Roku, Inc.
- Open
- 140.59
- Day high
- 141.99
- Day low
- 140.37
- Prev close
- 140.26
- Volume
- 1.9M
- Mkt cap
- $20.8B
- P/E (TTM)
- 103.3
- EPS (TTM)
- $1.36
- P/B
- 7.8
- P/S
- 4.2
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$61.7M over the last 3 months (0 open-market buys, 62 sales)
- 🏛Institutions accumulating (13F)
Roku, Inc. (ROKU) is a Communication Services company listed on NASDAQ. The stock is up 55% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 62 sales (SEC Form 4).
Roku, Inc. (ROKU) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 19 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ROKU earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 30, 2026 | $0.34 | $0.57 | +67.6% | $1.2B | +3.7% |
| Feb 12, 2026 | $0.28 | $0.53 | +89.3% | $1.4B | +17.1% |
| Oct 30, 2025 | $0.07 | $0.16 | +128.6% | $1.2B | -10.5% |
| Jul 31, 2025 | $-0.16 | $0.07 | +143.8% | $1.1B | -7.8% |
| May 1, 2025 | $-0.27 | $-0.19 | +29.6% | $1.0B | +1.3% |
| Feb 13, 2025 | $-0.41 | $-0.24 | +41.5% | $1.2B | +19.2% |
| Oct 30, 2024 | $-0.32 | $-0.06 | +81.3% | $1.1B | -7.1% |
| Aug 1, 2024 | $-0.43 | $-0.24 | +44.2% | $968M | +3.2% |
| Apr 25, 2024 | $-0.61 | $-0.35 | +42.6% | $881M | +3.9% |
| Feb 15, 2024 | $-0.52 | $-0.55 | -5.8% | $984M | +1.9% |
| Nov 1, 2023 | $-2.12 | $-2.33 | -9.9% | $912M | +6.9% |
| Jul 27, 2023 | $-1.26 | $-0.76 | +39.7% | $847M | +9.5% |
ROKU insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 7, 2026 | Collier Charlesofficer: President, Roku Media | Sell | 9,043 | $142.45 |
| Jul 7, 2026 | Collier Charlesofficer: President, Roku Media | Sell | 1,226 | $142.96 |
| Jul 7, 2026 | Collier Charlesofficer: President, Roku Media | Option | 10,269 | $49.59 |
| Jul 2, 2026 | HUNT NEIL Ddirector | Sell | 158 | $139.75 |
| Jul 2, 2026 | Banks Matthew C.officer: VP, CAO | Sell | 554 | $138.88 |
| Jul 2, 2026 | HUNT NEIL Ddirector | Sell | 462 | $141.30 |
| Jul 2, 2026 | HUNT NEIL Ddirector | Sell | 1,380 | $140.54 |
| Jul 2, 2026 | HUNT NEIL Ddirector | Option | 4,000 | $8.82 |
| Jun 16, 2026 | Jedda Danofficer: CFO & COO | Sell | 7,000 | $143.87 |
| Jun 12, 2026 | Rothrock Ray A.director | Grant | 1,027 | — |
| Jun 12, 2026 | Fyfield Maidirector | Option | 1,847 | — |
| Jun 12, 2026 | Fyfield Maidirector | Grant | 1,745 | $119.64 |
| Jun 12, 2026 | Hastings Jeffdirector | Grant | 1,027 | — |
| Jun 12, 2026 | HODRICK LAURIE SIMONdirector | Option | 1,847 | — |
| Jun 12, 2026 | HUNT NEIL Ddirector | Grant | 1,745 | $119.64 |
Source: ROKU SEC Form 4 filings, latest Jul 7, 2026. For informational purposes only — not investment advice.
