Roku, Inc.

Roku, Inc. Earnings Recaps

ROKU Communication Services 2 recaps
Q1 2026 May 1, 2026

Roku shares rallied 9.7% after the company delivered a Q1 result that outpaced expectations, highlighted by a 28% increase in platform revenue, substantial growth in ad and subscription businesses, and upside in both EBITDA and free cash flow margins. Management also guided higher on full-year platform revenue and EBITDA, while addressing investor concerns around device costs and memory pricing.

Key takeaways
  • Platform revenue rose 28% year over year in Q1, supported by the Olympics, Super Bowl, and 27% growth in advertising revenue.
  • Subscription revenue accelerated 30%, boosted by new premium partners, including Apple TV and Peacock, and surpassing 100 million streaming households.
  • EBITDA margin nearly doubled to almost 12%, with free cash flow of $148 million (free cash flow margin ~16%), the company’s second-highest on record.
  • Full-year 2026 platform revenue guidance increased by over $100 million, raising expected growth by approximately three points to 21%; EBITDA and margin guidance also moved higher.
  • Management indicated memory cost inflation is already reflected in device outlooks, with cost advantages helping to attract OEM partners; strategic flexibility is expected to sustain expanding margins despite market headwinds.
Full recap
Q3 2025 Oct 31, 2025

Roku reported strong Q3 2025 results, achieving positive operating income for the first time since fiscal 2021 and outlining a robust strategy for sustained double-digit platform revenue growth.

Key takeaways
  • Achieved $145 million in adjusted EBITDA, the highest ever for Q4, with a year-over-year EBITDA margin improvement of 200 basis points to approximately 8.4%.
  • Key monetization initiatives for platform revenue focus on enhancing the home screen, increasing ad demand, and expanding premium subscription offerings.
  • Implemented a net share settlement program, offsetting approximately 40% of gross dilution, with the lowest quarterly dilution recorded at 130 basis points.
  • Strong cash position with $2.3 billion in cash and short-term investments, coupled with trailing 12-month free cash flow of over $440 million.
  • Continued investment in Ads Manager and partnerships with major platforms, including Amazon, to drive ad revenue growth.
Full recap