Netflix Q2 revenue +13% to $12.6B; margin compresses 0.7pp as tech/marketing outpace growth

Filed July 17, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 18, 2025 · ~1 min read

Key Changes

• high

  $2.8B termination fee from WBD merger collapse drove 3,108% YoY surge in other income, materially boosting net income despite operating margin compression. WBD chose Paramount Skydance instead; Netflix terminated all related financing arrangements.

  MD&A: WBD transaction termination verify on EDGAR →
• high

  Operating margin fell 0.7pp YoY to 33.4% as technology and development (+22%) and sales and marketing (+16%) expenses grew faster than revenue (+13%), reversing prior year's 6.9pp expansion. Driven by advertising sales headcount and product development.

  MD&A: Operating margin verify on EDGAR →
• high

  Content obligations rose $4.1B YoY to $25.1B, with off-balance-sheet commitments up 28% to $19.6B. Signals continued aggressive content acquisition and production commitments for future periods.

  Notes: Content obligations verify on EDGAR →