VALUATION HIGHLIGHTS

1. Ads & Commissions constitute 88% of the Trefis price estimate for Roku's stock.

WHAT HAS CHANGED?

Latest Earnings: Q1 Fiscal Year 2026

Roku Inc. delivered strong results for the first quarter of 2026, with total net revenue rising 22% year-over-year to $1.25 billion, driven by robust expansion in its platform segment. The company reported a GAAP net income of $86 million and diluted earnings per share of $0.57, which handily beat consensus estimates and marked a massive turnaround from the net loss of $0.19 per share in the prior-year period. Operational performance was propelled by a 28% increase in platform revenue to $1.13 billion, fueled by higher partner activity, programmatic ad growth, and the company crossing a major milestone of 100 million active streaming households globally.

Note: Roku's FY'25 ended on December 31, 2025. Q1 FY'26 ended on March 31, 2026.

Global Scale Milestone and Ad Integration Expansion

Roku officially surpassed 100 million active streaming households globally during the first quarter, significantly cementing its distribution footprint. To accelerate monetization of this massive user base, management expanded its third-party programmatic advertising ecosystem by rolling out key platform integrations with Google's DV360, adding to its existing deep partnerships with Amazon DSP and The Trade Desk.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Roku's value that present opportunities for upside or downside to the current Trefis price estimate:

Platform Revenue

• Average Revenue Per User: Platform monetization relies heavily on advertising demand, subscription revenue shares, and content distribution deals. Expanded partnerships with major demand-side platforms could drive higher fill rates and premium ad pricing, providing considerable upside, while a slowdown in the broader digital ad market could drag metrics below Trefis expectations.
• Active Households and Engagement: Roku's ability to cross 100 million households provides massive leverage for premium content partnerships and user engagement. If streaming hours outpace estimates due to successful global expansion, it creates an upside scenario for ad impressions; conversely, intense smart TV ecosystem competition represents a key downside risk.

For additional details, select a division from the interactive Trefis split for Roku at the top of the page.

BUSINESS SUMMARY

Roku operates a leading TV streaming platform that connects users to content, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers. The company generates revenue from digital ad sales, content distribution, premium subscription revenue shares, and selling streaming media devices.

SOURCES OF VALUE

The platform division acts as the primary source of enterprise value and profit margin growth due to its highly scalable software-driven business model.

Substantial Distribution Scale

Roku's platform controls a commanding operating system market share in the smart TV landscape, establishing an expansive distribution moat. This massive scale makes Roku an indispensable gateway for premium streaming services looking to acquire and manage subscribers.

Programmatic Marketplace Moat

By operating a neutral platform integrated with leading multi-partner demand-side platforms, Roku maximizes programmatic advertising yields. The high-margin nature of ad inventory sales and data licensing provides operating leverage that offsets capital expenditures from hardware distribution.

KEY TRENDS

Connected TV Programmatic Shift

Advertisers are steadily migrating traditional linear television budgets over to programmatic connected TV environments. Roku is strategically positioned to capture this secular macro trend through its sophisticated ad stack and expanded premium inventory access.

Capital Allocation and Cost Control

Management is executing a disciplined corporate pivot toward sustained cash generation and profitability, moving away from aggressive device subsidies. This strategy is highlighted by expanding adjusted EBITDA margins and completing $100 million in opportunistic share repurchases during the first quarter.