Don't Expect a Netflix Dividend Anytime Soon

Core Insights - Netflix has no plans to increase leverage for stock buybacks or to issue dividends, focusing instead on profitable growth through reinvestment in the business [1][2] - The company reported a share repurchase of $1.7 billion in the third quarter, with over $3 billion remaining in authorized buybacks [1] - Wall Street anticipates Netflix's full-year free cash flow to exceed $10 billion by 2026, indicating strong future cash generation potential [1][2] Financial Strategy - CFO Spencer Neuman emphasized that there will be no changes to Netflix's capital allocation policy, despite the potential for significant future free cash flow [2] - The company aims to maintain ample liquidity while prioritizing reinvestment over shareholder returns [1][2] Market Context - Netflix's stock saw an increase of over 10% following the third-quarter earnings report [2] - Other major tech companies, such as Microsoft, Apple, Meta, Nvidia, and Alphabet, have a history of issuing dividends, contrasting Netflix's current strategy [2]