Netflix Posts Profit-to-Profit Growth on Both Three-Month and Six-Month Windows in Interim Filing

Bottom line

On the headline lines of this interim filing, Netflix, Inc. — identified by 10-Q covering period-ended-2026-06-30 under accession 0001065280-26-000212 for the issuer identified by 0001065280 and NFLX — delivered a stronger top line and a stronger bottom line than the prior-year windows on both the three-month and the six-month year-to-date bases. Revenues rose on a year-over-year basis at both reporting levels, the company remained in operating-profit territory and moved higher than the prior period, net income attributable to parent climbed on both windows while staying in profit territory, and diluted earnings per share rose against the prior-period comparable at both the three-month and the six-month horizons. Every year-over-year direction on these four metrics — Revenues, Operating Income (Loss), Net Income (Loss) Attributable to Parent, and Earnings Per Share, Diluted — is an authorized increase on both the three-month and the six-month comparisons, with each metric remaining in profit against a profit prior period.

The supporting reported figures, all drawn from the consolidated statements embedded in this filing, are as follows. Revenues were $12,559,938,000 USD for the three months ended June 30, 2026 and $24,809,695,000 USD for the six months ended June 30, 2026, compared with $11,079,166,000 USD for the three months ended June 30, 2025 and $21,621,967,000 USD for the six months ended June 30, 2025. Operating Income (Loss) was $4,192,610,000 USD for the three months ended June 30, 2026 and $8,149,607,000 USD for the six months ended June 30, 2026, against $3,774,694,000 USD for the three months ended June 30, 2025 and $7,121,693,000 USD for the six months ended June 30, 2025. Net Income (Loss) Attributable to Parent was $3,401,414,000 USD for the three months ended June 30, 2026 and $8,684,205,000 USD for the six months ended June 30, 2026, compared with $3,125,413,000 USD for the three months ended June 30, 2025 and $6,015,764,000 USD for the six months ended June 30, 2025. Earnings Per Share, Diluted was $0.80 per diluted share USD/SHARES for the three months ended June 30, 2026 and $2.03 per diluted share USD/SHARES for the six months ended June 30, 2026, against $0.72 per diluted share USD/SHARES for the three months ended June 30, 2025 and $1.38 per diluted share USD/SHARES for the six months ended June 30, 2025.

Management's own framing in the Basis of Presentation note characterises the interim financial information as unaudited, prepared on a basis consistent in all material respects with the prior Annual Report on Form identified by 10-Q, and subject to the same significant estimates — most notably the amortization of content assets and the recognition and measurement of income tax assets and liabilities. Management also flags the recently completed ten-for-one forward Stock Split, noting that all share and per-share references in this filing have been retroactively adjusted, which is the reason the diluted EPS figures above are reported on a post-split basis.

The scope of this section is intentionally narrow: only the consolidated income-statement lines and EPS for the three-month and six-month windows and their prior-year comparatives, drawn from the unaudited interim consolidated financial statements. The filing's segment of origin for these statements is the same set the rest of this analysis will build on. The filing evidence does not attribute this change to any single cause. For analysts comparing interim filings across issuers, the same profit-to-profit growth pattern on both windows is visible in our companion piece on UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows.

Financial performance

72 per diluted share USD/SHARES. 38 per diluted share USD/SHARES. Each comparison rests on the prior-period value being a profit, with the current period also a profit, on both the quarter and the year-to-date window.

- Management explanations: The filing describes a forward stock split that was completed in November, with references to share and per-share amounts retroactively adjusted to reflect the split. It also discusses hedging activity: interest rate swap agreements designated as fair value hedges of specifically identified tranches of fixed-rate debt, with changes in fair value recognized in Interest expense net of the offsetting change in the hedged debt, and with periodic settlements also classified within Interest expense.

Cash flows from those hedging activities are classified within Net cash provided by operating activities, consistent with the treatment of interest payments on the hedged debt, and additional disclosure is made in the cited note covering derivative financial instruments and hedging activities. - Analyst inference: Looking through the headline profit figures, the joint movement of revenue, operating income, net income and diluted EPS in the same direction across both windows is the kind of pattern readers can verify against comparable filings like Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing to triangulate how an interim profit-to-profit step-up typically reads on the face of the income statement.

The six-month comparison and the quarter comparison both register as profit-to-profit increases on the four metrics, suggesting no window of the filing has yet shown an operating loss. - Counter-evidence: None present in the excerpt. - Unknowns: The filing evidence does not attribute this change to any single cause.

