Netflix Could Be Closer to Positive Cash Flow Than You Think
Netflix's (NASDAQ: NFLX) first quarter was anything but ordinary. It added nearly 16 million subscribers, more than twice the amount it forecast back in January.
And while subscriber additions got all the headlines, something else is going on below the surface: Netflix produced positive free cash flow. The $162 million in free cash flow for the first quarter is the first time Netflix produced cash instead of burning it since 2014.
"We would have been positive free cash flow without the recent COVID events," CFO Spence Neumann said on Netflix's first-quarter earnings call. He's referring mostly to production shutdowns that will push certain cash content expenditures into next year, as well as the spike in subscribers.
Source Fool.com
