Netflix Inc. is no longer a hypergrowth company, so executives are trying to showcase an improvement that was once one of Wall Street’s prime worries about the company: free cash flow.
Netflix’s free cash flow expectations were buried behind better-than-expected subscriber losses, and a forecast for subscriber numbers to start growing again in the current quarter, which is expected in part when the the elevated churn rates in subscribers related to its recent price hikes end. But it is important to note, because the topic of free cash flow has long been a thorn in Netflix’s side when it comes to Wall Street.
“We’re now through the most cash-intensive part of that transition,” Netflix executives said in their shareholder letter, referring to the transition from running content from other studios to mostly showing its own.
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