See the full ROKU insider & 13F page →Roku, Inc. company profile
Overview
Roku, Inc. (NASDAQ:ROKU) is a leading streaming television platform company founded in 2002 and headquartered in San Jose, California. The company went public in September 2017 and has established itself as the dominant streaming operating system in North America. Roku operates a dual-sided business model, manufacturing streaming devices while also running a comprehensive streaming platform that connects viewers with content and advertisers with audiences. With over 90 million streaming households globally as of late 2024, Roku has positioned itself as a critical intermediary in the rapidly evolving television and entertainment landscape.
Business
Roku operates in the connected television (CTV) and over-the-top (OTT) streaming industry, which represents the shift from traditional cable and broadcast television to internet-delivered video content. The company's core offering is a streaming platform that allows users to access thousands of streaming channels and services through Roku-powered devices or smart TVs. The company operates through two primary business segments: **Platform Business (approximately 75-80% of revenue):** This segment generates revenue through digital advertising, content distribution fees, subscription revenue sharing, and other services. The platform serves as the operating system for Roku devices and licensed smart TVs, featuring the Roku Home Screen where users discover content. Key components include The Roku Channel, a free ad-supported streaming service that aggregates content, and various monetization tools for advertisers and content providers. The platform also facilitates subscription billing for premium services, taking a percentage of subscription revenues. **Player/Device Business (approximately 20-25% of revenue):** This segment involves manufacturing and selling streaming media players, smart TVs under the Roku TV brand, and audio accessories. These devices serve as the hardware gateway to access the Roku platform, though the company increasingly focuses on licensing its operating system to TV manufacturers rather than solely relying on proprietary hardware sales. The streaming industry has experienced massive growth as consumers "cut the cord" from traditional pay-TV services in favor of on-demand, internet-delivered content. Roku's platform aggregates content from major streaming services like Netflix, Disney+, and Amazon Prime Video, while also offering free, ad-supported content through The Roku Channel. This positions Roku as both a content discovery platform and an advertising-supported media company, competing with traditional TV networks for advertising dollars that are increasingly shifting from linear television to streaming platforms.
Revenue model
Roku generates revenue through multiple complementary streams within its two-segment business model: **Platform Revenue Streams:** The majority of Roku's revenue comes from its platform business, which monetizes its large user base through several channels. Digital advertising represents the largest component, where brands pay to display video ads, banner ads, and sponsored content across Roku's interface and The Roku Channel. The company sells advertising inventory both directly and through programmatic partnerships with demand-side platforms (DSPs) like The Trade Desk. Content distribution revenue comes from revenue-sharing agreements with streaming services, where Roku takes a percentage of subscription fees when users sign up for services through the platform. Subscription billing services generate ongoing fees as Roku processes payments for various streaming services. Additional revenue comes from branded content partnerships and promotional placements on the home screen. **Device Revenue Streams:** The hardware business generates revenue through direct sales of streaming players, Roku-branded smart TVs, and accessories. However, devices are increasingly viewed as a customer acquisition tool rather than a primary profit center, with the company often selling hardware at low or negative margins to grow the platform user base. **Margin Influencing Factors:** Several factors significantly impact Roku's profitability. Positive margin drivers include the secular shift from traditional TV to streaming advertising, increased engagement leading to higher ad inventory, growing scale enabling better advertiser rates, and operational leverage as platform revenue grows faster than expenses. The company benefits from network effects - more users attract more advertisers and content partners, creating a virtuous cycle. Negative margin pressures include macroeconomic advertising downturns, increased competition from other CTV platforms like Samsung TV Plus and Amazon Fire TV, content acquisition costs for The Roku Channel, and device manufacturing costs affected by supply chain disruptions and potential tariffs. International expansion currently pressures margins as the company invests in growth markets before achieving meaningful monetization.
