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Netflix Inc NFLX

Netflix Inc scores excellent on business quality (8.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$70.30Oct 9, 2026
Business qualityExcellent
Next earningsOct 20, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Netflix Inc does

    Netflix makes money by streaming subscription video content directly to over two hundred million global households, charging recurring monthly fees for entertainment access. The business is expanding its live events and ad-supported tiers to capture new revenue streams beyond standard subscription packages.

  2. What it does best

    Netflix dominates global streaming attention through unmatched content scale, generating $48.4B in revenue. Its viewing data flywheel creates hard-to-copy personalization that keeps churn low compared to Disney's 3.3% revenue growth.

  3. The main risk

    Netflix stock dropped nearly 50% over the past year, reflecting investor panic over growth deceleration and high expectations. If subscriber additions stall as competition intensifies, the premium valuation could face further compression.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Operating margins sit at 35.5% while net margins hit 28.2%, ranking in the top decile of its sector. Profitability is expanding rapidly as fixed content costs scale across a massive global subscriber base.

MoatStrong

Netflix holds a powerful brand and scale moat that locks in global consumers. It sits in the top quartile of its sector with a 94 ROE, making rapid replication by rivals nearly impossible.

GrowthFast

Revenue grew 15.9% to reach $48.4B, continuing a steady climb from $39.0B in 2024. Growth is accelerating compared to historical periods.

Financial healthStrong

Debt-to-equity of 0.5 and interest coverage of 20x mean obligations are easily managed. Free cash flow reached $11.2B, showing strong cash conversion. The balance sheet is getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $3.1M outside pre-planned sales.

Our sealed record on NFLX

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is NFLX a good business?

Netflix Inc scores excellent on the Cluenex quality check (8.1 of 10), measured against its own industry. Profitability is strong, moat strong, growth fast and financial health strong.

Are insiders buying NFLX?

In the last 90 days of SEC Form 4 filings: 3 sold $3.1M outside pre-planned sales.

When does NFLX report earnings?

Oct 20, 2026, after the close.

For members

See NFLX today

  • Today's verdict on NFLX, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Netflix Inc (NFLX)”, https://cluenex.com/stocks/nflx/, data as of Oct 10, 2026.