Reed Hastings to step down from Netflix board in June; Q1 revenue jumps 16% on subscriber growth

Netflix Chairman Reed Hastings will step down from the company’s board of directors in June when his term expires, the Netflix said on Thursday. 

Hastings said he plans to focus on philanthropy and other personal pursuits. He served as Netflix’s chief executive for more than two decades before stepping down in 2023. Hastings had taken over the CEO role from fellow co-founder Marc Randolph in the late 1990s. 

“My real contribution at Netflix wasn’t a single decision; it was a focus on member joy, building a culture that others could inherit and improve, and building a company that could be both beloved by members and wildly successful for generations to come,” Hastings said in a statement. 

“Mr Hastings’ decision to not stand for re-election is not as a result of any disagreement with the company,” Netflix said in an SEC filing on Thursday. In a statement, Hastings said Netflix changed his life. The company has not yet named a successor. 

Netflix announced Hastings’ departure alongside its quarterly earnings report, the first since the company withdrew its February offer to acquire Warner Bros. Discovery’s studio and streaming business. 

Q1 earnings 

On the other hand, the streaming giant reported strong first-quarter (Q1) performance, with revenue rising 16% year-over-year to $12.3 billion, or 14% on a foreign exchange-neutral basis. Growth was driven by higher subscriber additions, price increases and expanding advertising revenue. 

Operating income for the quarter increased 18% to $4.0 billion, while operating margin improved to 32.3% from 31.7% a year earlier. Both figures came in slightly above company forecasts due to stronger-than-expected revenue growth. 

Shares slip 9% 

Despite the upbeat results, Netflix shares fell nearly 9% to $98.32 in after-hours trading as investors reacted negatively to the company’s softer forward guidance. 

For the second quarter, Netflix forecast revenue growth of 13%, or 12% on an FX-neutral basis. The company also said content amortization growth would be weighted toward the first half of 2026, with the second quarter expected to record the highest year-over-year increase before easing to mid-to-high single-digit growth in the second half.