Sorry, dividend investors: You probably won’t be rushing to add Netflix (NFLX) to your portfolios.
During the streaming giant’s third-quarter earnings call on Thursday, CFO Spencer Neuman said that the company has “no plans to increase leverage to buy back stock or to issue a dividend.” Neuman said Netflix is still prioritizing “profitable growth by reinvesting in our business” and maintaining “ample liquidity.”
Wall Street expects Netflix’s full-year free cash flow to top $10 billion in 2026, according to Visible Alpha data. Still, Neuman said Netflix isn’t planning to change its capital allocation strategy. The company said Thursday that it repurchased $1.7 billion of its shares during the third quarter, with more than $3 billion of currently authorized buybacks remaining.
“In terms of [the] kind of future of free cash flow, well, that future of throwing off tens of billions of free cash flow, that would be a great future and …