Netflix Inc. (NFLX) 10-K Red Flags
Risk signals extracted deterministically from Netflix Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (16)
- Going concern doubt: The term "going concern" appears in 2 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Material weakness in internal controls: The term "material weakness" appears in 24 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Operating cash flow exceeds net income: OCF is 1.35x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +27.9% to $443.5M, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- NEW: Impairment charge: Impairment charge appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 3 new risk-language term(s) detected in filing text: Restatement of financial statements, Impairment charge, Off-balance sheet arrangements.
- Ongoing high-severity risk language: Going concern doubt, Material weakness in internal controls.
- Market cap $327.12B at $77.65 per share.
- Trailing P/E 64.71, P/S 9.70, P/B 10.51.
- Price $77.65 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 42.89.
- Going concern doubt: The term "going concern" appears in 2 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
- Material weakness in internal controls: The term "material weakness" appears in 24 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest quarterly report (10-Q) filed Apr 17, 2026.
- 4 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Netflix Inc.; broad institutional reporting.
- Recent filers include Parallax Volatility Advisers, L.P., COGHILL CAPITAL MANAGEMENT LLC, Parallax Volatility Advisers, L.P..
- 2 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 18 recent 13G passive institutional ownership notices.
Full NFLX analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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