Netflix — Jul 16, 2026 release

Cash Flow and Capital Structure Net cash generated from operating activities was $1.7B vs $2.4B in the prior year period. Free cash flow (FCF) 10 in Q2’26 totaled $1.5B vs. $2.3B in Q2’25. This included higher cash tax payments due in part to the Warner Bros. termination fee. For the full year, we continue to expect FCF of approximately $12.5B, and an annual cash content spend to amortization ratio of ~1.1x. Our capital allocation approach is unchanged. We prioritize reinvestment in the business, both organically and through selective M&A, while maintaining a healthy balance sheet and ample liquidity, and then returning excess cash to shareholders via share repurchases. In April, our Board of Directors authorized the repurchase of an additional $25B of our stock on top of the $6.8B of capacity we had remaining as of the end of Q1. In Q2, we bought back $4.7B of stock, our largest quarter of share repurchases, and we currently have $27.1B of capacity left in our remaining authorizations. We ended the quarter with gross debt of $14.4B and cash and cash equivalents of $9.1B. We have $1B of debt maturing later this year, which we plan to refinance. __________________________________ 10 Defined as cash provided by (used in) operating activities less purchases of property and equipment. 5 Environmental, Social, and Governance (ESG) We recently published our 2025 Environmental, Social, and Governance (ESG) report 11 . Key updates for 2025 include how we continue to decarbonize our operations, including the productions of our f