Roku Q1 Earnings Raise Revenue Forecast

Roku, Inc. (NASDAQ: ROKU) reported stronger-than-expected first-quarter results in its shareholder letter on April 30, 2026, prompting management to raise its annual platform revenue forecast. The company cited accelerating advertising and subscription growth alongside expanding margins.

First-Quarter Results

For the quarter ended March 31, 2026, Roku reported total net revenue of $1.25 billion, up 22% year-over-year, and total gross profit of $565 million, a 27% increase. Platform revenue, driven by the services business, rose 28% to $1.13 billion, with a platform gross margin of 51.6%.

Roku broke out advertising and subscription revenue within its platform results for the first time. Advertising revenue grew 27% to $613 million, with a gross margin of 60.5%. Subscription revenue increased 30% to $519 million, with a gross margin of 41.1%.

Profitability improved significantly. Adjusted EBITDA reached $148 million, up 165% year-over-year, and net income was $86 million. Streaming hours totaled 38.7 billion, an 8% increase. The company repurchased $100 million of shares in the quarter, bringing total buybacks to $250 million since Q3 2025 under a $400 million program.

Management described the quarter as outstanding, highlighting the strength of advertising and subscription momentum and improving platform economics.

Raised Outlook and Guidance

Roku raised its full-year 2026 platform revenue forecast to $5.0 billion, reflecting about 21% growth. Total net revenue guidance increased to $5.5 billion, with adjusted EBITDA expected at $675 million. The company anticipates platform gross margin at the high end of 51% to 52%. Devices revenue is forecast near $535 million, with devices gross margin in the high 20% range. Operating expenses are projected to grow mid-single digits year-over-year, weighted toward the second half, assuming elevated memory costs in the second half while maintaining devices investment.

For the second quarter, Roku expects platform revenue growth of roughly 20% year-over-year, devices revenue to decline by high-single digits, total net revenue of $1.3 billion, total gross profit of $580 million, and adjusted EBITDA of $170 million.

The company attributed the raised platform revenue forecast to the combined strength of advertising and subscription revenue growth and improving platform margins. Roku’s performance benefited from new streaming-service launches and industrywide price increases. Management said the results affirm a path toward sustained double-digit platform revenue growth, expanding margins, and higher free cash flow per share.

"We delivered an outstanding first quarter," the company said in its shareholder letter.