Netflix shares dropped 9% after the streaming giant released its first-quarter earnings report and announced a significant change in governance, with Reed Hastings, Netflix’s co-founder and current chairman, exiting the board in June when his term expires.
Netflix said, “Reed Hastings has informed us that he will not stand for re-election to our Board when his current term expires at the Annual Meeting in June, in order to focus on his philanthropy and other pursuits. Reed built a culture of innovation, integrity and high performance that defines who we are today.”
Hastings stepped down from his CEO position in 2023. Greg Peters, who had been serving as COO, took on the co-CEO role alongside Ted Sarandos.
Hastings stated in the company’s shareholder letter:“Netflix changed my life in so many ways, and my all‑time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service. 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. A special thanks to Greg and Ted, whose commitment to Netflix’s greatness is so strong that I can now focus on new things.”
Greg Peters, Netflix co-CEO, said: “Reed will always be Netflix’s founder and biggest champion—he is a part of our DNA. His vision, entrepreneurship, and steadfast commitment to our values have shaped every stage of our journey and continue to shape how Ted and I lead Netflix today.”
Moving forward, Netflix said, “We have a clear strategy and strong conviction in our long runway of growth.”
The company recorded earnings of $12.25 billion in the first quarter, a 16% increase from the $10.54 billion reported in the same quarter last year.
Netflix reported a net income of $5.28 billion, or $1.23 per share, nearly doubling the $2.89 billion, or 66 cents per share, it reported during the same period last year.
The company said it expects second-quarter revenue to increase 13%, adding that it expects the second quarter to have the highest year-over-year content amortization growth rate in 2026, before lowering in the second half of the year.
By CEO NA Editorial Staff
