Key Financial Data
- Q3 Total revenue: $1.5 billion (+24.1% year-over)
- Platform revenue: $1.31 billion (+22.9%)
- Platform gross profit: $697.1 million (+27.3%)
- Advertising revenue: $727.4 million (+23.0%)
- Advertising gross profit: $459.4 million (+33.0%)
- Subscriptions revenue: $580.9 million (+22.7%)
- Subscriptions gross profit: $237.7 million (+17.5%)
- Devices revenue: $193.7 million (+32.7%)
- Devices gross profit: -$48.6 million (compared to $22.9 million loss)
- Total gross profit: $648.5 million (+23.6%)
- Operating income: $164.1 million (+1,633.5%)
- Streaming hours: 39.9 billion (+9%)
- Roku-made TV share of U.S. TV unit sales: Approaching 8%
- Read more Q3 2026 earnings coverage
Streaming platform Roku continued to impress Wall Street with higher overall revenue spurred by continued upticks in advertising, subscriptions and hardware sales, the company reported on Monday.
During its third financial (Q3) quarter, revenue at Roku reached $1.5 billion, compared with $1.2 billion during the same period last year. Net income increased to $183.3 million from $24.8 million, while operating income climbed to $164.1 million from $9.5 million.
Roku said it was not holding a conference call with investors because of the company’s pending acquisition by Fox Corporation. Earlier in the day, Fox executives said the transaction is going smoothly, and the companies continue to work with federal regulators at the U.S. Department of Justice to close the deal in the first half of 2027. Shareholders of both companies approved the transaction last month.
Stock Price
Roku’s platform business, which includes advertising and subscription revenue, generated $1.31 billion, an increase of 23 percent. Advertising revenue grew 23 percent to $727.4 million, marking the company’s ninth consecutive quarter of double-digit growth.
Subscription revenue also increased 23 percent to $580.9 million, supported by Roku’s efforts to expand subscriptions billed directly through its streaming platform.
More than 80 percent of its in-stream video advertising impressions were delivered programmatically during the quarter, as it continued expanding integrations with third-party advertising platforms, Roku said. Political advertising was another contributor to growth during a busy midterm election season: Political advertising activity during the quarter exceeded the comparable period of the 2024 presidential election cycle, excluding fees associated with its OneView advertising platform.
The company also reported strong demand from entertainment advertisers, with the media and entertainment category posting its fastest year-over-year revenue growth in four years. Streaming hours across Roku’s platform reached 39.9 billion, an increase of 9 percent. The Roku Channel remained the second-most-engaged application on the platform in both the United States and internationally. Roku said it continues to expand its television interface and content discovery tools, including artificial intelligence-powered recommendations and new subscription bundles.
During the quarter, the company introduced more than 35 combinations of streaming subscription packages, offering discounts of up to 30 percent compared with purchasing services individually.
Its device business generated $193.7 million in revenue, an increase of 33 percent, as sales of Roku streaming players and company-manufactured televisions continued to grow. The segment recorded a gross loss of $48.6 million, more than double the $22.9 million loss reported a year earlier. Roku attributed the pressure on device profitability primarily to higher memory costs; in July The Desk was first to report Roku’s decision to increase the cost of its streaming sticks and pucks in order to offset higher component-related costs.
Roku said its own television sets accounted for nearly 8 percent of U.S. television unit sales during the quarter, citing retail tracking data from Circana. Total gross profit increased 24 percent to $648.5 million, while trailing 12-month free cash flow reached $795.7 million, up approximately 80 percent from a year earlier. The company ended September with approximately $2.52 billion in cash and cash equivalents.
The company said it remains on track to meet the second-half financial expectations outlined in its transaction proxy statement.
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