Netflix Inc. said Thursday it will enact a 10-for-1 stock split, a move designed to make shares more affordable for its workforce and broaden employee ownership.
The split, approved by the company’s board, will multiply every outstanding share by 10 and proportionally reduce the per-share price.
Shareholders of record as of a yet-to-be-announced date will receive nine additional shares for each share held.
Trading on a split-adjusted basis is expected to begin shortly after.
The Los Gatos, California-based streaming giant framed the decision as a way to “put more Netflix stock in the hands of the people who build it every day.”
With the stock trading above $700 in recent sessions, executives said a lower price point removes a psychological barrier for rank-and-file employees participating in equity compensation programs.
Netflix has long tied a sizable portion of pay to restricted stock units and options
By lowering the nominal share price, the split effectively increases the number of units employees receive under existing grants, amplifying the value of their awards without changing the underlying economics for investors.
The company emphasized that the split will have no impact on its market capitalization or the proportional ownership of any investor.
It will, however, push Netflix’s outstanding share count into the billions, aligning it more closely with other mega-cap tech peers that have executed large splits in recent years.
Netflix shares rose modestly in after-hours trading following the announcement.
The company did not provide guidance on future capital-return plans but noted the split will simplify future equity grants and improve liquidity in the stock.
The split comes as Netflix continues to expand its subscriber base and diversify revenue through advertising and gaming initiatives.
Management said the decision reflects confidence in sustained growth and a commitment to aligning employee incentives with long-term shareholder value.
