| Stockholders' Equity |
Stockholders’ Equity Equity Incentive Plans The Netflix, Inc. 2020 Stock Plan is a stockholder-approved plan that provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. Stock Option Activity Stock options are generally vested in full upon the grant date and are exercisable for the full ten-year contractual term regardless of employment status. The following table summarizes the activities related to the Company’s stock options: | | | | | | | | | | | | | | | | | Options Outstanding | | | | | | Number of
Shares | | Weighted-
Average
Exercise Price
(per share) | | | | | | Balances as of December 31, 2025 | 127,679,804 | | | $ | 36.07 | | | | | | Granted | 4,040,727 | | | 90.40 | | | | | Exercised | (7,791,928) | | | 14.42 | | | | | | Expired | (37,000) | | | 9.86 | | | | | | | Balances as of June 30, 2026 | 123,891,603 | | | $ | 39.21 | | | | | | | Vested and exercisable as of June 30, 2026 | 123,891,603 | | | $ | 39.21 | | | | | |
Restricted Stock Unit Activity The Company grants time-based restricted stock unit (“RSU”) awards and performance-based restricted stock unit (“PSU”) awards to certain executive officers. RSU awards vest quarterly over a three-year period subject to the executive’s continued employment or service with the Company through the vesting date. PSU awards have performance periods ranging from one to three years and vest depending on the Company’s achievement of predetermined market-based performance targets. The following table summarizes the activities related to the Company’s unvested RSUs and PSUs: | | | | | | | | | | | | | Unvested Restricted Stock Units | | Number of
Shares | | Weighted-
Average
Grant-Date Fair Value
(per share) | | Balances as of December 31, 2025 | 1,585,260 | | | $ | 98.68 | | Granted(1) | 1,245,383 | | | 82.91 | Vested(1) | (818,131) | | | 78.78 | | Forfeited | — | | | — | | | Balances as of June 30, 2026 | 2,012,512 | | | $ | 97.01 | |
(1) Amounts include 264,300 PSU awards that were granted and 528,600 PSU awards that vested based on the achievement of market-based performance targets during the performance period ended December 31, 2025, but were settled in the first quarter of 2026. Stock-Based Compensation Total stock-based compensation expense was $131 million and $272 million for the three and six months ended June 30, 2026, respectively, and $81 million and $153 million for the three and six months ended June 30, 2025, respectively. Stock Repurchases In March 2021, the Company’s Board of Directors authorized a share repurchase program for the Company’s common stock with no expiration date. The Board subsequently approved additional repurchase authorizations in September 2023 and December 2024, and most recently in April 2026, authorized the repurchase of an additional $25 billion of the Company’s common stock. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. During the three and six months ended June 30, 2026, the Company repurchased 52,934,688 and 66,431,786 shares of common stock, respectively, for an aggregate amount of $4.7 billion and $5.9 billion, respectively (excluding the 1% excise tax on stock repurchases as a result of the Inflation Reduction Act of 2022). As of June 30, 2026, $27.1 billion remains available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. As of June 30, 2026, there were no unsettled share repurchases. Direct costs incurred to acquire the shares are included in the total cost of the shares. Accumulated Other Comprehensive Income (Loss) The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation
Adjustments | | Net Investment Hedge Gains (Losses) | | Change in Unrealized Gains (Losses) on Cash Flow Hedges | | Change in Unrealized Gains (Losses) on Excluded Component of Fair Value Hedges | | Change in Unrealized Gains (Losses)
