ROKU · Roku, Inc.

Roku's segment realignment splits the Platform business into Advertising, covering direct/programmatic video ads and UI-integrated ads, and Subscriptions, including end-user subscriptions, revenue shares, Premium Subscriptions, owned services, and branded app buttons on remotes. This change, announced March 10, 2026, aligns with updated internal reporting to the CEO and will debut in Q1 2026 results on April 30, 2026, without altering consolidated figures. Restated data in Exhibit 99.1 reveals Advertising drove Platform growth to $2,327.8 million in FY2025 from implied prior levels, with gross margins steady at 57.8%, while Subscriptions reached $1,817.1 million at 44.6% margin. Overall, FY2025 showed revenue expansion to $4,737.3 million, gross profit of $2,074.4 million (43.8% margin), near-breakeven operating loss of $5.6 million, and net income of $88.4 million. Adjusted EBITDA improved to $420.5 million (8.9% margin), reflecting operational leverage, with Q4 strength in operating income ($66.0 million) and free cash flow trailing twelve months at $483.6 million. Investors gain better visibility into high-margin Advertising versus lower-margin Subscriptions for future performance tracking.