Roku Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.98%.
Did ROKU Beat Earnings? Q4 2025 Results
Roku capped a landmark year with a blowout fourth quarter, posting adjusted EPS of $0.53 against a consensus estimate of $0.27 — a 95.36% beat — while revenue of $1.39 billion topped expectations by 3.01% and grew 16.1% year over year. The headline numbers were powered by the company's Platform segment, where 18% revenue growth reflected surging video advertising demand and streaming services distribution, with The Roku Channel climbing to a record 6.3% share of all U.S. TV streaming in December, making it the second-largest free ad-supported streaming app in the country. Perhaps more significant than the quarterly figures was the full-year milestone beneath them: Roku recorded its first profitable year since going public, generating $88.36 million in annual net income versus a $129.39 million loss in 2024 — a swing that analysts say challenges long-standing bearish narratives about the business model's viability. Management guided full-year 2026 revenue of $5.50 billion with Adjusted EBITDA of $635 million, implying further margin expansion as the company targets 100 million streaming households globally.
- Platform revenue grew 18% YoY driven by video advertising and streaming services distribution
- The Roku Channel reached 6.3% of all TV streaming in December 2025, up from 4.6% a year ago
- Record quarter for Premium Subscriptions net adds benefiting from holiday promotions
- Streaming Hours of 145.6 billion for the full year, up 15% YoY
- Video advertising on Roku grew faster YoY than the U.S. OTT and broader digital ad markets
- Adjusted EBITDA margin expanded 255 basis points for the full year
“We delivered excellent results in 2025, driven by consistent execution and the differentiation of our leading TV streaming platform. By expanding our Platform monetization over the last two years, we've unlocked new growth engines and achieved record-breaking financial performance.”
Roku CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Roku expects Platform revenue to grow more than 21% YoY with Devices revenue down mid-single digits YoY, resulting in total net revenue of $1.200 billion (up ~18% YoY), total gross profit of $530 million, net income of $50 million, and Adjusted EBITDA of $130 million. For full year 2026, the company guides total net revenue of $5.500 billion, Platform revenue of $4.890 billion (up 18% YoY), Devices revenue of $610 million (low-single-digit growth), total gross profit of $2.435 billion, net income of $325 million, and Adjusted EBITDA of $635 million (267 bps margin improvement). OpEx is expected to grow mid-single digits YoY, weighted to H2. The company expects to reach 100 million Streaming Households globally in 2026 and sees a clear path to fully offset dilution.
ROKU YoY Financials
ROKU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.