The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

Operating drivers and segments

The filing presents results for NETFLIX INC on a consolidated basis, with no separately disclosed reportable segments. Revenue and operating income for the three-month period the three months ended June 30, 2026 reached $12,559,938,000 and $4,192,610,000, both higher than the prior-year three-month comparative of $11,079,166,000 and $3,774,694,000, with operating income remaining a profit in both windows. On the six-month year-to-date view, revenue moved from $21,621,967,000 in the prior year to $24,809,695,000 for the six months ended June 30, 2026, while operating income moved from $7,121,693,000 to $8,149,607,000, again preserving a profit-to-profit transition on both windows. No revenue split by geography, content type, or subscription tier is offered in the quoted material, so segment-level margin behavior cannot be isolated from the filing itself.

Management's narrative in the basis-of-presentation discussion frames the interim financials as prepared under U.S. GAAP consistent with the most recent Annual Report on Form referenced in the text, emphasizing that estimates and judgments — particularly around the amortization of content assets and the recognition and measurement of income tax assets and liabilities — can shift reported figures. Management also notes that a ten-for-one forward stock split referenced as the "Stock Split" was completed in November of the prior reporting year, and that share and per-share references in the statements have been retroactively adjusted to reflect it. The hedging discussion explains that interest rate swap agreements are designated as fair value hedges of specifically identified tranches of fixed-rate debt, with changes in fair value and periodic settlements flowing through interest expense. Management further flags that interim results are not necessarily indicative of a full year.

The filed evidence does not include a management-attributed driver for the specific change between the three months ended June 30, 2026 and the three months ended June 30, 2025 operating income or revenue, beyond the general estimate-sensitivity commentary. The filing evidence does not attribute this change to any single cause.

Independent analysts reading this draft should weigh a few cautions that the quoted material itself does not resolve. First, the absence of segment disclosure means any comparison of streaming-versus-advertising or regional mix must come from outside the filing rather than from the reported numbers. Second, the heavy reliance on amortization of content assets introduces estimation sensitivity that the catalog of facts does not quantify, so changes between the two periods may reflect accounting judgments rather than pure operating performance. Third, the stock-split adjustment changes the per-share arithmetic but not the underlying cash or operating picture, so cross-period comparisons should be read on a split-adjusted basis. Readers looking for a parallel profit-to-profit operating profile can compare against filings such as UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows, which traces a similar year-over-year improvement pattern at a different issuer. No peer or industry benchmark is embedded in this filing, so cross-company context remains external. The filing evidence contains no peer or industry comparison.

Cash flow and capital

- Operating cash generation remained the engine of liquidity. Net cash provided by operating activities was $1,743,812,000 for the three months ended June 30, 2026 and $7,034,017,000 for the six months ended June 30, 2026, compared with $2,423,258,000 and $5,212,457,000 for the prior-year windows. Year over year, six-month operating cash flow increased while the three-month figure decreased; both periods remained positive.

The filing evidence does not attribute this change to any single cause. - Investing activity continued to be a net use of cash. Net cash used in investing activities was -$218,644,000 for the three months ended June 30, 2026 and -$1,000,518,000 for the six months ended June 30, 2026, versus net cash provided by investing activities of $768,684,000 and $1,254,346,000 a year earlier.

The swing from a positive to a negative outcome reduced headline free cash flow and is the single largest change on the cash-flow statement. The filing evidence does not attribute this change to any single cause. - Capital intensity was a meaningful contributor to the investing outflow.

Payments to acquire property, plant, and equipment were $218,644,000 for the three months ended June 30, 2026 and $414,774,000 for the six months ended June 30, 2026, versus $155,889,000 and $284,166,000 in the prior year. Both the quarter and the half-year stepped higher, suggesting an enlarged content, infrastructure, or production investment posture relative to the comparable windows. The filing evidence does not attribute this change to any single cause.

- Financing activity remained a net outflow, consistent with active capital return. Net cash used in financing activities was -$4,669,627,000 for the three months ended June 30, 2026 and -$5,900,441,000 for the six months ended June 30, 2026, compared with -$2,502,868,000 and -$6,531,184,000 in the prior year. The three-month outflow was larger than the prior-year three-month figure, and the six-month outflow was also larger; both periods remained negative.

The filing evidence does not attribute this change to any single cause. - Share repurchases sat at the center of capital return. Payments for repurchase of common stock were $4,714,403,000 for the three months ended June 30, 2026 and $5,984,991,000 for the six months ended June 30, 2026, versus $1,654,327,000 and $5,190,723,000 a year earlier.

