Netflix shares fall after results raise growth concerns

Netflix shares fell as much as 8 percent on Thursday after results disappointed investors already concerned about slowing engagement at the streaming company.

The Los Gatos, California-based company is facing strong competition from YouTube, TikTok and other short-form content providers. Netflix reported $3.4 billion in net profit for April to June, up more than 9 percent from the same period a year earlier. Revenue was $12.56 billion, slightly below analyst projections.

That revenue figure was a 13.4 percent rise from a year earlier, the lowest growth rate in nearly three years. Netflix expects growth to slow further to 11.7 percent in the third quarter, adding to investor concern.

Netflix has not issued a subscriber-count update since the first quarter of 2025, saying the metric that was once closely watched is too volatile. The company nevertheless said subscribers watched 97 billion hours of content in the first half of the year, 2 percent more than in the same period a year earlier.

The company has been broadening its entertainment offer, most recently with shorter-form video, after moving into live events, podcasts and gaming. Co-CEO Greg Peters told analysts on Thursday that Netflix would keep expanding its range of entertainment, including live content, video, podcasts, cloud content and TV games. He said the different formats support different subscriber needs.

Netflix signed licensing deals in July with several media publishers for short-form video content as it tries to compete with TikTok and YouTube. From August 3, subscribers in the United States, Canada, the United Kingdom, Ireland, Australia and New Zealand are due to get access to content as short as two minutes from Penske Media, BuzzFeed Studios, Conde Nast, Hearst Magazines and People Inc.

YouTube surpassed Netflix in average daily viewing time in 2025, according to research firm Digital i, cited by TechCrunch. TikTok started narrowing the gap in 2024, when eMarketer data showed US adults were spending nearly as much time on the app as on Netflix.

Netflix said it still has room to grow. Chief financial officer Spencer Neumann told analysts that the company is entertaining an audience approaching one billion people and estimates that it has about 5 percent of global TV viewing share.

The source also said Netflix abandoned an effort in February to buy Warner Bros. Discovery after a tense bidding war with Paramount Skydance, which ultimately agreed to buy Warner Bros. Discovery in a deal worth $110 billion including debt. Netflix said a live performance by K-pop group BTS drew more than 18 million viewers in March. Its animated series "KPop Demon Hunters" won an Oscar for best animated feature this year.

Netflix launched an ad-supported subscription tier in 2022, but it does not offer a free option.