Roku beat Wall Street earnings expectations for its third quarter of 2025 on Thursday, swinging to a profit of $24.8 million, while revenue was in line, growing 14% year over year to $1.21 billion.
The overall results were boosted by its platform segment, which saw revenue grow 17% to $1.07 billion and profit climb 11% to $547.8 million, driven by strength in streaming services distribution and video advertising. Meanwhile, the devices segment was a drag, posting a loss of $22.9 million as revenue fell 5% to $146 million.
The company’s operating income also turned positive for the first time since 2021, hitting $9.5 million, while gross profit rose 9% to $525 million, and it raised its full-year outlook for platform revenue. But investors were hoping for a bigger beat and stronger forecast, with the streamer and hardware maker’s shares falling over 6%.
Here are the quarter’s results:
Net Income: A profit of $24.8 million, compared to a loss of $9.03 million a year ago.
Revenue: $1.21 billion, in line with analysts surveyed by Yahoo Finance.
Earnings per share: 16 cents per share, compared to 9 cents per share expected by analysts surveyed by Yahoo Finance.
Streaming Hours: 36.5 billion total streaming hours during the quarter, up 4.5 billion year-over-year.
The latest quarterly results come as Roku rolled out new features to its roughly 90 million streaming households, including an updated version of its voice search tool and enhancements to its sports offering. Executives said it would roll out a larger update to hits home screen in 2026 that is currently in the testing phase, which has been “going really well and getting a lot of positive feedback.”
Roku also said video advertising on its platform grew faster year over year than the broader U.S. streaming and digital ad markets, touted its recent ad partnership with Amazon, and noted that its streaming devices are in more than half of broadband households. Executives expressed confidence that the company would cross 100 million streaming households in 2026.
During the third quarter, nearly 90% of The Roku Channel engagement came from the Roku experience, most notably its Home Screen content row. It expanded its content lineup with FAST channels for “The First 48,” “Shark Tank,” “NYPD Blue” and “Law & Order.” Its original series “Solo Traveling with Tracee Ellis Ross” also became its most‑watched unscripted original. Additionally, Roku launched its new owned-and-operated streamer Howdy.
“We see significant untapped opportunity for a low-cost, ad-free streaming
service, and we are leveraging the power of our platform to drive cost-efficient sign-ups and engagement, similar to our success building The Roku Channel,” Roku CEO Anthony Wood and CFO Dan Jedda wrote in the quarterly shareholder letter.
When asked about industry consolidation during its third quarter earnings call, Wood said that Roku is an “essential partner” and will remain one regardless of whatever consolidation happens.
“The streaming sector is robust. It’s growing. It continues to grow nicely. And I think that’s just creating a lot of opportunities for us to continue to grow our business,” he added.
Looking ahead, Roku expects revenue of $1.35 billion and net income of $40 million for the fourth quarter of 2025 and revenue of $4.69 billion and net income of $50 million for the full year. It also anticipates gross profit of $575 million and adjusted EBITDA of $145 million in the fourth quarter and $2.04 billion in gross profit and $395 million of adjusted EBITDA for the full year.
Platform revenue is expected to grow 15% year over year in the fourth quarter of 2025. Excluding political advertising and its Frndly TV acquisition, its growth rate is expected to “step up slightly” from the third quarter. Devices revenue is expected to be roughly inline with the prior year quarter.
For the full year, Roku is raising its platform revenue outlook to $4.11 billion, or 17% year over year growth, and adjusted EBITDA to $395 million, reflecting its ongoing execution against monetization initiatives. Devices revenue and gross profit are expected to be roughly inline with 2024 levels.
“We remain confident in our strategy and our long-term growth,” Wood and Jedda added. “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.”
