Netflix Stock (NFLX): Members, Margins and the 2026 Slide in Numbers

Michael Whitman · Trading since 2017, full-time since 2020 · YouTube creator, 137K subscribers · Published 2026-11-07

Netflix stock trades on the Nasdaq under the ticker NFLX. If you last looked before late 2025 the quote will look wrong: a 10-for-1 split, completed on November 14, 2025, turned a share near $1,110 into ten shares near $111. From that $111.22 close the price has fallen 43.0%, to $63.41 on November 6, 2026.

That fall came while the business was having some of its best quarters on paper. Revenue grew 11.8% in the September 2026 quarter and the operating margin reached 34.6%. The numbers below come from Netflix’s SEC filings and shareholder letters, and from the daily price record, so you can see both halves of that story.

NFLX at a glance: a 32.4% fall in 2026

Price is the November 6, 2026 close. Trailing figures add the first nine months of 2026 to full-year 2025 and take away the first nine months of 2025, all from the 10-Q filed October 21, 2026 and the 2025 10-K. Every per-share figure is on the post-split basis.

In 2026 to November 6 the price fell 32.4%, while the S&P 500 rose 7.8%. Its record close was $133.91 on June 30, 2025, and its lowest close since then was $61.99 on October 28, 2026, 53.7% below that record.

How it works now: membership fees, ads and paid sharing

Almost all of it is membership fees. The 2025 10-K says revenue from anything other than monthly membership fees, advertising included, was “not a material component” of revenue. That is changing slowly: in its October 20, 2026 letter Netflix said it now expects about $2.7 billion of ad revenue in 2026, down from about $3 billion it had expected before.

Ads and paid sharing were the two big changes. The ad-supported plan launched in November 2022 in 12 countries. Paid sharing, which charges for an account used outside one household, launched in May 2023 in “100+ countries, representing more than 80% of our revenue base”, the July 2023 letter says. By the end of 2024 the ads plan was taking “over 55% of sign-ups” in the countries that offer it.

Four regions, similar growth. In the September 2026 quarter the US and Canada brought in $5.63 billion, Europe, the Middle East and Africa $4.11 billion, Latin America $1.60 billion and Asia-Pacific $1.54 billion. Each grew between 11% and 17% on a year earlier.

The Warner Bros. deal that fell through

The Warner Bros. deal that did not happen. On December 4, 2025 Netflix agreed to buy Warner Bros. Discovery’s studios and streaming businesses, including HBO Max. On February 27, 2026 Warner Bros. Discovery ended the agreement to merge with Paramount Skydance instead. The $2.8 billion termination fee it owed Netflix was paid at the same time by Paramount Skydance on its behalf, the 10-Q says. NFLX rose 13.77% that day, to $96.24. It has fallen 34.1% since.

The original data: Netflix paid net additions and operating margin

Paid net additions, 2017-2024. We took paid memberships at each year end from the latest 10-K that reports the year, summing the four regions from 2017 onward. The 2016 starting point (89.09 million) is domestic plus international paid streaming memberships, the definition Netflix used then. For 2017 both methods give the same total, 110.64 million, so the switch does not move the 2017 figure.

• 2020: 36.57 million paid net additions, the pandemic year, taking the total to 203.66 million.
• 2022: 8.90 million, the weakest year in the series. The US and Canada lost 0.92 million paid memberships, ending at 74.30 million.
• 2023 and 2024: 29.53 million and then 41.35 million after paid sharing, with the US and Canada back to 80.13 million and then 89.6 million.
• After 2024: the January 2025 letter said Netflix would “no longer report paid memberships” every quarter, only milestones. The last exact count is 301.63 million at December 31, 2024. The January 2026 letter said it “crossed the 325M paid memberships milestone” in the fourth quarter of 2025.

Operating margin, 2010-2026. Operating income divided by revenue for each calendar year, from the 10-K figures, plus the first nine months of 2026.

• 2010 to 2016: 13.1% in 2010, then between 1.4% and 7.3% every year from 2012 to 2016.
• 2020 and 2021: 18.3% and 20.9%. The margin then slipped to 17.8% in 2022, the year members stalled.
• 2024 and 2025: 26.7% and 29.5%. Revenue went from $31.62 billion in 2022 to $45.18 billion in 2025.
• 2026: 33.5% from January to September, with 34.6% in the third quarter alone. Netflix’s own outlook in the October letter is 31.5% for the year.

Download the data: members and margins and earnings-day moves. You are welcome to reuse them with a credit and a link; the terms sit in the site license.

A worked example: Netflix’s P/E with and without the $2.8 billion fee

All inputs are in the 10-Q filed October 21, 2026 and the 2025 10-K, except the price.

