stockCompensation News & Analysis

Netflix (NFLX) Holds $7.4 Billion Off-Balance Sheet in Options

Netflix, Inc. (NFLX) has $14.5 billion in reported debt, but an additional $7.4 billion in in-the-money stock options is off the balance sheet. As of year-end, the company had approximately 127.7 million vested options with an average exercise price of $36.07, while the stock is currently around $100. If treated as debt, Netflix's leverage would increase significantly. This raises questions about how investors conceptualize stock-based compensation, potentially affecting Netflix's market perception.