ROKU · Roku, Inc.

Roku delivered an outstanding first quarter, with total net revenue of $1.25 billion, up 22% year-over-year, driven by strong platform revenue growth of 28% to $1.13 billion. The company broke out two operating segments within Platform: Advertising and Subscriptions. Advertising revenue grew 27% to $613 million, with gross margin expanding 4.5 points to 60.5%, benefiting from increased programmatic ad spend and diversification beyond Media & Entertainment. Subscriptions revenue grew 30% to $519 million, driven by record premium subscription sign-ups and the inclusion of Frndly. Devices revenue declined 16% to $118 million due to lower player sales and promotional pricing, but Roku-made TV unit sales grew. Gross profit increased 27% to $565 million, with total gross margin improving 1.6 points to 45.2%. Operating expenses grew only 2% to $513 million, leading to operating income of $52 million versus a loss of $58 million a year ago. Net income was $86 million, compared to a net loss of $27 million. Adjusted EBITDA surged 165% to $148 million, with margin expanding 6.4 points to 11.9%. Free cash flow (TTM) reached an all-time high of $539 million. Management raised full-year 2026 guidance: total net revenue of $5.5 billion (up ~21% YoY), platform gross margin at the high end of 51-52%, and Adjusted EBITDA of $675 million, representing ~330 bps margin improvement. The company also repurchased $100 million of shares in Q1, bringing total buybacks to $250 million under the $400 million program. Roku surpassed 100 million streaming households and highlighted strategic initiatives including expanded DSP integrations, Roku Ads Manager growth, and the launch of Howdy on Prime Video and mobile.