Roku(NASDAQ) ROKU

Roku, Inc. helps people find and watch content on their TVs. It makes it easy to switch between different apps and live news. The company also sells its own smart TVs and streaming sticks.

Streaming, Selling, and Subscribing

• Advertising: Digital and video ads sold through the user interface and streaming content; accounted for 50% of revenue in the three months ended June 30, 2026.
• Subscriptions: Sales of third-party plans and revenue shares from content partners; accounted for 40% of revenue in the three months ended June 30, 2026.
• Devices: Sales of streaming players, audio products, and smart home gadgets; accounted for 10% of revenue in the three months ended June 30, 2026.

Bigger Plans and Better Content

• Entered into a merger agreement with Fox Corporation in June 2026.
• Acquired the Frndly TV streaming service in May 2025 to expand its owned and operated services.
• Launched Howdy in August 2025 as a new subscription-based service.
• Expanded its hardware lineup by designing and selling Roku-branded TVs directly to consumers.

A Gateway to Digital Media

The company uses its hardware as a gateway to grow its active streaming households and high-margin software business. By providing a central platform for content, it captures revenue through both high-volume advertising and shared subscription fees.

The Latest Numbers

• Total net revenue was $1.35 billion in the three months ended June 30, 2026, up 22% year over year.
• Platform revenue reached $1.22 billion in the three months ended June 30, 2026, up 25% year over year.
• Adjusted EBITDA rose to $254.3 million in the three months ended June 30, 2026, up from $78.2 million year over year.
• Streaming hours hit 37.9 billion in the three months ended June 30, 2026, up 7% year over year.
• Free cash flow was $704.1 million for the trailing 12 months ended June 30, 2026, up from $392.0 million year over year.

Bottom Line

Roku has evolved from a hardware seller into a primary platform for digital advertising and subscription services. The business now prioritizes user engagement and platform monetization to drive long-term value.