How Netflix (NFLX) Makes Money: A Visual Guide
Netflix (NFLX) generated $45.18B in revenue (TTM through Q4 2025), earning $10.98B in net profit (24.3% margin). Below is an interactive breakdown of how revenue flows through the income statement.
Netflix (NFLX) Income Statement Flow
Frequently asked questions
How much revenue does Netflix (NFLX) generate?
- Netflix (NFLX) generated $45.18B in total revenue for TTM through Q4 2025 with a net profit margin of 24.3%.
What is Netflix (NFLX) gross profit margin?
- Netflix (NFLX) reported a gross profit margin of 48.5% for TTM through Q4 2025, equivalent to $21.91B in gross profit. This means Netflix retains 48.5% of each revenue unit after direct costs of production.
What is Netflix (NFLX) operating profit margin?
- Netflix (NFLX) reported an operating profit margin of 29.5% for TTM through Q4 2025, equivalent to $13.33B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Netflix (NFLX) net profit margin?
- Netflix (NFLX) reported a net profit margin of 24.3% for TTM through Q4 2025, equivalent to $10.98B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Netflix (NFLX) invest in R&D?
- Netflix (NFLX) invested $3.39B in research and development in TTM through Q4 2025 (7.5% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Netflix (NFLX) spend on capital expenditures?
- Netflix (NFLX) spent $688.22M on capital expenditures in TTM through Q4 2025 (1.5% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Netflix (NFLX) free cash flow?
- Netflix (NFLX) generated $9.46B in free cash flow for TTM through Q4 2025 (20.9% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Netflix (NFLX) effective tax rate?
- Netflix (NFLX) had an effective tax rate of 13.7% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.