Shares of Roku (ROKU 6.33%) rallied on Friday after the streaming platform's fourth-quarter earnings topped investors' expectations.
As of 2:25 p.m. EST, Roku's stock price was up more than 9%.
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As more people shift from cable to streaming, Roku wins
Roku's revenue rose 16% year over year to $1.4 billion. The gains were fueled by solid growth in the company's video advertising and streaming distribution services.
Roku is the No. 1 TV platform in the U.S., Canada, and Mexico by hours streamed, with over 90 million logged-in households worldwide. That scale, combined with its first-party data, makes Roku's connected TV ad platform an attractive option for advertisers.
Roku's wide audience reach also makes it an increasingly important partner for streaming service providers. Roku saw record gains in premium subscriptions, driven by the addition of popular services like HBO Max and live-sporting events.
NASDAQ: ROKU
Key Data Points
Better still, Roku is growing more profitable as it expands. It generated operating income of $66 million, compared to a loss of $39 million in the prior-year quarter.
Roku's earnings per share of $0.53 also bested Wall Street's estimates of $0.28.
The trend toward streaming is accelerating
Roku anticipates further gains in 2026. Management sees full-year revenue rising to $5.5 billion, up from $4.7 billion in 2025.
"Looking ahead to 2026 and beyond, we're confident in our ability to sustain double-digit platform revenue growth while continuing to grow profitability," CEO Anthony Wood said.
