What happened
Netflix (NFLX) is the world's largest paid streaming service.
NFLXNetflix·2026Q2 10-QPaidFiling score 41 · Moderate
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Netflix's $8.7bn first-half profit includes a $2.8bn break-up fee from the failed Warner deal
Q2 2026 10-Q: revenue $12.56bn (+13%). The $2.8bn termination fee, paid by Paramount Skydance on Warner's behalf, sits in first-quarter other income. Cash spent on content rose in the second quarter while operating cash flow fell, and much of the content obligation is off the balance sheet
Netflix (NFLX) reported revenue of $12,559.9m for the second quarter of 2026, up 13% from a year earlier, and net income of $3,401.4m. First-half net income was $8,684.2m — and Note 6 of the 10-Q filed in August says $2.8bn of that is a termination fee from the cancelled acquisition of Warner Bros. Discovery. The cash-flow statement shows a quarter in which content spending and buybacks exceeded operating cash.
In plain terms
A third of Netflix's profit in the first half did not come from making programmes. It is a payment received because a contract was broken. Cash from the core business over the same period fell against a year earlier.
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41 Filing score · Moderate
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FAQ
Is the termination fee in Q2 results?
No. The remaining figures and what they mean are in the subscriber section of this article.
Why did operating cash flow fall?
MD&A points to higher cash spent on content. The remaining figures and what they mean are in the subscriber section of this article.
What company was acquired in March?
The 10-Q says only that a business combination with a total purchase price of approximately $587m in cash was completed in March 2026; it does not name the company.
Where can I verify these numbers?
On SEC EDGAR: Netflix's Q2 2026 Form 10-Q (accession 0001065280-26-000212), statement of operations, cash-flow statement, Note 6 acquisitions, the content obligations note and the equity note.
How aiSwingX™ wrote this
- We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
- Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
- An editor reviews before publication; any later change is recorded in the revision history.
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Netflix Form 10-Q for Q2 2026: statement of operations, cash-flow statement, Note 6 'Acquisitions' (WBD termination, $2.8bn fee; March acquisition $587m), content obligations note, stockholders' equity note (repurchases, $25bn April 2026 authorization), MD&A other income and liquidity · SEC EDGAR · This article is not investment advice. Disclaimer