# Roku, Inc. (ROKU)

> Source: Nexqual · https://nexqual.com/ROKU · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Roku, Inc. (ROKU), nexqual.com/ROKU" · informational, not investment advice.

**Price:** USD 160.06 (+1.45% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 157.78 · day 156.78–160.1 · 52w 78.53–160.1 · market cap $23.8B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $5.21B, net income $355M (6.8% margin), free cash flow $710M (SEC filings).
- Valuation: P/E 66.9x (avg 185.3x at the last 1 fiscal year-ends).
- Earnings quality: non-operating income $114M vs operating income $273M over the last four quarters; P/E excluding non-operating income ≈94.9x (estimate: non-operating income taxed at the company's 8.4% effective rate).
- Analysts: Hold (mean 2.70 on a 1–5 scale) (27 analysts), mean target USD 162.33 (range 150–205).
- Total return with dividends: 1Y +62.9% vs S&P 500 +14.9%; 5Y -50.3% vs S&P 500 +80.3%.
- Next earnings: 2026-11-02, EPS estimate USD 0.53, revenue estimate $1.41B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $2.76B | $3.13B | $3.48B | $4.11B | $4.74B | $5.21B |
| Gross profit | $1.41B | $1.44B | $1.52B | $1.81B | $2.07B | — |
| Operating income | $235M | -$531M | -$792M | -$218M | -$5.6M | $273M |
| Net income | $242M | -$498M | -$710M | -$129M | $88.4M | $355M |
| EPS (diluted) | $1.71 | -$3.62 | -$5.01 | -$0.89 | $0.59 | — |
| Free cash flow | $188M | -$150M | $173M | $213M | $478M | $710M |
| Gross margin | 51.0% | 46.1% | 43.7% | 43.9% | 43.8% | — |
| Operating margin | 8.5% | -17.0% | -22.7% | -5.3% | -0.1% | 5.2% |
| Net margin | 8.8% | -15.9% | -20.4% | -3.1% | 1.9% | 6.8% |
| Revenue growth | +55.5% | +13.1% | +11.5% | +18.0% | +15.2% | — |
| Cash + short-term investments | — | $1.96B | $2.03B | $2.16B | $2.32B | — |
| Total debt | $89.9M | $80.0M | — | — | — | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 66.9x · P/E ex non-operating (est.) ≈94.9x · P/S 4.6x · P/FCF 33.5x · P/B 8.4x · FCF yield 2.99% · Earnings yield 1.49% · Buyback yield (TTM) 1.32%
P/E at fiscal year-ends: Dec 2025 185.3x.

## Analysts
Consensus Hold (mean 2.70 on a 1–5 scale), 27 analysts; mean target USD 162.33 (low 150, high 205).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-24 | Wedbush | Reiterated | Neutral | $155 |
| 2026-08-14 | Wells Fargo | Downgrade | Overweight → Equal-Weight | $167 → $165 |
| 2026-08-10 | Rosenblatt | Maintained | Buy | $160 |
| 2026-08-07 | UBS | Target raised | Neutral | $126 → $172 |
| 2026-08-07 | Guggenheim | Downgrade | Buy → Neutral | $145 → $160 |
| 2026-08-07 | Seaport Global | Downgrade | Buy → Neutral |  |
| 2026-07-17 | Citigroup | Target raised | Neutral | $120 → $157 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +62.9% | -50.3% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +63.1% | -13.0% |
| Volatility (annualized) | 40.0% | 66.2% |
| Max drawdown | -27.7% (Jan 2026→Feb 2026) | -87.4% (Oct 2021→Dec 2022) |

## Peers (Entertainment)
FWONK (Liberty Media Corporation - Ser) USD 91.15 -0.13% · FOXA (Fox Corporation) USD 68.27 +3.69% · NWS (News Corporation) USD 33.95 +2.01% · WMG (Warner Music Group Corp.) USD 31.69 +0.80% · TKO (TKO Group Holdings, Inc.) USD 177.72 -0.12% · SKYD (Skydance Corporation) USD 7.79 -1.02%

