Roku Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.66%.
Did ROKU Beat Earnings? Q1 2026 Results
Roku delivered a standout first quarter for fiscal 2026, with results that left Wall Street's expectations well behind on both the top and bottom lines. The streaming platform operator posted earnings of $0.57 per share, beating the consensus estimate of $0.35 by 64.41%, extending its streak of consensus EPS beats to four consecutive quarters. Revenue climbed 22.4% year over year to $1.25 billion, clearing the $1.20 billion consensus by 3.70%, as Platform revenue, now disaggregated into Advertising and Subscriptions segments, emerged as the primary engine of growth. Advertising revenue rose 27% year over year to $612.71 million, fueled by ad spend through third-party programmatic partners growing more than 40% year over year, while Subscriptions revenue advanced 30% to $518.52 million. On the profitability front, Roku posted GAAP net income of $85.70 million, compared to a net loss of $27.43 million in the year-ago period, with the company having recently crossed 100 million streaming households globally. Management raised its full-year 2026 outlook, now targeting total net revenue of $5.54 billion and Adjusted EBITDA of $675 million.
- Platform revenue grew 28% YoY driven by strength in both Advertising and Subscriptions
- Video advertising growth outpaced both U.S. OTT and digital ad markets
- Ad spend through third-party programmatic partners increased more than 40% YoY
- Number of advertisers using Roku Ads Manager more than doubled YoY
- Non-M&E brand ad spend reached nearly 30% of total RX advertising revenue, an all-time high
- Q1 was highest quarter ever for Premium Subscription sign-ups
- Streaming Hours grew 8% YoY to 38.7 billion
“We delivered an outstanding first quarter. Platform revenue grew 28% year over year, driven by strength in Advertising and Subscriptions – two operating segments we have begun breaking out separately to give investors greater visibility into our business.”
Roku CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Roku anticipates Platform revenue growing approximately 20% YoY and Devices revenue down high-single digits YoY, resulting in total net revenue of $1.295 billion (up nearly 17% YoY), total gross profit of $580 million, net income of $90 million, and Adjusted EBITDA of $170 million. For full year 2026, the company raised its outlook: Platform revenue expected to grow nearly 21% YoY to $5.0 billion, Devices revenue of approximately $535 million, total net revenue of $5.535 billion, total gross profit of $2.45 billion, net income of $360 million, and Adjusted EBITDA of $675 million (approximately 330 basis points of margin improvement YoY). Platform gross margin expected at the high end of 51%-52% range; Devices gross margin in the high negative 20% range. OpEx expected to grow mid-single digits YoY, weighted to the second half. The company targets $1 billion of Free Cash Flow by 2028 or sooner.
ROKU YoY Financials
ROKU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.