Roku(NASDAQ) ROKU

Roku makes devices that let people stream movies and shows on their TVs. The company helps advertisers reach viewers who no longer watch traditional cable television. It also helps media companies find and bill customers for their streaming services.

What Roku Sells

• Platform Services: Digital advertising sales, subscription sharing, and branded buttons on remote controls.
• Streaming Devices: Hardware including streaming sticks, players, and audio products like soundbars and speakers.
• Roku-made TVs: Television sets designed and sold directly by the company, including the Select, Plus, and Pro Series.
• Smart Home Products: Security cameras, video doorbells, and lighting systems managed through a mobile application.

Strategic Moves and Growth

• Launched Roku-made TVs in 2023 to control both hardware and software design.
• Acquired Frndly TV in May 2025 to add a live-channel subscription service to its portfolio.
• Introduced Howdy in August 2025, an ad-free subscription service priced at $2.99 per month.
• Expanded the player lineup in 2025 by launching new Streaming Stick models in international markets like Canada and Mexico.

A Different Way to Watch

Roku uses its own operating system built specifically for television rather than adapting mobile software. This allows the company to run its platform on low-cost hardware while providing a unified home screen for all streaming apps.

Financial Performance

• Revenue reached $1.4 billion in Q4 2025, up 16.1% year-over-year.
• Net income was $80.5 million in Q4 2025, up 326.4% from a loss in Q4 2024.
• Free cash flow grew to $221.6 million in Q4 2025, up 188.5% from the previous year.
• Streaming hours on the platform increased to 145.6 billion hours for the full year 2025.

Bottom Line

Roku has transitioned from a hardware manufacturer into a massive digital advertising and content distribution platform. By owning the operating system, the company has become a central gatekeeper in the shift from cable to internet-based television.