Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results

Roku (NASDAQ:ROKU) released its quarterly earnings data on Thursday. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.23, Zacks reports. Roku had a net margin of 1.87% and a return on equity of 3.40%. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the firm earned ($0.19) earnings per share. Roku’s revenue for the quarter was up 22.4% on a year-over-year basis.

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

• Roku reported a strong Q1 with platform revenue up 28%, EBITDA margins nearly 12%, and $148M free cash flow (~16% margin), and it raised full?year platform revenue guidance by ~$100M while increasing EBITDA/FCF expectations.
• Advertising and subscriptions accelerated (ads +27%, subscriptions +30%), driven by Ads Manager adoption and expanded DSP partnerships (Amazon, DV360, Trade Desk), with management saying a majority of video delivery now flows through third?party programmatic buyers.
• Product changes are boosting monetization — the new home?screen tests show higher engagement and click?throughs (marquee ad visibility) and non?media advertisers now represent ~30% of Roku experience ad revenue, diversifying ad demand.
• The devices business faces pressure — device revenue fell ~16% with negative device gross margin, citing lower ASPs and rising memory costs; management says these headwinds were already modeled into guidance and they retain mix and distribution flexibility.
• Premium subscriptions are expanding (new launches like Apple TV, Peacock and Mexico) and helping scale, but subscription gross margin has compressed to ~41–42% due to mix, which management expects to hold for the year.

Roku Stock Performance

Shares of ROKU stock traded up $3.94 on Thursday, hitting $116.56. The stock had a trading volume of 6,376,115 shares, compared to its average volume of 2,271,425. The firm has a market capitalization of $17.18 billion, a price-to-earnings ratio of 204.49 and a beta of 2.00. The stock’s 50 day moving average is $100.40 and its 200-day moving average is $100.78. Roku has a 52-week low of $58.55 and a 52-week high of $120.00.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Benchmark reiterated a “buy” rating on shares of Roku in a research note on Wednesday, February 4th. Piper Sandler reiterated an “overweight” rating and set a $140.00 price objective (up from $135.00) on shares of Roku in a research note on Friday, February 13th. Stifel Nicolaus set a $160.00 target price on shares of Roku in a research note on Monday, March 2nd. UBS Group restated a “neutral” rating and issued a $110.00 target price on shares of Roku in a research note on Friday, February 13th. Finally, Pivotal Research upped their target price on shares of Roku from $135.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, February 16th. Twenty-one research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, Roku presently has an average rating of “Moderate Buy” and an average price target of $129.25.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q1 earnings and revenue beat consensus: Roku posted $0.57 EPS vs. ~$0.34 expected and revenue of $1.25B vs. ~$1.20B, marking y/y revenue growth of ~22% — a core reason shares moved higher. Roku (ROKU) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Advertising strength: Roku began breaking out ad revenue as its own line item; ad revenue rose ~27% to $612.7M this quarter, underscoring advertiser demand and higher monetization per user. Roku Posts Strong Q1 Results Powered By Advertising And Subscriptions Gains
• Positive Sentiment: Raising platform outlook: Roku raised its annual platform-revenue forecast, signaling confidence in advertiser spend — Reuters notes the company’s guidance lift sent shares notably higher in extended trading. Roku raises annual platform revenue forecast, shares climb
• Positive Sentiment: New/early growth drivers: Roku’s low-cost streaming service “Howdy” has surpassed ~1M subscribers, and Roku continues to add content partnerships (e.g., CW next?day streaming, WWE NXT on The Roku Channel), supporting user engagement and incremental revenue. Roku’s $3 streaming service, Howdy, reaches 1M subs
• Neutral Sentiment: Guidance and outlook: Roku updated Q2 and FY 2026 revenue guidance (roughly in line with consensus on reported items) and hosted a webcast to discuss results; investors will watch margin trends, platform monetization and ad RPMs in upcoming quarters. Listen to Conference Call

Insider Activity

In other news, CFO Dan Jedda sold 15,000 shares of the company’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $94.23, for a total value of $1,413,450.00. Following the completion of the transaction, the chief financial officer directly owned 85,115 shares in the company, valued at approximately $8,020,386.45. This represents a 14.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Anthony J. Wood sold 50,000 shares of the company’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $90.79, for a total transaction of $4,539,500.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 632,182 shares of company stock valued at $67,058,733 over the last ninety days. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Several institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. raised its holdings in shares of Roku by 1,354.4% during the second quarter. Geneos Wealth Management Inc. now owns 2,138 shares of the company’s stock worth $188,000 after purchasing an additional 1,991 shares during the period. Smartleaf Asset Management LLC raised its holdings in shares of Roku by 107.0% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,546 shares of the company’s stock worth $171,000 after purchasing an additional 799 shares during the period. Parallel Advisors LLC raised its holdings in shares of Roku by 12.9% during the third quarter. Parallel Advisors LLC now owns 1,597 shares of the company’s stock worth $160,000 after purchasing an additional 182 shares during the period. Aster Capital Management DIFC Ltd raised its holdings in shares of Roku by 383.5% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 1,373 shares of the company’s stock worth $149,000 after purchasing an additional 1,089 shares during the period. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of Roku by 97.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 1,282 shares of the company’s stock worth $139,000 after purchasing an additional 632 shares during the period. 86.30% of the stock is owned by institutional investors and hedge funds.

About Roku

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.