Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

Revenue and operating margins continued to improve in the third quarter as subscriber growth slowed, a sign of the company’s success in pivoting toward prioritizing profitability over growth.

Netflix beat Wall Street’s expectations on both earnings and revenue, and added 35 million paid subscribers year-over-year, sending shares of the streaming giant up in after-hours trading.