Netflix shares are off more than 16% in post-market trading after it released a Q2 report that shows it fell far short of the streaming subscriptions it had projected.

The streaming power added 160,000 domestic customers, well below the 500,000 it told investors to expect. It expects to add 300,000 in Q3, less than half of what Wall Street anticipated.

International added 1.52 million, short of the 2 million Netflix forecast. It expects to add 2 million in Q3, below forecasts for about 2.5 million.

At the end of June the company had 47.1 million domestic streaming customers and 36.1 million international ones.

Netflix CEO Reed Hastings said gross additions were “on target” but churn “ticked up slightly and unexpectedly” — which he attributes to press coverage of the end of a grandfathering period for a price increase.

“We are growing, but not as fast as we would like or have been,” he says. “Disrupting a big market can be bumpy, but the opportunity ahead is as big as ever, and we continue to improve every aspect of our business.”

Hastings warned that it has become “more challenging” for Netflix to expand into China due to changes in the regulatory climate there. “Disney’s streaming service, launched in conjunction with Alibaba, was closed down, as was Apple’s movie offering,” he says. “We continue to explore options and, in the meantime, have plenty of work to do in our newly opened markets.”

The company reported $41 million in net income, up 57.7% vs the period last year, on revenues of nearly $2 billion, up 32.8%. The top line was shy of the $2.11 billion that analysts expected. Earnings per share at 9 cents topped forecasts for 3 cents.

With growing expenditures for programming and international expansion, Netflix burned $254 million in cash in the quarter, down from $261 million in Q1. The company plans to add to its $2.4 billion in gross debt by raising additional capital in the high yield market by early 2017.