Netflix's High Labor Productivity Is A 'Strong Positive' For Shareholders,' Says Bullish Analyst

by Priya Nigam Benzinga Staff Writer

Zinger Key Points

Netflix’s revenue per FTE has remained “very high” between FY21 and Q2 of 2025.
The company’s FCF/FTE has also steadily grown during the period.
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Labor productivity is a leading indicator for share price performance, and Netflix Inc.'s NFLX revenue per full-time equivalent (FTE) has remained "very high" between 2021 and the second quarter of 2025, according to Needham.

The Netflix Analyst: Analyst Laura Martin maintained a Buy rating and price target of $1,500.

The Netflix Thesis: The company's revenue per FTE has risen from $2.628,128 in 2021 to $3,056,322 in the second quarter of 2025, representing growth of 16%,Martin said in the note.

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"These are strong numbers for public shareholders, in our view," she added.

With capital expenditure budgets rising due to investments in GenAI, it has become important to measure free cash flow per FTE as well, the analyst stated.

Netflix has steadily grown this metric as well, between 2021 and the second quarter of 2025, she added.

"We expect this trend to continue, which is a strong positive for NFLX public shareholders, in our view," Martin further wrote.

NFLX Price Action: Shares of Netflix had declined by 0.18% to $1,260.94 at the time of publication on Wednesday.

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