1. Trailing EPS. Diluted EPS was $2.90 for January to September 2026, $2.53 for 2025 and $1.97 for January to September 2025. $2.90 + $2.53 − $1.97 = $3.46.
2. P/E. $63.41 ÷ $3.46 = 18.3. That multiple is explained on our P/E ratio page.
3. Market value. $63.41 × 4,106,325,903 shares = $260.38 billion. Our market cap page explains the measure.
4. The one-off. Trailing pre-tax income was $17.70 billion, and the $2.8 billion fee, booked in “interest and other income (expense)” in the first quarter, is 15.8% of it. Netflix does not give an after-tax figure for the fee, so we do not adjust EPS ourselves.
5. A cleaner check. Operating income leaves the fee out. Trailing operating income was $15.56 billion, and $260.38 billion ÷ $15.56 billion = 16.7.

Buybacks: Netflix’s largest quarter of repurchases

Buybacks shrink the count. In the September 2026 quarter Netflix “bought back 63.9 million shares for $4.8B”, its largest quarter of repurchases, the letter says. It spent $10.78 billion in the first nine months of 2026, more than the $9.13 billion of all of 2025. Diluted shares were 3.3% lower than a year earlier. The stock buybacks page explains why that lifts EPS.

Earnings days: four down Netflix results days in 2026

Netflix posts its results and shareholder letter just after the 4 p.m. Eastern close. We took every Item 2.02 8-K since October 2004, read each, and kept the 89 that report a quarter’s results; four were guidance updates or data releases. Two came before the open (April 18, 2007 and July 25, 2008), so the same session counts. Prices are split-adjusted.

• The median move was 9.43%, against 1.38% across the other 5,462 sessions, about 6.8 times as large.
• 68 of the 89 (76.4%) moved 5% or more, against 6.3% of ordinary sessions; 40 moved 10% or more.
• Direction: 38 rose (42.7%), against a 50.8% up-rate on other days, a gap within chance (two-sided binomial p = 0.14).
• The largest were +42.22% on January 24, 2013 and −40.91% on October 15, 2004. On April 20, 2022, after the first-quarter results, the stock fell 35.12%.
• 2026: all four were down: −2.18% in January, −9.72% in April, −7.26% in July and −5.31% on October 21. The only other year with four down results days was 2020.

When it fails: two falls of more than 75% since 2010

Netflix has fallen more than 75% twice since 2010. It dropped 82.0% from July 13, 2011 to September 25, 2012, and regained that high on September 10, 2013. It fell 75.9% from November 17, 2021 to May 11, 2022 and took until August 20, 2024 to get back. Our drawdown page explains how these are measured.

Strong results do not protect the price. The current fall, 53.7% at the October 2026 low, came in a year when the operating margin was the highest in our series, which starts in 2010. In 2026 the earnings-day moves were all negative.

Year to year it swings hard. NFLX fell 51.1% in 2022 against the S&P 500’s 19.4%, then rose 65.1% in 2023 and 83.1% in 2024, and rose 5.2% in 2025 against 16.4% for the index.

There is less to measure now. Without quarterly member counts, outsiders have revenue, margins and the company’s own outlook, and less else, to judge the business by.

Questions people ask

When did Netflix stock split?

Netflix completed a 10-for-1 split on November 14, 2025, for holders of record on November 10. It also split 2-for-1 in February 2004 and 7-for-1 in July 2015, so one share from before 2004 is 140 shares now. The stock split page covers how splits work.

What is Netflix’s market cap?

$260.38 billion at the November 6, 2026 close of $63.41, using the 4,106,325,903 shares on the cover of its latest 10-Q, as of September 30, 2026.

Does Netflix pay a dividend?

No. It returns cash through buybacks instead: $10.78 billion in the first nine months of 2026.

How many subscribers does Netflix have?

The last exact figure is 301.63 million paid memberships at the end of 2024. Since 2025 it has reported the number only at milestones, not every quarter: its January 2026 letter said it passed 325 million in the last quarter of 2025.

Why did Netflix stock fall in 2026?

The filings do not give a reason, and we do not guess one. What they show is a 13.77% jump on February 27 when the Warner Bros. deal ended, then four earnings days in a row that fell, and a cut in the company’s 2026 ad revenue outlook in October.

Related

Netflix was one of the old FAANG names, not one of the Magnificent Seven. The ratios here are explained on earnings per share, price-to-book and free cash flow. For how hard a stock like this moves, see beta, volatility and earnings guidance.

This page is educational, not financial advice. Test every idea on your own charts before risking money.