Companies /Communication Services

Roku Inc - Class A

NASDAQ: ROKU Entertainment
$155.59
▼ $2.72 (−1.72%) today
Markets closed · 5:14pm ET

Q1 2025 Earnings

Reported May 1, 2025, 4:09pm ET · SEC source
$-0.19
Beat +24.75%
EPS · est. $-0.25
$1.0B
Beat +1.29%
Revenue · est. $1.0B
+14.6%
Beating market
ROKU vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0May 1May 2report 4:09pm ETearnings+1.8%−9.6%
−10%−5%0May 1May 2earnings+1.8%−9.6%
ROKU −9.6%S&P 500 +1.8%
−10%−5%0May 1May 2report 4:09pm ETearnings+2.1%−9.6%
−10%−5%0May 1May 2earnings+2.1%−9.6%
ROKU −9.6%NASDAQ +2.1%
−6%0+6%Apr 30May 9report 4:09pm ETearnings+1.4%−4.8%
−6%0+6%Apr 30May 9earnings+1.4%−4.8%
ROKU −4.8%S&P 500 +1.4%
−6%0+6%Apr 30May 9report 4:09pm ETearnings+1.9%−4.8%
−6%0+6%Apr 30May 9earnings+1.9%−4.8%
ROKU −4.8%NASDAQ +1.9%
−8.50%
Day of report
−1.84%
Next session
−1.01%
One week
+19.72%
30 days

S&P 500 over the same 30 days: +5.15%.

Did ROKU Beat Earnings? Q1 2025 Results

Roku posted a notably clean first quarter, beating Wall Street expectations on both the top and bottom lines as the streaming platform company continues to narrow its losses and scale its advertising business. The company reported a GAAP net loss of $0.19 per share against a consensus estimate of $0.25, a 24.75% beat, while revenue of $1.02 billion edged past the $1.01 billion estimate by 1.29% and grew 15.8% year over year. The primary engine behind the results was Platform revenue, which climbed 17% year over year to $880.82 million, fueled in part by The Roku Channel's emergence as the #2 app on the platform by engagement — with streaming hours up 84% year over year — reflecting the growing pull of Roku's AI-driven content recommendations. <a href="https://247wallst.com/investing/2025/07/31/live-roku-nasdaq-roku-earnings-analysis/">Adjusted EBITDA grew 37%</a> to $56.02 million, underscoring improving operational leverage. Looking ahead, Roku guided Q2 revenue of approximately $1.07 billion and reaffirmed full-year Platform revenue of $3.95 billion, while flagging tariff-related uncertainty as a near-term headwind for its Devices segment.

Key Takeaways
  • Platform revenue growth of 17% YoY driven by both video advertising and streaming services distribution
  • The Roku Channel became #2 app by engagement in U.S. with Streaming Hours growing 84% YoY
  • AI-driven content row on Home Screen driving video ad reach and subscription sign-ups
  • Premium Subscription sign-ups and prior-year price increases driving streaming services distribution growth
  • Advertising activities (ex-Media & Entertainment) outperformed U.S. OTT ad market
  • Scale exceeding half of U.S. broadband households
  • Streaming Hours of 35.8 billion, up 5.1 billion hours YoY

Forward Guidance & Outlook

For Q2 2025, Roku estimates total net revenue of approximately $1.070 billion (11% YoY growth), with Platform revenue expected to grow 14% YoY at roughly 51% gross margin, and Devices revenue projected to decline about 10% YoY with negative 10% gross margin. Total gross profit is expected at approximately $465 million and Adjusted EBITDA at approximately $70 million. For full-year 2025, Roku reaffirmed Platform revenue guidance of $3.950 billion and Adjusted EBITDA of $350 million, with full-year Platform gross margin expected at approximately 52%. Full-year net income (loss) is estimated at $(30) million. Devices revenue and gross profit loss are expected to remain consistent with 2024 levels. The company sees a path to achieving positive operating income in 2026, though it notes heightened macro uncertainty particularly around tariff-related impacts on Devices.

ROKU YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$300.0M$600.0M$900.0M$881.5M$1.0BRevenue$388.3M$445.0MGross Profit$-48,164,525$-57,730,000Operating Income$-18,780,638$-27,431,000Net Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

ROKU Revenue by Segment

Platform$880.8M+17.0%
Advertising
Subscriptions
Devices$139.9M+11.0%

Figures from SEC filings and company reports. Not investment advice.