Netflix Will Introduce Advertising Tier To 15 New Countries In 2027; Adjusted Expected 2026 FCF Forecast To ~$12B Vs. Prior Projection Of $12.5B

Cash Flow and Capital Structure

Net cash generated from operating activities was $3.2B vs. $2.8B in the prior year period. Free cash flow (FCF)9 in Q3’26 totaled $2.9B vs. $2.7B in Q3’25. We have adjusted our expected 2026 FCF forecast to approximately $12.0B (vs. our prior projection of $12.5B) due primarily to the expected closing of a real estate transaction in Q4. We continue to expect 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, then returning excess cash to shareholders via repurchases. In Q3, we bought back 63.9 million shares for $4.8B, our largest quarter ever of stock repurchases, and we currently have $22.3B of capacity left in our remaining authorizations. We ended Q3 with gross debt of $15.3B and cash and cash equivalents of $8.2B. Gross debt was ~$1B higher than the end of Q2, reflecting a $1B bond deal we completed during the quarter in order to fund our upcoming $1B debt maturity in Q4.