Shares of Roku climbed as much as 13% in after-hours trading on Thursday after the streaming hardware maker beat Wall Street expectations for its fourth quarter.
Net income swung to a profit of $80.5 million, compared to a loss of $35.5 million a year ago, while total revenue grew 16% to $1.39 billion. Gross profit climbed 18% to $606.8 million.
Platform revenue climbed 18% to $1.2 billion, driven by continued strength in video advertising and streaming service distribution, while devices revenue rose 3% to $170.9 million, driven primarily by record premium subscription sign-ups and its Frndly TV acquisition.
Here are the quarter’s results:
Net Income: A profit of $80.5 million, compared to a loss of $35.5 million a year ago.
Revenue: $1.39 billion, up 16% year over year, compared to $1.35 billion expected by analyst estimates compiled by Yahoo Finance.
Earnings per share: 53 cents per diluted share, compared to 28 cents per share expected by analyst estimates compiled by Yahoo Finance.
Looking ahead, Roku is forecasting $5.5 billion in net revenue for 2026, or 16% year over year growth, as well as $2.44 billion in gross profit, $325 million in net income and $635 million in adjusted EBITDA.
Platform revenue is expected to grow 18% to $4.89 billion, with a gross margin of 51% to 52%, while devices revenue will grow in the low-single digits to $610 million, with gross margin in the negative mid-teens and roughly in line with 2025.
For the first quarter, the company anticipates total revenue will grow 18% to $1.2 billion, as well as $530 million in gross profit, $50 million in net income and $130 million in adjusted EBITDA. Platform revenue is expected to grow more than 21% year over year, while devices revenue will be decline in the mid-single digits year over year.
Operating expenses will be more heavily weighed in the second half of the year due to shifting retail distribution spend, though Roku still anticipates mid-single-digit year over year growth for the full year.
“We’re confident in our ability to sustain double digit platform revenue growth while continuing to grow profitability,” Roku CEO Anthony Wood told analysts.
Additionally, Roku executives predicted the company would reach $1 billion in free cash flow by 2028.
Roku executives address AI, consolidation
When asked about the potential impact of AI, Wood said that the technology would be “very positive” and a “significant opportunity” for Roku’s business.
“It’s very clear to me that AI is going to reduce the cost of content significantly over time. And as long form content costs come down, that’s going to grow engagement on our platform and we monetize engagement. That’s basically our business model is monetizing engagement,” Wood explained. “We view it as a powerful tailwind to our business. It’s not a disruptor for us and we’re integrating it across our entire technology stack. We’re applying AI across our platform to improve discovery, increase engagement and unlock major new monetization opportunities.”
He noted that Roku’s is using AI to improve recommendations, generate watch summaries beyond just plot overviews and help users discover content through its new conversational search function. It is also automating the company’s workflows and offering advertisers new tools to create video ads.
Wood also touted Roku as an essential partner to streamers and said that they don’t anticipate that relationship changing, regardless of industry consolidation.
“The streaming sector remains extremely robust,” Wood said. It is continuing to grow quite quite nicely and we remain well positioned to help our streaming and content partners, drive engagement, find viewers and sign up customers.”
Roku on track to surpass 100 million streaming households in 2026
Roku has more than 90 million streaming households and is on track to surpass 100 million in 2026. In 2025, total streaming hours grew 15% to 145.6 billion. In December, The Roku Channel also hit an all-time high, representing 6.3% of all TV streaming, up from 4.6% a year ago.
During the fourth quarter, the company posted record net adds for premium subscriptions, benefiting from holiday promotions and improvements to the Roku Experience, which now drives more than half of all subscription sign-ups. It also expanded 13 premium subscription offerings to Mexico, with additional launches planned for later this year.
It also plans to add more content to its new owned-and-operated streamer Howdy and take it to more streaming platforms as well as roll out bundles with premium subscriptions. Additionally, Roku expects the 2026 FIFA World Cup to drive premium subscriptions in Mexico and will continue expanding into additional international markets.
In addition to live scores and game reminders, Roku integrated YouTube TV into its sports experience during the quarter, which expanded its roster of partners, including DAZN Live Sports, FOX One, Paramount+, Peacock, Spectrum TV, and
Xfinity Stream. Subscription sign-ups driven by Roku Sports grew nearly 75% year over year in the fourth quarter. It also launch the sports experience in Mexico and Brazil.
On the devices side, Roku launched its new Hiro TV, which are designed, made and sold by the company, and introduced its refreshed lineup of Pro, Plus and Select Series Roku-made TVs with enhanced picture and sound quality, two new smart projectors and two new streaming players.
Outside the U.S., Roku brought its new streaming sticks to Canada, Mexico, Brazil and other markets in Latin America and introduced Roku-made TVs to Canada. It also announced new Roku TV model partnerships with Hyundai in Mexico, Colombia, and Peru; Noblex in Argentina; Finlandek in Colombia; and Vitado in the U.K. Roku works with 45 original equipment manufacturer (OEM) brands on its TVs across 17 countries and plans to continue to expand its scale, partnerships and retail distribution in 2026.
