Netflix (NASDAQ: NFLX) has reached a big turning point in its history as a company.

After years of building up a massive catalog of original and licensed content, spending more and more money every year to do so, Netflix is finally happy with its level of content spending. In other words, management doesn't think spending more on content will move the needle enough on subscribers and engagement to make the extra outlay worthwhile. At the same time, the prospects for a return to meaningful revenue growth in 2023 are looking strong.

Considering content is, by far, Netflix's biggest cash expense, the implication of keeping it at the same level in the future means free cash flow at Netflix is about to explode.

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Source Fool.com