Particle.news

Roku Rally Extends as Analysts Lift Targets on Profit Beat and Upbeat Outlook

Analyst optimism reflects platform-led growth powered by advertising strength plus a surge in paid channels.

Overview

  • Q4 revenue rose 16% to $1.39 billion with GAAP EPS of $0.53, topping estimates that called for $1.35 billion in revenue and $0.28 in EPS.
  • Platform revenue increased 18% to $1.22 billion, led by video advertising and a record quarter for premium subscriptions aided by the addition of HBO Max.
  • Devices remained a loss leader with $170.9 million in revenue and a gross profit loss of $33.9 million, underscoring the focus on the higher-margin platform business.
  • Adjusted EBITDA reached $169.4 million, above guidance, with the metric excluding $85 million of stock-based compensation disclosed for the quarter.
  • Roku guided 2026 revenue to about $5.5 billion with roughly $635 million in adjusted EBITDA and $325 million in net income, forecast Q1 revenue of $1.2 billion with $130 million in adjusted EBITDA and $50 million in net income, and plans to introduce premium subscription bundles later this year.