Netflix Outperforms Entertainment Rivals With $11.13 Billion EBITDA and 11.1% ROE Despite Slower 2.53% Revenue Growth

Netflix remains one of the strongest financial performers in the entertainment industry despite facing increasing competition from streaming services and media companies, according to a new industry comparison published by Benzinga.

The analysis found that while Netflix continues to lead in profitability and operational efficiency, its revenue growth has slowed compared to many of its peers.

The report compares Netflix with several major entertainment companies, including Disney, Spotify, Roku, Warner Music Group, TKO Group Holdings, IMAX, and Cinemark. The findings suggest that Netflix’s mature subscriber base and established business model continue to generate significant profits even as the streaming market becomes more competitive.

Netflix Leads in Profitability but Trails Industry Growth Rate

According to Benzinga, Netflix posted a Price-to-Earnings (P/E) ratio of 21.26, below the entertainment industry average of 52.66, indicating the stock may offer reasonable value relative to earnings. The company also recorded a Return on Equity (ROE) of 11.1%, well above the industry average of 4.28%, reflecting efficient use of shareholder capital.

The streaming giant generated $11.13 billion in EBITDA and $6.36 billion in gross profit, both substantially higher than industry averages. Benzinga noted that these figures demonstrate Netflix’s strong profitability and its ability to generate healthy cash flow from its core streaming business.

However, the report also highlighted a weaker area. Netflix’s 2.53% revenue growth was significantly below the industry’s 17.44% average, suggesting that subscriber expansion and overall sales growth have moderated as the platform matures.

Netflix currently serves more than 300 million subscribers worldwide, making it the largest subscription streaming platform globally. The company has also diversified its business in recent years through its ad-supported subscription tier, introduced in 2022, creating an additional revenue stream beyond traditional subscriptions.

Netflix continues to outperform many entertainment rivals in profitability, according to a new industry financial comparison. (Image via Netflix)

Strong Financial Position Supports Long-Term Outlook

Another positive takeaway from the analysis was Netflix’s financial stability. Among its top competitors, the company posted a debt-to-equity ratio of 0.47, indicating a relatively conservative debt position compared to several entertainment peers. A lower debt burden generally gives companies greater financial flexibility during changing market conditions.

While Disney, Spotify, Roku, and other entertainment companies continue investing heavily in streaming, live content, and advertising, Netflix appears to be relying on its established subscriber base, content library, and operational efficiency to maintain its market leadership.

The Benzinga report concludes that Netflix remains financially strong, with industry-leading profitability and a healthy balance sheet. Although slower revenue growth may present a challenge going forward, the company’s earnings performance and cash generation continue to distinguish it from many competitors.