3 Things Every Netflix Investor Needs to Know

Netflix (NASDAQ: NFLX) investors person had a unsmooth spell of it the past six months. Shares are down much than 38% from their highest astatine the extremity of past June arsenic of this writing. That sell-off accelerated astatine the extremity of past twelvemonth arsenic it agreed to get Warner Bros. Discovery (NASDAQ: WBD), and past released net with a disappointing 2026 outlook.

But semipermanent investors whitethorn beryllium holding connected with expectations for the banal to bounce backmost this year. Here are 3 things investors request to know.

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Last year's gross and net results benefited from a mates of cardinal factors that are improbable to repetition themselves successful 2026.

First, astir of 2025 saw favorable speech rates for the dollar. As a result, planetary income successful non-U.S. currency efficaciously brought successful much gross successful U.S. dollars for the institution than they different would have. Management says that the effect of overseas speech rates added astir $541 cardinal to its revenue. It volition thigh the spike successful overseas speech rates aft the archetypal 4th this year.

Second, Netflix raised prices for U.S. and Canadian customers aboriginal past year. It's improbable to enact different terms hike connected its biggest marketplace earlier the extremity of 2026. That said, successful its fourth-quarter missive to shareholders, absorption suggested that it has plans to rise prices successful immoderate markets.

Overall, management's 2026 outlook calls for gross maturation of 12% to 14%, versus the 16% maturation it produced past year.

While absorption is guiding for slower gross growth, it expects to proceed expanding its operating margin. After converting 29.5% of gross into operating profits successful 2025, absorption expects to scope a 31.5% operating nett borderline successful 2026.

That fig is successful enactment with Netflix's historical quality to nutrient operating leverage arsenic it scales. It whitethorn beryllium the astir appealing facet of investing successful Netflix. Management is capable to foretell its gross reasonably accurately and past program for its biggest expenses, namely contented costs, successful bid to deed a people operating margin.

Netflix and Warner Bros. Discovery whitethorn person agreed to a merger deal, but absorption doesn't expect it to adjacent until precocious 2026 oregon aboriginal 2027. Whether the woody volition get regulatory support is simply a large question mark. If it does, Netflix volition person to instrumentality connected important amounts of indebtedness to implicit the acquisition. That could measurement connected net results, arsenic involvement disbursal cuts into profits.