Repurchase intensity rose on both windows, reinforcing the narrative that returning capital rather than adding leverage or building cash was management's stated priority. Reader-facing comparisons of capital deployment decisions can be cross-checked through analysis such as Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing, which similarly frames buyback flow against operating cash generation.

The filing evidence does not attribute this change to any single cause. - On the balance sheet, cash and cash equivalents stood at $9,099,232,000 as of the balance sheet date of June 30, 2026, accounts payable was $814,551,000, and long-term debt, excluding current maturities, was $11,825,548,000. The combination of higher repurchases, rising capital expenditures, and a heavier financing outflow suggests a posture of deploying rather than stockpiling liquidity.

The filing evidence does not attribute this change to any single cause. - The filing's commentary points to broader hedge, tax, and Note 7 debt mechanics that are reflected indirectly in financing activity; Note 8 addresses derivative fair-value remeasurement, while Level 1 and Level 2 frame the fair-value hierarchy for the Company's investment and short-term instruments.

Peer and historical context

- For NETFLIX INC under 10-Q period-ended-2026-06-30 (accession 0001065280-26-000212), the filing supplies the four full income-statement and cash-flow datapoints needed to compare the recent quarter and year-to-date window against their matching prior-year spans, and nothing else in scope for a peer panel. Hard year-over-year context therefore reads as follows: - Top line: Revenues for the three months ended June 30, 2026 ($12,559,938,000 USD) were higher than Revenues for the three months ended June 30, 2025 ($11,079,166,000 USD), and Revenues for the six months ended June 30, 2026 ($24,809,695,000 USD) were higher than Revenues for the six months ended June 30, 2025 ($21,621,967,000 USD).

The authorized comparison captures the direction on both windows; magnitude is left to the inserted figures. - Operating result: Operating Income (Loss) for the three months ended June 30, 2026 ($4,192,610,000 USD) was higher than Operating Income (Loss) for the three months ended June 30, 2025 ($3,774,694,000 USD), and Operating Income (Loss) for the six months ended June 30, 2026 ($8,149,607,000 USD) was higher than Operating Income (Loss) for the six months ended June 30, 2025 ($7,121,693,000 USD). Both spans remain profitable across the move.

- Bottom line: Net Income (Loss) Attributable to Parent for the three months ended June 30, 2026 ($3,401,414,000 USD) was higher than Net Income (Loss) Attributable to Parent for the three months ended June 30, 2025 ($3,125,413,000 USD), and Net Income (Loss) Attributable to Parent for the six months ended June 30, 2026 ($8,684,205,000 USD) was higher than Net Income (Loss) Attributable to Parent for the six months ended June 30, 2025 ($6,015,764,000 USD). Each transition stayed within profitability. - Cash generation: Net Cash Provided by (Used in) Operating Activities for the three months ended June 30, 2026 ($1,743,812,000 USD) was lower than the prior-year quarter ($2,423,258,000 USD), while for the six months ended June 30, 2026 ($7,034,017,000 USD) it was higher than the prior-year half ($5,212,457,000 USD).

The directional split between the quarterly and cumulative cash-flow lines is the cleanest offset in the four-cell income-statement and cash-flow grid. - Peer panel: the filing's quoted evidence contains no comparable figures for a named competitor set, so no like-for-like cross-issuer comparison can be drawn from this evidence. The filing evidence contains no peer or industry comparison.

- Segment panel: the cited notes speak to debt, derivatives, fair-value levels (Level 1, Level 2) and equity (Note 7, Note 8, Note 9), and the Part II items speak to legal proceedings, risk factors and controls (Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, Item 6); none of those sections provides a like-for-like year-ago split by reportable segment. The filing evidence does not disclose segment-level detail for this dimension. - A related earnings-analysis write-up covering a similarly structured profit-to-profit move on both windows is available in the Lizely archive at UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows, useful only as orientation for the four-cell direction pattern this section describes — not as evidence of any Netflix-specific peer number.

Scenario analysis

- Reported facts: NETFLIX INC (NFLX) filed its interim report under 10-Q for period-ended-2026-06-30 (0001065280-26-000212, 0001065280). For the three-month reporting period the three months ended June 30, 2026, Revenues were $12,559,938,000 and Net Income Attributable to Parent was $3,401,414,000. For the prior-year comparative the three months ended June 30, 2025, Revenues were $11,079,166,000 and Net Income Attributable to Parent was $3,125,413,000. For the six-month year-to-date period the six months ended June 30, 2026, Revenues were $24,809,695,000 and Net Income Attributable to Parent was $8,684,205,000. For the prior-year comparative the six months ended June 30, 2025, Revenues were $21,621,967,000 and Net Income Attributable to Parent was $6,015,764,000. Authorized direction: Revenues higher than the prior period on both windows; Net Income Attributable to Parent higher than the prior period on both windows; transition profit to profit on both windows. Cash flow per authorized direction: operating higher year-over-year on the half-year and lower year-over-year on the quarter; investing negative year-over-year on both windows; financing negative year-over-year on both windows. Capex (payments to acquire property, plant, and equipment) higher year-over-year on both windows. Share repurchase payments higher year-over-year on both windows. The base case assumes these reported trends continue.

