Netflix — Jan 20, 2026 release

FCF was higher than our forecast of $9B (+/- a few hundred million dollars) as the timing of an expected deposit of ~$700M related to our ongoing dispute with the Brazilian tax authorities shifted from 2025 to 2026. For 2026, assuming no material swings in F/X, we expect to generate free cash flow of roughly $11B, which assumes a cash content spend to content amortization ratio of ~1.1x. During the quarter we repurchased 18.9M shares for $2.1B, leaving $8.0B remaining under our existing share repurchase authorization. We ended the quarter with gross debt of $14.5B and cash and cash equivalents of $9.0B. On December 4, we obtained commitments for a $59B senior unsecured bridge facility to support our pending acquisition of Warner Bros. with the intention of replacing the bridge facility commitments with a more permanent and cost effective funding structure prior to closing. On December 19, we entered a $5B senior unsecured revolving credit facility and a $20B senior unsecured delayed draw term loan facility, and reduced our outstanding bridge facility commitments by a corresponding amount to $34B. On January 19, 2026, we obtained an increase to our bridge facility commitments of $8.2B to support our change to an all-cash transaction, increasing our aggregate bridge facility commitments to $42.2B. We anticipate reductions to these bridge facility commitments between now and closing through a combination of future bond offerings and cash we expect to accumulate on our balance sheet. Our capit