Roku Delivers Revenue Gains in Q3

Roku reported third-quarter revenues of $1.2 billion, up 14 percent year-over-year, with platform revenues of $1.065 billion, up from $908 million in the year-ago period.

The company attributes the gain in platform revenues to the strength in streaming services distribution and video advertising activities. The platform gross margin was 51.5 percent, 50 basis points above the company’s outlook.

Roku achieved a positive operating income for the first time since 2021, with $9.5 million, a 126 percent year-over-year rise.

Streaming hours were 36.5 billion, up 4.5 billion hours year-over-year, and The Roku Channel remained the number two app on Roku by engagement in the U.S. and the number three app by reach globally. The Q3 report notes that nearly 90 percent of The Roku Channel’s engagement originated from Roku Experience entry points.

The company attributes The Roku Channel’s growth to its “large and diverse content offering, particularly within FAST.” The lineup expanded this year with channels for The First 48, Shark Tank, NYPD Blue and Law & Order.

In Q3, devices revenue was $146 million, down 5 percent year-over-year.

Looking ahead to Q4, the company expects total net revenues of $1.35 billion, representing 12 percent year-over-year growth. Platform revenues are projected to grow 15 percent year-over-year.

For the full year, the company is raising its outlook for platform revenues to $4.11 billion and adjusted EBITDA to $395 million.

“Looking ahead, we remain confident in our strategy and our long-term growth,” said Anthony Wood, founder and CEO, and Dan Jedda, CFO and COO. “We see significant opportunity to drive double-digit growth in platform revenue in 2026 and beyond while increasing profitability—which will lead to increasing free cash flow per share and long-term shareholder value.”