Research · Sep 3, 2026
[ROKU] Roku Thesis 2026: Platform Revenue Scales Toward Free Cash Flow Generation by 2028
Roku Inc. FY25 revenue $4.74B (+15%); op income essentially breakeven at -$5.6M (vs -$218M FY24); NI $88M (vs -$129M); EPS $0.59 (vs -$0.89). Op margin -0.1% (vs -5.3% FY24). FCF $478M (+125% YoY). Q4 platform revenue >$1.2B (+18%); FY platform revenue +18%. Q4 biggest premium subscription net adds quarter ever — plans to add more Tier 1 partners + roll out bundles + expand Howdy beyond Roku. Advertising deepened integration with leading demand-side platforms (DSPs) + scaled measurement / performance capabilities. International expansion: Mexico + Canada monetization progressing; Brazil + others building scale; UK expansion. AI integration across tech stack (discovery + engagement + monetization + viewer experience + advertising). Retail distribution: Best Buy + Target + Amazon expansion. TV OEM partnerships: TCL + Hisense. Achieved adj EBITDA breakeven in 2024 ahead of schedule; structural profitability inflection. $150M FY25 buyback ($250M remaining program). FY26 guide: Q1 platform revenue +21%; FY platform revenue +18%; adj EBITDA $635M (+50% YoY); margin 11.6% (+267bp); FCF > adj EBITDA (CapEx light); path to $1B+ FCF by end of 2028.