on AFS Securities | | Tax (Expense) Benefit | | Total | | (in thousands) | | Balances as of March 31, 2026 | $ | (274,555) | | | $ | (75,753) | | | $ | 127,554 | | | $ | (2,396) | | | $ | — | | | $ | (9,881) | | | $ | (235,031) | | Other comprehensive income (loss) before reclassifications | (7,278) | | | 14,083 | | | 120,138 | | | (5,261) | | | — | | | (29,821) | | | 91,861 | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | — | | | 48,521 | | | 11,384 | | | — | | | (13,852) | | | 46,053 | | | Net change in accumulated other comprehensive income (loss) | (7,278) | | | 14,083 | | | 168,659 | | | 6,123 | | | — | | | (43,673) | | | 137,914 | | | Balances as of June 30, 2026 | $ | (281,833) | | | $ | (61,670) | | | $ | 296,213 | | | $ | 3,727 | | | $ | — | | | $ | (53,554) | | | $ | (97,117) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation
Adjustments | | Net Investment Hedge Gains (Losses) | | Change in Unrealized Gains (Losses) on Cash Flow Hedges | | Change in Unrealized Gains (Losses) on Excluded Component of Fair Value Hedges | | Change in Unrealized Gains (Losses)
on AFS Securities | | Tax (Expense) Benefit | | Total | | (in thousands) | | Balances as of December 31, 2025 | $ | (193,615) | | | $ | (112,256) | | | $ | (389,289) | | | $ | (3,565) | | | $ | — | | | $ | 118,343 | | | $ | (580,382) | | Other comprehensive income (loss) before reclassifications | (88,218) | | | 50,586 | | | 505,368 | | | (17,355) | | | — | | | (124,544) | | | 325,837 | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | — | | | 180,134 | | | 24,647 | | | — | | | (47,353) | | | 157,428 | | | Net change in accumulated other comprehensive income (loss) | (88,218) | | | 50,586 | | | 685,502 | | | 7,292 | | | — | | | (171,897) | | | 483,265 | | | Balances as of June 30, 2026 | $ | (281,833) | | | $ | (61,670) | | | $ | 296,213 | | | $ | 3,727 | | | $ | — | | | $ | (53,554) | | | $ | (97,117) | |
The following tables summarize the changes in accumulated balances of other comprehensive income (loss) for the three and six months ended June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation
Adjustments | | Net Investment Hedge Gains (Losses) | | Change in Unrealized Gains (Losses) on Cash Flow Hedges | | Change in Unrealized Gains (Losses) on Excluded Component of Fair Value Hedges | | Change in Unrealized Gains (Losses)
on AFS Securities | | Tax (Expense) Benefit | | Total | | (in thousands) | | Balances as of March 31, 2025 | $ | (285,557) | | | $ | (12,200) | | | $ | 264,945 | | | $ | 5,771 | | | $ | 907 | | | $ | (59,601) | | | $ | (85,735) | | Other comprehensive income (loss) before reclassifications | 169,299 | | | (93,400) | | | (1,222,145) | | | (18,099) | | | (907) | | | 306,378 | | | (858,874) | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | — | | | 37,041 | | | 14,802 | | | — | | | (11,902) | | | 39,941 | | | Net change in accumulated other comprehensive income (loss) | 169,299 | | | (93,400) | | | (1,185,104) | | | (3,297) | | | (907) | | | 294,476 | | | (818,933) | | | Balances as of June 30, 2025 | $ | (116,258) | | | $ | (105,600) | | | $ | (920,159) | | | $ | 2,474 | | | $ | — | | | $ | 234,875 | | | $ | (904,668) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation
Adjustments | | Net Investment Hedge Gains (Losses) | | Change in Unrealized Gains (Losses) on Cash Flow Hedges | | Change in Unrealized Gains (Losses) on Excluded Component of Fair Value Hedges | | Change in Unrealized Gains (Losses)
on AFS Securities | | Tax (Expense) Benefit | | Total | | (in thousands) | | Balances as of December 31, 2024 | $ | (376,833) | | | $ | 32,400 | | | $ | 914,369 | | | $ | 9,233 | | | $ | 3,260 | | | $ | (220,267) | | | $ | 362,162 | | Other comprehensive income (loss) before reclassifications | 260,575 | | | (138,000) | | | (1,709,112) | | | (36,130) | | | (3,139) | | | 433,065 | | | (1,192,741) | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | — | | | (125,416) | | | 29,371 | | | (121) | | | 22,077 | | | (74,089) | | | Net change in accumulated other comprehensive income (loss) | 260,575 | | | (138,000) | | | (1,834,528) | | | (6,759) | | | (3,260) | | | 455,142 | | | (1,266,830) | | | Balances as of June 30, 2025 | $ | (116,258) | | | $ | (105,600) | | | $ | (920,159) | | | $ | 2,474 | | | $ | — | | | $ | 234,875 | | | $ | (904,668) | |
