Key Points
- Roku Q2 revenue rose 15% to $1.11 billion, led by an 18% jump in platform revenue.
- Net income hit $10.5 million, reversing a $34 million loss last year.
- Roku raised its 2025 outlook to $4.08 billion in platform revenue and $375 million in adjusted EBITDA.
Roku sent Wall Street into a frenzy late Thursday afternoon after the company posted an uptick in overall revenue during its second financial quarter (Q2) of the year that was largely spurred by higher interest in its advertising business.
The streaming hardware company posted total net revenue of $1.11 billion, up 15 percent from $968 million in the same quarter last year and an increase of nearly 9 percent on a sequential basis. Most of Roku’s earnings were attributed to its platform revenue, which includes subscription and advertising; platform-based income rose to $975 million, surpassing Roku’s own guidance for the period.
Sales of Roku devices and TVs earned the company $136 million, down 6 percent when compared to Q2 2024. That said, it was the first quarter out of several where Roku didn’t post a financial loss attributed to its hardware business — instead, the company broke even on that segment, according to its financial report.
Higher overall revenue coupled with lower operating expenses helped Roku generate a $10.5 million profit during Q2. Shares of Roku were priced at over $100 in after-hours trading, up from its close price of around $94 per share.
“Our outperformance was driven by video advertising and the successful acquisition of Frndly,” the company said in its shareholder letter. Roku credited the expansion of its partnerships with Amazon and Wurl, as well as deeper integrations with major demand-side platforms, for driving ad demand.
The Roku Channel remained the company’s second-most popular app in the United States by engagement, and it continued to hold the number three spot by reach globally. Streaming hours rose to 35.4 billion, up 5.2 billion from the same quarter last year.
With its hardware sales peaking some time ago, Roku stopped reporting the number of households with active Roku accounts earlier this year. At last count, Roku had around 90 million global users.
While devices remain a smaller and shrinking part of the business, Roku maintained its lead as the top-selling TV operating system in the United States, Canada and Mexico. The company said device gross profit broke even during the quarter, with margins improving due to the timing of incoming TV unit shipments.
Looking ahead, Roku said it expects third-quarter revenue of approximately $1.2 billion, representing 13 percent year-over growth, with platform revenue projected to rise 16 percent and device revenue to fall about 3 percent. For the full year, Roku raised its platform revenue outlook to $4.08 billion and its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) forecast to $375 million, citing continued momentum in advertising and subscription activities.