Competitive moat
Roku's competitive moat is moderately strong, built primarily on scale advantages and network effects, though it faces meaningful competitive threats. The company's strongest defensive position comes from its dominant market share in North American streaming - it's the #1 TV operating system by hours streamed in the US, Canada, and Mexico. This scale creates powerful network effects where more viewers attract more advertisers and content partners, which in turn enhances the platform's value proposition for users. Key Moat Elements: Roku benefits from high switching costs once consumers integrate the platform into their viewing habits and subscribe to services through Roku's billing system. The company has developed proprietary data and targeting capabilities that advertisers value, particularly its first-party viewing data that enables precise audience targeting. The Roku Home Screen serves as valuable digital real estate, controlling content discovery for millions of users daily. Additionally, Roku has built strong relationships with both content providers and advertisers, creating ecosystem lock-in effects. Moat Vulnerabilities: However, Roku's moat faces significant challenges from well-funded competitors. Amazon Fire TV leverages Amazon's broader ecosystem and Prime membership base, while Samsung TV Plus and other smart TV manufacturers can pre-install their own operating systems. Google/YouTube TV and Apple TV bring substantial resources and integrated ecosystems. The streaming industry's rapid evolution means new technologies or business models could potentially disrupt Roku's position. International expansion also remains challenging against entrenched local competitors. The company's moat is strongest in its core North American markets where it has achieved critical mass, but becomes weaker in international markets where it lacks scale and faces established competitors. Overall, Roku maintains a solid but not impregnable competitive position that requires continuous innovation and investment to defend.
Risks & safety
Roku maintains a strong financial position with substantial margin of safety, though profitability remains inconsistent. **Liquidity and Solvency:** - Cash position: $2.26 billion in cash and short-term investments as of Q1 2025 - Current ratio: 2.86x, indicating strong short-term liquidity - Debt-to-equity ratio: 0.20x, representing minimal debt burden - Free cash flow: $137 million in Q1 2025, showing improving cash generation **Valuation Metrics:** - Price-to-book ratio: 4.08x, reflecting premium valuation - EV/EBITDA: Negative due to inconsistent EBITDA, though company achieved positive EBITDA in recent quarters - Graham net-net ratio: 7.92x, indicating substantial asset backing **Other Considerations:** - Revenue growth: Consistent platform revenue growth of 15-25% annually - Operating leverage: Platform margins around 52-54%, showing scalability - International investments: Current drag on profitability but potential future upside - Market position: Dominant share in core markets provides defensive characteristics
Recent development
Over the past few years, Roku has executed several strategic pivots and initiatives based on the earnings call transcripts: **Platform Monetization Enhancement:** Roku has significantly expanded its advertising capabilities through deeper integration with third-party demand-side platforms (DSPs), particularly The Trade Desk. The company launched a self-service Roku Ad Manager for small and medium businesses and developed new advertising products across its user interface, including innovative formats like Roku City and specialized content zones like Sports Zone. **Home Screen Innovation:** The company has transformed its home screen from a simple app launcher into a content discovery and monetization platform. This includes expanding video advertising on the home screen, creating themed content experiences, and leveraging the home screen as prime digital real estate for content promotion and advertising. **Hardware Strategy Evolution:** Roku launched its own line of Roku-branded smart TVs across multiple price tiers (Select, Plus, Pro series), selling over 1 million units in 2024. This represents a shift from purely licensing the Roku TV operating system to manufacturers toward direct hardware participation while maintaining licensing partnerships. **Subscription Business Growth:** The company has focused heavily on growing Roku-billed subscriptions, where it processes payments for various streaming services and retains a percentage of subscription revenue. This creates recurring revenue streams and deeper customer relationships. **International Expansion Focus:** Roku has concentrated its international efforts on the Americas (particularly Mexico and Latin America) and the UK, rather than pursuing broader global expansion. The company has achieved significant market share in Mexico and Canada while building scale for future monetization. **Operational Efficiency Initiatives:** Following a period of rapid hiring, Roku implemented cost discipline measures including hiring in lower-cost regions, investing in automation and AI, and maintaining modest operational expense growth while focusing resources on platform revenue growth rather than device sales.
ROKU company profile · for informational purposes only — not investment advice.
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