Netflix issued a weaker-than-expected forecast for fourth-quarter profit on Tuesday, days after the streaming pioneer laid off 6% of its workforce and replaced two of its top programming executives.

Shares of Netflix fell nearly 7% to $63.99 in after-hours trading. The stock had fallen more than more than 40% in a year before the earnings report.

Third-quarter revenue rose 11.8% to $12.87 billion, in line with Wall Street forecasts, but the lowest rate of increase in nearly three years. The company forecast fourth-quarter net income of $2.79 billion and EPS of 67 cents, below the average analyst forecast of $3.07 billion and 73 cents.

Netflix reduced its advertising forecast for 2026 to roughly $2.7 billion, down from about $3 billion. Some ad product capabilities rolled out slightly slower than expected, executives said in their quarterly letter to shareholders.

The company that shook up Hollywood when it started streaming TV shows and movies two decades ago is now competing with a surge in viewership on YouTube and TikTok. Netflix has invested in video games, podcasts and live events to draw new viewers and increase the time members spend on the platform.

Wall Street analysts have questioned how the company will kick-start growth.

Looking ahead, Netflix said it would continue to expand its offerings through licensing more third-party content.

Beyond that, it will focus on the core service of streaming TV, film and live events and invest in original shows that “spark conversation, bring in more members and make us a ‘must-have’ service,” executives said in the letter.