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\begin{array}{l}\phantom{25)}\phantom{1}\\25\overline{)37}\\\end{array}
Use the 1^{st} digit 3 from dividend 37
\begin{array}{l}\phantom{25)}0\phantom{2}\\25\overline{)37}\\\end{array}
Since 3 is less than 25, use the next digit 7 from dividend 37 and add 0 to the quotient
\begin{array}{l}\phantom{25)}0\phantom{3}\\25\overline{)37}\\\end{array}
Use the 2^{nd} digit 7 from dividend 37
\begin{array}{l}\phantom{25)}01\phantom{4}\\25\overline{)37}\\\phantom{25)}\underline{\phantom{}25\phantom{}}\\\phantom{25)}12\\\end{array}
Find closest multiple of 25 to 37. We see that 1 \times 25 = 25 is the nearest. Now subtract 25 from 37 to get reminder 12. Add 1 to quotient.
\text{Quotient: }1 \text{Reminder: }12
Since 12 is less than 25, stop the division. The reminder is 12. The topmost line 01 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 1.