The news: Netflix reported Q2 earnings on Thursday, with revenue growth in the double-digits—but the announcement didn’t resolve questions about whether the platform can sustain engagement and time spent. Revenue growth also slowed, sparking investor concern.

By the numbers:

• Overall revenues: $12.6 billion, +13.4% YoY
• Operating income: $4.2 billion, +11% YoY
• Viewing hours: +2% YoY

Netflix expects that it will double its ad revenues to approximately $3 billion this year.

Netflix’s problems: Despite Netflix’s revenue gains, investors are becoming more concerned about slowing engagement and flattening time spent. And while viewing hour growth of 2% was slightly above Q2 2025’s 1.5%, that may not be enough to ease concerns that Netflix’s engagement is stalling.

• Netflix’s recent business review noted that the platform’s subscriber engagement is “showing signs of decline,” per the Wall Street Journal.
• Engagement struggles are evident in viewership data; Bloomberg recently reported that viewership for original Netflix series drops off significantly after the first season, with some shows losing as much as 70% of their viewers in the second season.