Netflix — Apr 11, 2025 release

Cash Flow and Capital Structure Our capital allocation approach is unchanged - we prioritize profitable growth by reinvesting in our business, maintaining ample liquidity, and returning excess cash (beyond several billion dollars of minimum cash and any used for selective M&A) to shareholders through share repurchases. In Q1’25, net cash generated by operating activities was $2.8B vs. $2.2B in the prior year period. Free cash flow 21 totaled $2.7B vs. $2.1B in Q1’24. We’re still forecasting full year 2025 free cash flow of about $8B. During the quarter, we paid down $800M of senior notes using proceeds from our 2024 refinancing and we repurchased 3.7M shares for $3.5B. We have $13.6B remaining under our existing share repurchase authorization. We ended the quarter with gross debt of $15.1B and cash and cash equivalents of $7.2B. In Q2, we have $1B of debt maturities, which we’ll pay down with proceeds from our investment grade bond deal last year, which are currently held in short-term investments. Governance As part of the natural evolution of our leadership structure and succession planning, Reed Hastings has transitioned from Executive Chairman to Chairman of the Board and a non-executive director. Separately, Tim Haley, our longest standing independent Director, has informed us that he will not stand for re-election. For more than 27 years, Tim has been on this journey with us and his counsel and leadership have been a much valued part of our success. We thank Tim for his long service and many contributions to the Netflix Board of Directors. Reference For quick reference, our past investor letters can be found here 22 . ___________________________________ 21 Defined as cash provided by (used in) operating