibits
2026-01-20 8-K Material Agreement Entered; Regulation FD Disclosure; Financial Statements and Exhibits
2025-12-22 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
2025-12-05 8-K Material Agreement Entered; Regulation FD Disclosure; Financial Statements and Exhibits
2025-11-04 8-K Officer/Director Change; Financial Statements and Exhibits
2025-10-30 8-K Other Events; Financial Statements and Exhibits
2025-10-22 10-Q Quarterly Report
2025-10-21 8-K Earnings Release; Financial Statements and Exhibits

Line item
Period ending