Greenlea LaneTrim-1.3%$20M5.41%Concentrated long-term value
SaberAdd+22.78%$4M2.45%Concentrated value
What managers sayⓘ
2026-10-13Colossus (Invest Like the Best / Business Breakdowns)NeutralDavid Vélez - Building Nubank and the Future of Global Banking - [Invest Like the Best, EP.495]Detail →
2026-09-25Scottish Mortgage (Baillie Gifford)BearThe Portfolio in MotionDetail →
2026-08-20Oakmark FundsBullBill Nygren, Portfolio Manager and Co-CIO U.S. on value investing in the AI eraDetail →
2026-07-23Oakmark FundsNeutralWhy the case for value investing remains strongDetail →
2026-07-10Horizon KineticsNeutralUnder the Hood Revived: What’s In Your Index? The Metamorphosis of the Mega-cap IT Company Business ModelDetail →
2026-07-01Baillie Gifford US Growth TrustBullBaillie Gifford US Growth Trust Valuation - 31 May 2026Detail →
Earnings Callsⓘ
Q3 2026October 20, 2026
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### At a Glance Netflix’s Q3 2026 results show that management believes its core strategy remains unchanged, but acknowledges that U.S. content execution needs improvement, and announced that Peter Rice will join as Chief Content Officer. Advertising revenue growth is strong but slightly below aggressive targets, while the company is expanding service value through content licensing and partnerships (e.g., TF1, Globo).
Key Data: Global and U.S. Q3 subscriber churn rates improved year-over-year and beat expectations; India Q3 viewing hours grew 24% year-over-year, driving subscriber growth and nearly 20% revenue growth; the advertising business is still on track for over 80% growth for the full year.
Business Progress: Management emphasizes that the core strategy remains unchanged—to become an “essential entertainment service” through original content, industry-leading discovery and distribution, and best-in-class monetization. The addition of Peter Rice aims to improve U.S. content execution, with the goal of creating more global hits. The company is expanding its content library through licensing agreements (e.g., Disney, Globo) and partnerships (e.g., France’s TF1), with the TF1 integration showing early positive signs, as viewing hours continue to grow and are incremental. The film release strategy is becoming more flexible, including partnerships with IMAX and a 45-day theatrical window for select major titles.
Guidance & Outlook: Management plans to provide full-year 2027 guidance during the Q4 2026 earnings call in January 2027. Financial targets remain unchanged: achieving double-digit revenue growth, expanding margins, and increasing free cash flow. The company believes all three revenue levers (subscriber growth, pricing, advertising) are effective and expects continued strong revenue growth in 2027.
Risk/Highlight Signals: Management explicitly stated that the advertising business is slightly below this year’s aggressive targets due to delays in some new product and partner integrations, but views this as a short-term cost for long-term strategic advantages. Additionally, the company recently conducted its largest layoff since 2022, which management described as a “forcing function” to optimize resource allocation and ensure long-term growth.