10-Q · May 1, 2026
Roku delivered a strong Q1 2026 performance with revenue of $1.25 billion, up 22% year-over-year, and EPS of $0.57, significantly surpassing both estimates and prior periods. Management raised full-year revenue guidance…
Earnings analysis · 10-Q
ROKU earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
Roku delivered a strong third quarter, with revenue of $1.502 billion and diluted EPS of $1.20, both materially above consensus and higher than the prior quarter and prior year. Platform revenue grew 23% year over year…
Read full summary
Roku delivered a strong third quarter, with revenue of $1.502 billion and diluted EPS of $1.20, both materially above consensus and higher than the prior quarter and prior year. Platform revenue grew 23% year over year to $1.308 billion, while trailing-twelve-month free cash flow reached $795.749 million. The principal offset is limited forward visibility because Roku has not issued new financial guidance while the Fox transaction remains pending, with substantial regulatory, integration, dilution, and operating-restriction risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.2
What stood out
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Revenue accelerated and beat consensus
Revenue was $1.502 billion, up approximately 11.3% from $1.35 billion in the prior quarter and 24.1% from $1.21 billion in the prior-year quarter. Revenue exceeded the $1.412 billion consensus estimate by approximately 6.4%.
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EPS materially exceeded expectations
Diluted EPS was $1.20 versus $1.08 in the prior quarter and $0.16 in the prior-year quarter, exceeding the $0.55 consensus estimate by $0.65.
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Platform growth remained strong
Platform revenue reached $1.308 billion, up 23% year over year, indicating continued expansion in Roku’s higher-value platform business.
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Cash generation strengthened
Trailing-twelve-month free cash flow reached $795.749 million, according to the related earnings disclosure, supporting liquidity ahead of the proposed Fox transaction.
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Balance-sheet liquidity remains available
As of September 30, 2026, Roku had not borrowed against its $300.0 million revolving credit facility and was in compliance with all credit-facility covenants.
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No reported control weakness
The company reported that its disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2026, with no material change in internal control over financial reporting during the quarter.
What to watch
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Fox transaction remains regulatory risk
The proposed Fox merger remains subject to regulatory and other closing conditions. The DOJ’s Second Request extends the HSR waiting period until 30 days after substantial compliance, and the merger may be terminated if not completed by June 14, 2027, subject to extensions through December 14, 2027 and March 14, 2028.
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Potentially significant termination fees
If the merger is terminated under specified circumstances, Roku may owe Fox an $866.1 million termination fee; under specified regulatory circumstances, Fox may owe Roku a $1.2 billion fee.
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Merger limits operating flexibility
The filing identifies merger-related restrictions on capital allocation and operations, including restrictions on acquisitions, debt, capital expenditures, securities repurchases, dividends, and certain contracts while the Merger Agreement remains in effect.
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Dilution and consideration-value risk
Following the proposed transaction, Roku stockholders are expected to own approximately 27% of the combined company on a pro forma basis, and the stock consideration is fixed at 0.9693 Fox Class A shares plus $96.00 in cash per Roku share, exposing holders to Fox share-price volatility.
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Devices sales rely on four retailers
Retailer concentration increased: Amazon, Best Buy, Target, and Walmart accounted for 84% of Devices revenue in the three months ended September 30, 2026, versus 73% in the prior-year period.
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Devices profitability remains pressured
Devices gross margins were negative for both the three and nine months ended September 30, 2026, while management cites component costs, including memory chips, tariffs, shipping, and pricing pressure as potential drivers of further margin volatility.
Management's outlook
Management remains on track for the second-half 2026 forecast referenced in the proxy statement but did not provide a new financial outlook because of the pending Fox transaction.
Earlier filings 4
10-K · February 13, 2026
Roku shifted further toward a Platform-first model in fiscal 2025: total revenue rose 15% to $4.737 billion driven by Platform revenue growth of 18% to $4.145 billion, Streaming Hours increased 15% to 145.6 billion, and…
10-Q · August 1, 2025
Roku reported Q2 2025 revenue of $1,111,038,000, up $142,859,000 (14.8% YoY) and up $90,366,000 (8.9% sequentially). Gross margin improved to 44.8% and operating loss narrowed to -2.1%; GAAP diluted EPS turned positive…
10-Q · May 2, 2025
Roku reported Q1 2025 revenue of $1,020,672,000, up $139,203,000 (15.8% YoY) but down $179,328,000 (14.9% sequentially). Gross margin was 43.6% and operating margin was -5.7%; GAAP loss per share improved to $(0.19)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.