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\begin{array}{l}\phantom{16)}\phantom{1}\\16\overline{)25}\\\end{array}
Use the 1^{st} digit 2 from dividend 25
\begin{array}{l}\phantom{16)}0\phantom{2}\\16\overline{)25}\\\end{array}
Since 2 is less than 16, use the next digit 5 from dividend 25 and add 0 to the quotient
\begin{array}{l}\phantom{16)}0\phantom{3}\\16\overline{)25}\\\end{array}
Use the 2^{nd} digit 5 from dividend 25
\begin{array}{l}\phantom{16)}01\phantom{4}\\16\overline{)25}\\\phantom{16)}\underline{\phantom{}16\phantom{}}\\\phantom{16)9}9\\\end{array}
Find closest multiple of 16 to 25. We see that 1 \times 16 = 16 is the nearest. Now subtract 16 from 25 to get reminder 9. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }9
Since 9 is less than 16, stop the division. The reminder is 9. The topmost line 01 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.