Roku (NASDAQ:ROKU) Releases Earnings Results, Beats Estimates By $0.25 EPS

Roku (NASDAQ:ROKU) released its earnings results on Thursday. The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25, FiscalAI reports. Roku had a return on equity of 3.42% and a net margin of 1.87%.The business had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same quarter in the previous year, the company posted ($0.24) earnings per share. The company’s revenue for the quarter was up 16.1% compared to the same quarter last year.

Here are the key takeaways from Roku’s conference call:

• Roku posted record 2025 financials—Platform revenue grew 18% (>$1.2B), Q4 Adj. EBITDA was $169M, FY free cash flow was $484M—and guided to $635M Adj. EBITDA for 2026 with a path to >$1B FCF by 2028.
• Management views AI as a major tailwind, applying it to improve discovery, ad measurement and creative, and to scale Roku Ads Manager to unlock a large SMB ad market while deepening integrations with multiple DSPs (including Amazon).
• Roku is testing a new home screen and new ad units (mostly sold direct today) aimed at increasing engagement and monetization, with rollouts and format experiments planned through 2026.
• The company is diversifying distribution after Walmart’s house?brand shift—expanding OEM and retail partnerships (TCL, Hisense, Pioneer at Best Buy, Target Roku TVs), shifting some TV production to Mexico to lower costs, and targeting to exceed 100 million streaming households.
• International monetization is early-stage—Canada and Mexico are beginning to drive revenue (ads and subscriptions), Brazil is scaling but ad markets lag, and owned subscriptions like Howdy and Frndly are growing but remain nascent.

Roku Price Performance

ROKU stock opened at $90.06 on Friday. The company’s 50 day simple moving average is $103.95 and its 200-day simple moving average is $98.86. Roku has a 12 month low of $52.43 and a 12 month high of $116.66. The firm has a market capitalization of $13.31 billion, a PE ratio of 158.00 and a beta of 1.99.

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 50,000 shares of the firm’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $90.79, for a total transaction of $4,539,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $96.48, for a total value of $192,960.00. Following the completion of the transaction, the director directly owned 7,782 shares of the company’s stock, valued at approximately $750,807.36. This trade represents a 20.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 234,790 shares of company stock worth $24,224,759 in the last quarter. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Institutional investors have recently modified their holdings of the company. AQR Capital Management LLC boosted its position in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after acquiring an additional 1,897,407 shares during the last quarter. Alyeska Investment Group L.P. raised its holdings in Roku by 380.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 882,915 shares of the company’s stock valued at $95,787,000 after acquiring an additional 699,336 shares during the last quarter. Duquesne Family Office LLC lifted its stake in shares of Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock worth $96,723,000 after purchasing an additional 606,900 shares during the period. Woodline Partners LP acquired a new stake in shares of Roku during the third quarter worth $38,814,000. Finally, Man Group plc grew its position in shares of Roku by 379.0% in the second quarter. Man Group plc now owns 456,708 shares of the company’s stock valued at $40,140,000 after purchasing an additional 361,357 shares during the period. Institutional investors and hedge funds own 86.30% of the company’s stock.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q4 top? and bottom?line beat: Roku reported $0.53 EPS vs. $0.28 expected and revenue of ~$1.39B (up 16% y/y), signaling improving operating leverage and a move back to profitability for the quarter. Roku stock surges on earnings beat, record quarter for premium subscriptions
• Positive Sentiment: Raised FY revenue outlook above Street: Roku guided 2026 revenue (~$5.5B) above consensus and flagged an advertising rebound — a key driver for platform revenue growth and valuation re?rating. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Platform monetization initiatives: Management plans premium subscription bundles, wider rollouts of its $3 “Howdy” service, and more premium partnerships (HBO Max cited), which should boost ARPU and higher?margin revenue mix. Roku to launch streaming bundles
• Positive Sentiment: Analyst upgrades and price?target increases: Multiple firms upgraded/reaffirmed buy/overweight ratings and raised targets (Wells Fargo, Rosenblatt, Needham), supporting positive sentiment and potential upside. Analyst actions on Roku
• Neutral Sentiment: Company investor materials and call posted — the webcast and earnings letter supply details needed to model ad recovery cadence and bundle economics; useful but not a market mover by itself. Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider selling: CEO Anthony Wood disclosed a sale of 50,000 shares (~$4.54M), which can create short?term selling pressure or cautious investor reaction. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability and valuation noise remain: despite the quarter, Roku still reports a small negative net margin and negative ROE on the year; some models expect negative FY EPS — keeping investors focused on whether ad recovery and bundles materially lift margins. MarketBeat Roku Summary

Wall Street Analysts Forecast Growth

ROKU has been the subject of several recent analyst reports. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday. Weiss Ratings reissued a “sell (d-)” rating on shares of Roku in a research note on Thursday, January 22nd. Wall Street Zen upgraded Roku from a “hold” rating to a “buy” rating in a research note on Sunday, December 7th. Moffett Nathanson reissued a “neutral” rating and issued a $100.00 target price on shares of Roku in a report on Friday. Finally, Wells Fargo & Company upped their price target on shares of Roku from $116.00 to $137.00 and gave the stock an “overweight” rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $123.85.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.