## More
Full page: https://nexqual.com/ROKU · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in ROKU's own 10-K filed 2026-02-13 (https://www.sec.gov/Archives/edgar/data/1428439/000162828026008114/roku-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Walmart (WMT) | "Many of our action ads are in partnership with companies such as Walmart, Shopify, and Instacart that connect their products with viewers and provide enhanced targeting and closed-loop measurement." |
| Partner | Amazon (AMZN) | "In the United States, the majority of our products and our licensed Roku TV partners' products are sold through brick and mortar retailers, such as Best Buy, Target, and Walmart, including their online sales platforms, a…" |
| Partner | Frndly TV | "We dedicate significant resources to build, maintain, and advance the Roku TV OS; to provide an industry-leading streaming platform for our viewers, content partners, and advertisers; to obtain content for our streaming …" |
| Partner | Shopify (SHOP) | "Many of our action ads are in partnership with companies such as Walmart, Shopify, and Instacart that connect their products with viewers and provide enhanced targeting and closed-loop measurement." |
| Partner | Best Buy (BBY) | "In the United States, the majority of our products and our licensed Roku TV partners' products are sold through brick and mortar retailers, such as Best Buy, Target, and Walmart, including their online sales platforms, a…" |
| Partner | Comcast (CMCSA) | "Similarly, some service operators, such as Comcast and Charter Communications (and their joint venture, Xumo, LLC), offer TV streaming applications and devices as part of their cable service plans and can leverage their …" |
| Partner | Netflix (NFLX) | "Some of our leading content partners, including Netflix, also have implemented similar features within their apps." |
| Competitor | Alphabet (Google) (GOOGL) | "Large companies such as Amazon, Apple, and Google offer TV streaming devices that compete with Roku streaming devices and those of our licensed Roku TV partners and the Roku TV OS." |
| Competitor | Apple (AAPL) | "Large companies such as Amazon, Apple, and Google offer TV streaming devices that compete with Roku streaming devices and those of our licensed Roku TV partners and the Roku TV OS." |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Advertising | $672.8M | 49.7% | +24.8% |
| Subscriptions | $548.2M | 40.5% | +25.6% |
| Devices | $133.7M | 9.9% | -1.4% |
| Total revenue | $1.35B | 100% | — |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Platform | $1.22B | 90.1% | +25.2% |
| — Advertising (part of Platform) | $672.8M | 49.7% | +24.8% |
| — Subscriptions (part of Platform) | $548.2M | 40.5% | +25.6% |
| Devices | $133.7M | 9.9% | -1.4% |
| Total revenue | $1.35B | 100% | — |

## Customer concentration

Period ended 2026-06-30: 12% of revenue from unnamed direct customers (10-Q, filed 2026-08-06).

## Company outlook (8-K filed 2026-08-06)

- "In Q2, we grew Platform revenue 25% year over year (YoY), well ahead of our outlook, driven by ongoing momentum in both Advertising and Subscriptions."
- "Smartly is expected to add incremental performance revenue by early 2027."
- "We expect these partnerships to contribute to Roku TV model unit sales volume in the second half of 2026."
- "As a result, S&M expense declined YoY in the first half of 2026, reflecting lower TV unit volumes, and we expect it to increase in the second half vs the first half as shipment volumes ramp."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.53 | $0.51 | +3.7% | $1.41B | 7 |
| Next quarter (ends 2026-12-31) | $0.78 | $0.74 | +5.2% | $1.62B | 7 |
| Current fiscal year (ends 2026-12-31) | $2.98 | $2.44 | +22.0% | $5.63B | 6 |
| Next fiscal year (ends 2027-12-31) | $4.01 | $3.69 | +8.8% | $6.32B | 9 |