Roku Q2 2026 Earnings Top Estimates on Ads
Roku Q2 2026 earnings beat on ad and subscription strength, producing record profits while withholding guidance and reducing near-term visibility.
KEY TAKEAWAYS
- Reported Q2 revenue of $1.4 billion and diluted EPS of $1.08, beating consensus.
- Platform revenue was $1.2 billion and ad revenue $673 million with ad gross margin 62.4%.
- Company withheld guidance and skipped an earnings call pending a reported $22 billion Fox acquisition.
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Roku, Inc. (ROKU) reported Q2 2026 earnings that exceeded expectations as advertising and subscription revenue accelerated, driving record profitability. The company said it would withhold financial guidance and skip an earnings call due to its pending sale to Fox.
Q2 Results and Profit
Roku posted total net revenue of $1.35 billion in the second quarter, a roughly 22% year-over-year increase that surpassed the Wall Street consensus of $1.30 billion. Diluted GAAP earnings per share rose to $1.08 from $0.07 a year earlier, well above the roughly $0.60 analysts had forecast. Net income reached $164 million and adjusted EBITDA hit $254 million, both company records, reflecting a sharp turnaround from $10.5 million in net income a year earlier.
Platform Growth and Margins
Platform revenue, which includes advertising and subscriptions, totaled $1.22 billion, up 25% year over year. Platform gross margin was 53.0%, and platform profit climbed 30% to $646.8 million. This platform strength drove improved unit economics and accounted for most of the company’s profitability gains.
Advertising revenue rose 25% to $673 million, while subscription revenue increased 26% to $548 million. Advertising gross margin expanded about 650 basis points to 62.4%. Roku’s platform was used in more than 100 million households, and streaming hours reached 37.9 billion, a 7% increase year over year. These usage gains supported higher ad yields and subscription monetization.
Device sales remained a smaller revenue component, with device revenue around $133 million, down about 1% year over year. Device gross margin was approximately 20.1%, aided by tariff refunds. The contrast between flat device sales and double-digit platform growth highlights Roku’s shift toward higher-margin services.
Fox Deal and Outlook Pause
In a press release on August 6, 2026, at 4:05 p.m. ET, Roku directed investors to its shareholder letter and referenced the definitive agreement announced on June 15, 2026. The Fox acquisition is a $22 billion cash-and-stock transaction, including debt, expected to close in the first half of 2027, subject to customary regulatory approvals and closing conditions. The company said it would not host an earnings call or provide financial guidance due to the pending transaction.
