In the first quarter of 2025, Netflix (NFLX, Financial) reported a significant increase in net cash from operating activities, totaling $2.8 billion, compared to $2.2 billion in the same period the previous year. The company's free cash flow also saw an uplift, reaching $2.7 billion from $2.1 billion in the first quarter of 2024. Netflix maintains its forecast of achieving approximately $8 billion in free cash flow for the full year 2025.
During the quarter, Netflix took strategic financial steps by repaying $800 million of senior notes, financed through proceeds from a refinancing initiative set for 2024. Additionally, Netflix repurchased 3.7 million shares, amounting to a total expenditure of $3.5 billion. The company still has $13.6 billion available under its current share repurchase authorization, indicating ongoing opportunities for share buybacks.
Ending the quarter, Netflix reported a gross debt of $15.1 billion and cash and cash equivalents amounting to $7.2 billion. Looking ahead to the second quarter, the company plans to address $1 billion in debt maturities, utilizing proceeds from an investment-grade bond deal executed last year, which are presently held in short-term investments. These financial maneuvers reflect Netflix's ongoing commitment to strengthening its balance sheet and enhancing shareholder value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 43 analysts, the average target price for Netflix Inc (NFLX, Financial) is $1,079.11 with a high estimate of $1,494.00 and a low estimate of $644.50. The average target implies an upside of 10.90% from the current price of $973.03. More detailed estimate data can be found on the Netflix Inc (NFLX) Forecast page.
Based on the consensus recommendation from 49 brokerage firms, Netflix Inc's (NFLX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Netflix Inc (NFLX, Financial) in one year is $630.16, suggesting a downside of 35.24% from the current price of $973.03. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Netflix Inc (NFLX) Summary page.