The following tables summarize the amounts reclassified from AOCI to the Consolidated Statements of Operations for the three and six months ended June 30, 2026: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | June 30, 2026 | | | | | | Revenues | | Cost of Revenues | | Interest and Other Income (Expense) | | Provision for Income Taxes | | Total Reclassifications | | | | | | (in thousands) | | Gains (losses) on available-for-sale securities | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | Gains (losses) on derivatives in cash flow hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | (47,630) | | | (891) | | | — | | | 11,220 | | | (37,301) | | | | | | | Gains (losses) on derivatives in fair value hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach | — | | | — | | | (11,384) | | | 2,632 | | | (8,752) | | | | | | | Total | $ | (47,630) | | | $ | (891) | | | $ | (11,384) | | | $ | 13,852 | | | $ | (46,053) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | | | June 30, 2026 | | | | | | Revenues | | Cost of Revenues | | Interest and Other Income (Expense) | | Provision for Income Taxes | | Total Reclassifications | | | | | | (in thousands) | | Gains (losses) on available-for-sale securities | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | Gains (losses) on derivatives in cash flow hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | (180,147) | | | 13 | | | — | | | 41,654 | | | (138,480) | | | | | | | Gains (losses) on derivatives in fair value hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach | — | | | — | | | (24,647) | | | 5,699 | | | (18,948) | | | | | | | Total | $ | (180,147) | | | $ | 13 | | | $ | (24,647) | | | $ | 47,353 | | | $ | (157,428) | | | | | |
The following tables summarize the amounts reclassified from AOCI to the Consolidated Statements of Operations for the three and six months ended June 30, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | June 30, 2025 | | | | | | Revenues | | Cost of Revenues | | Interest and Other Income (Expense) | | Provision for Income Taxes | | Total Reclassifications | | | | | | (in thousands) | | Gains (losses) on available-for-sale securities | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | Gains (losses) on derivatives in cash flow hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | (37,385) | | | 344 | | | — | | | 8,504 | | | (28,537) | | | | | | | Gains (losses) on derivatives in fair value hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach | — | | | — | | | (14,802) | | | 3,398 | | | (11,404) | | | | | | | Total | $ | (37,385) | | | $ | 344 | | | $ | (14,802) | | | $ | 11,902 | | | $ | (39,941) | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | | | June 30, 2025 | | | | | | Revenues | | Cost of Revenues | | Interest and Other Income (Expense) | | Provision for Income Taxes | | Total Reclassifications | | | | | | (in thousands) | | Gains (losses) on available-for-sale securities | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | $ | — | | | $ | — | | | $ | 121 | | | $ | (28) | | | $ | 93 | | | | | | | Gains (losses) on derivatives in cash flow hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount of gains (losses) reclassified from AOCI | 127,411 | | | (1,995) | | | — | | | (28,792) | | | 96,624 | | | | | | | Gains (losses) on derivatives in fair value hedging relationship | | | | | | | | | | | | | | | Foreign exchange contracts | | | | | | | | | | | | | | | Amount excluded from assessment of effectiveness and recognized in earnings based on amortization approach | — | | | — | | | (29,371) | | | 6,743 | | | (22,628) | | | | | | | Total | $ | 127,411 | | | $ | (1,995) | | | $ | (29,250) | | | $ | (22,077) | | | $ | 74,089 | | | | | |
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