| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 1.2K | 22.4% |
| Total Income | 1.2K | 22.4% |
| Expenditure | 1.2K | 11.0% |
| PBT | 88.65 | 318.8% |
| Net Profit | 85.70 | 412.4% |
| OPM | 4.14% | 9.80pp |
| NPM | 6.86% | 9.55pp |
| EPS | 0.58 | 405.3% |
Roku Reports Q1 2026 Revenue of $1.25 Billion, Net Income of $86 Million
01 May 2026 · 1 May, 1:39 am
Summary
Roku, Inc. delivered an outstanding first quarter in 2026, with total net revenue climbing 22% year-over-year to $1.25 billion. This growth was primarily fueled by a 28% increase in Platform revenue, which reached $1.13 billion, driven by strong contributions from Advertising and Subscriptions. The company significantly improved its profitability, reporting a net income of $86 million and a 165% surge in Adjusted EBITDA to $148 million, alongside an all-time high in Free Cash Flow (TTM). Management expressed confidence in sustaining double-digit Platform revenue growth and expanding margins, raising its full-year 2026 outlook for total net revenue to $5.5 billion and Adjusted EBITDA to $675 million.
Key Highlights
- 1
Total net revenue for the first quarter of 2026 reached $1.25 billion, marking a significant 22% increase year-over-year.
- 2
Platform revenue grew by 28% year-over-year to $1.13 billion, driven by strong performance in Advertising and Subscriptions segments.
- 3
The company achieved a net income of $86 million in Q1 2026, a substantial improvement from a net loss of $(27) million in the prior year period.
- 4
Adjusted EBITDA surged by 165% year-over-year to $148 million, reflecting increased profitability and margin expansion.
- 5
Total gross profit for the quarter was $565 million, up 27% year-over-year, with total gross margin improving by 1.6 percentage points to 45.2%.
- 6
Roku repurchased $100 million of shares in Q1 2026, contributing to a total of $250 million in repurchases since Q3 under its $400 million stock repurchase program.
- 7
The company announced a significant milestone of over 100 million Streaming Households worldwide using a device powered by the Roku TV operating system.
Management Comments
Anthony Wood and Dan Jedda
We delivered an outstanding first quarter. Platform revenue grew 28% year over year (YoY), driven by strength in Advertising and Subscriptions – two operating segments we have begun breaking out separately to give investors greater visibility into our business. We continued to increase profitability, generating Net Income of $86 million, Adjusted EBITDA of $148 million, up 165% YoY, and an all-time high of Free Cash Flow (TTM). We also repurchased $100 million of shares in Q1, for a total of $250 million since Q3, under our $400 million stock repurchase program. These results affirm our path to sustaining double-digit Platform revenue growth, expanding margins, and growing our north star metric of Free Cash Flow per share.
Anthony Wood and Dan Jedda
We are executing against our monetization initiatives and remain well-positioned to drive sustained double-digit Platform growth and achieve $1 billion of Free Cash Flow by 2028, if not sooner.
Informational and educational content only. Not investment advice.