Netflix Has $27 Billion Left for Stock Buybacks
Netflix has approximately $27.1 billion remaining in its stock repurchase authorization, which could allow it to retire about 8% of the company at current share prices. The streaming giant spent a record $4.7 billion on buybacks during Q2 2023 — more than triple what was spent in the previous quarter and representing one of the largest quarterly repurchases in its history. The increased capacity for stock buybacks stems from a combination of factors, including free cash flow generation and a $2.8 billion termination fee received after Netflix's failed attempt to acquire Warner Bros. This windfall boosted management’s 2026 free cash flow forecast to about $12.5 billion. The company also expanded its repurchase program by an additional $25 billion in April, with no expiration date. While the Q2 buyback was record-breaking, it exceeded Netflix's quarterly free cash flow of $1.5 billion and relied on one-time gains from the Warner Bros. deal. Management expects about $12.5 billion in annual free cash flow for 2023 — meaning that the remaining authorization could support several years of consistent buybacks rather than repeated record quarters.
Tickers: $NFLX
Topics: corporate finance Netflix stock buyback