- Analyst inference: continued revenue and earnings growth alongside stable margins, with the termination-fee gain already booked in Interest and other income (expense) during the first quarter of the fiscal year providing a cushion. Sustained buyback authorization per the cited note (referenced under Note 9) would reinforce per-share metrics. Resolution of the terminated WBD transaction removes deal-uncertainty overhang noted in the filing. - Counter-evidence / caveats: operating cash flow on the quarter authorized lower than the prior period; investing cash flow authorized lower than the prior period on both windows, suggesting elevated capital intensity. The filing evidence does not attribute this change to any single cause.

- Analyst inference: the multi-billion termination fee is a one-time boost, and absent that tailwind the underlying earnings trajectory is the relevant signal. Higher payments to acquire property, plant, and equipment versus the prior year on both windows constrain free cash conversion. Operating cash flow on the quarter authorized lower year-over-year despite profit-to-profit earnings growth, which warrants monitoring. - Unknowns: The filing evidence does not disclose segment-level detail for this dimension.; The filing evidence contains no peer or industry comparison..

Risks and what to watch

- Reported facts

The filing for NETFLIX INC under 10-Q for period-ended-2026-06-30, identified by accession 0001065280-26-000212 and ticker NFLX, reports Revenues of $12,559,938,000 USD for the three months ended June 30, 2026 and $24,809,695,000 USD for the six months ended June 30, 2026. Net Income (Loss) Attributable to Parent was $3,401,414,000 USD for the three months ended June 30, 2026 and $8,684,205,000 USD for the six months ended June 30, 2026. The corresponding prior-year figures were $11,079,166,000 USD and $21,621,967,000 USD for Revenues, while Net Income (Loss) Attributable to Parent was $3,125,413,000 USD and $6,015,764,000 USD.

The debt discussion in Note 7 describes SOFR-linked floating-rate tranches, redemption provisions, and restrictions affecting liens, mergers, asset transfers, sale and lease-back transactions, and additional subsidiary indebtedness. Note 8 provides related derivative and hedging disclosures. The revolving credit agreement requires a minimum ratio of consolidated EBITDA to consolidated interest expense, tested at the end of each fiscal quarter.

- Management explanations

Management presents the debt structure as preserving financing flexibility while imposing customary credit protections. The company also describes a commercial paper program, which creates a potential source of short-term funding but may add sensitivity to market access and short-term funding conditions.

- Analyst inference

Both current and prior-year periods remain profitable on the reported net-income line, while both reported revenue lines are positive. The authorized year-over-year comparison is therefore directionally positive, but the filing does not provide a causal explanation for the movement.

The filing evidence does not attribute this change to any single cause.

- Counter-evidence

The filing evidence contains no peer or industry comparison.

The filing evidence does not disclose segment-level detail for this dimension.

The positive reported revenue and net-income comparisons provide support for continued earnings progress, but they do not establish the sustainability of that trend. Floating-rate debt, covenant constraints, commercial paper exposure, and legal or regulatory developments could offset future operating gains. Conversely, hedging activity and the company’s stated liquidity arrangements may provide partial protection, although the filing excerpt does not quantify their effect.

- Unknowns

The filing evidence does not provide a forward-looking revenue or earnings forecast, a detailed subscriber outlook, or a segment-level explanation of performance. It also does not disclose enough information here to assess the effect of interest-rate changes, refinancing activity, derivative settlements, or commercial paper usage on future results.

- Metrics to watch next period

Watch the reported comparison between $12,559,938,000 and $11,079,166,000, together with the comparison between $24,809,695,000 and $21,621,967,000. Track whether net income remains positive in both windows by comparing $3,401,414,000 with $3,125,413,000 and $8,684,205,000 with $6,015,764,000.

Monitor SOFR-linked borrowing costs, the company’s compliance with the consolidated EBITDA-to-interest-expense covenant, and any material changes described in Note 8. Review Note 7 for refinancing, redemption, lien, and additional-indebtedness developments, while watching Item 1A and Item 1 for changes in risk factors or legal proceedings. Also monitor Item 4 for controls and procedures disclosures.