Roku Q4 Earnings Top Estimates
Roku Q4 earnings beat estimates and the company raised 2026 revenue guidance, a catalyst likely to bolster ad-recovery positioning and investor confidence.
KEY TAKEAWAYS
- Roku reported Q4 revenue of $1.4B, up 16% YoY, driven by Platform revenue growth.
- Adjusted EPS was $0.53, beating Street consensus near $0.27 to $0.28.
- Company raised FY2026 revenue guidance to $5.5B and projected improving adjusted EBITDA margins.
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Roku Inc. (ROKU) reported stronger-than-expected fourth-quarter results on Feb. 12, 2026, and raised its 2026 revenue outlook, citing a recovering digital-ad market and growth in ad-supported streaming.
Fourth Quarter and Full-Year Results
Roku disclosed in its Shareholder Letter that total net revenue for the fourth quarter of 2025 reached $1.4 billion, up 16% year over year. Adjusted earnings per share were $0.53, surpassing analysts’ estimates of roughly $0.27 to $0.28. The company said, "We delivered excellent results in 2025, driven by consistent execution and the differentiation of our leading TV streaming platform."
Platform revenue, which accounted for most of the business, rose 18% year over year to $1.2 billion in the quarter, with a platform gross margin of 52.8%. Devices revenue increased 3% to $171 million but carried a negative 23% gross margin.
The company reported a fourth-quarter gross profit of $607 million and adjusted EBITDA of $169 million. Net cash provided by operating activities totaled $484 million, representing a 34.7% margin.
For full-year 2025, total net revenue rose 15% to $4.7 billion, with platform revenue up 18% to $4.1 billion. Gross profit climbed to $2.1 billion, streaming hours reached 145.6 billion (up 15%), and Roku posted net income of $88 million. The Roku Channel ranked as the No. 2 app by engagement in the U.S., accounting for 6.3% of TV streaming in December 2025. The company completed $150 million of repurchases under a $400 million program.
Guidance and Strategic Drivers
Roku’s 2026 guidance calls for first-quarter total net revenue of $1.2 billion, about an 18% increase year over year. Platform revenue is expected to grow more than 21%, while devices revenue is projected to decline mid-single digits. The company forecast total gross profit of $530 million and adjusted EBITDA of $130 million.
For full-year 2026, Roku projects total net revenue of $5.5 billion and platform revenue of $4.9 billion, with platform gross margin around 51% to 52%. Devices revenue is expected at $610 million with a negative mid-teens gross margin. Total gross profit is forecast at $2.4 billion, adjusted EBITDA at $635 million, and operating expenses are expected to grow mid-single digits year over year, weighted to the second half. The adjusted EBITDA margin is projected to expand by roughly 267 basis points.
Management set a 2026 target of 100 million streaming households globally and highlighted initiatives to drive scale and monetization. These include premium-subscription bundles, international expansion including Mexico, and event-driven advertising tied to major sports properties such as the FIFA World Cup 2026 and the Olympics. The company cited these as key levers to convert audience engagement into higher revenue and margins.
