# ROKU, INC (ROKU)

Informational only - not investment advice.

CIK: 0001428439
SIC: 4841 Cable & Other Pay Television Services
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [Communications](/major-group/48/) > [SIC 4841 Cable & Other Pay Television Services](/industry/4841/)
Latest 10-K filed: 2026-02-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=1428439
Filing source: https://www.sec.gov/Archives/edgar/data/1428439/000162828026008114/roku-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-13 · accession 0001628280-26-008114 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001428439.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 4,737,251,000 USD | 2025 | verified |
| Net income | 88,361,000 USD | 2025 | verified |
| Assets | 4,433,483,000 USD | 2025 | verified |
| Free cash flow | 478,438,000 USD | 2025 | computed |
| Net margin | 1.87% | 2025 | computed |
| Operating margin | -0.12% | 2025 | computed |
| Revenue YoY | +15.18% | 2025 | computed |
| ROE | 3.32% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ROKU | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 1.9% | 1.9% | 42 | 13 |
| Operating margin | -0.1% | 2.0% | 42 | 13 |
| Revenue growth | 15.2% | -0.0% | 92 | 13 |
| FCF margin | 10.1% | 10.1% | 50 | 13 |
| ROE | 3.3% | 2.0% | 60 | 11 |
| ROA | 2.0% | 0.7% | 58 | 13 |
| Liabilities / equity | 0.67 | 1.75 | 10 | 11 |
| Current ratio | 2.75 | 1.08 | 83 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4841 Cable & Other Pay Television Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 4737251000 | USD | 2025 | 2026-02-13 |
| Net income | 88361000 | USD | 2025 | 2026-02-13 |
| Assets | 4433483000 | USD | 2025 | 2026-02-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001428439.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 398,649,000 | 512,763,000 | 742,506,000 | 1,128,921,000 | 1,778,388,000 | 2,764,584,000 | 3,126,534,000 | 3,484,619,000 | 4,112,898,000 | 4,737,251,000 |
| Net income | -42,758,000 | -63,509,000 | -8,857,000 | -59,937,000 | -17,507,000 | 242,385,000 | -498,005,000 | -709,561,000 | -129,386,000 | 88,361,000 |
| Operating income | -43,361,000 | -19,616,000 | -13,296,000 | -65,059,000 | -20,253,000 | 235,100,000 | -530,888,000 | -792,377,000 | -218,167,000 | -5,624,000 |
| Gross profit | 121,045,000 | 199,833,000 | 332,148,000 | 495,224,000 | 808,219,000 | 1,408,600,000 | 1,441,122,000 | 1,522,615,000 | 1,805,645,000 | 2,074,424,000 |
| Diluted EPS |  |  |  | -0.52 | -0.14 | 1.71 | -3.62 | -5.01 | -0.89 | 0.59 |
| Operating cash flow | -32,463,000 | 37,292,000 | 13,922,000 | 13,707,000 | 148,192,000 | 228,081,000 | 11,795,000 | 255,856,000 | 218,045,000 | 483,718,000 |
| Capital expenditures | 8,596,000 | 9,229,000 | 18,327,000 | 77,180,000 | 82,382,000 | 40,041,000 | 161,696,000 | 82,619,000 | 5,061,000 | 5,280,000 |
| Share buybacks |  |  |  |  |  |  |  | 0.00 | 0.00 | 149,982,000 |
| Assets | 179,078,000 | 371,897,000 | 464,997,000 | 1,470,234,000 | 2,270,542,000 | 4,082,145,000 | 4,412,601,000 | 4,261,792,000 | 4,303,933,000 | 4,433,483,000 |
| Liabilities | 159,722,000 | 219,618,000 | 220,346,000 | 771,808,000 | 942,527,000 | 1,315,539,000 | 1,766,045,000 | 1,935,459,000 | 1,811,196,000 | 1,775,538,000 |
| Stockholders' equity | -193,824,000 | 152,279,000 | 244,651,000 | 698,426,000 | 1,328,015,000 | 2,766,606,000 | 2,646,556,000 | 2,326,333,000 | 2,492,737,000 | 2,657,945,000 |
| Cash and cash equivalents |  | 177,250,000 | 155,564,000 | 515,479,000 | 1,092,815,000 | 2,146,043,000 | 1,961,956,000 | 2,025,891,000 | 2,160,236,000 | 1,587,068,000 |
| Free cash flow | -41,059,000 | 28,063,000 | -4,405,000 | -63,473,000 | 65,810,000 | 188,040,000 | -149,901,000 | 173,237,000 | 212,984,000 | 478,438,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -10.73% | -12.39% | -1.19% | -5.31% | -0.98% | 8.77% | -15.93% | -20.36% | -3.15% | 1.87% |
| Operating margin | -10.88% | -3.83% | -1.79% | -5.76% | -1.14% | 8.50% | -16.98% | -22.74% | -5.30% | -0.12% |
| Return on equity |  | -41.71% | -3.62% | -8.58% | -1.32% | 8.76% | -18.82% | -30.50% | -5.19% | 3.32% |
| Return on assets | -23.88% | -17.08% | -1.90% | -4.08% | -0.77% | 5.94% | -11.29% | -16.65% | -3.01% | 1.99% |
| Liabilities / equity |  | 1.44 | 0.90 | 1.11 | 0.71 | 0.48 | 0.67 | 0.83 | 0.73 | 0.67 |
| Current ratio | 1.42 | 2.11 | 2.23 | 2.58 | 3.26 | 4.19 | 2.74 | 2.41 | 2.62 | 2.75 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001428439.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.88 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -1.38 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.76 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 912,018,000 | -330,071,000 | -2.33 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 984,425,000 | -78,291,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 881,469,000 | -50,855,000 | -0.35 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 968,179,000 | -33,953,000 | -0.24 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,062,203,000 | -9,030,000 | -0.06 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,201,047,000 | -35,548,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,020,672,000 | -27,431,000 | -0.19 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,111,038,000 | 10,503,000 | 0.07 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,210,638,000 | 24,812,000 | 0.16 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,394,903,000 | 80,477,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,248,879,000 | 85,700,000 | 0.57 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,354,690,000 | 164,216,000 | 1.08 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ROKU's latest 10-K: [/company/ROKU/business/](/company/ROKU/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ROKU's latest 10-K: [/company/ROKU/risk-factors/](/company/ROKU/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1428439/000162828026054335/roku-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report and with our audited consolidated financial statements included in our Annual Report for the year ended December 31, 2025, filed on February 13, 2026 with the SEC (the “Annual Report”). In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, beliefs, and expectations, and involve risks and uncertainties. Factors that could cause or contribute to these differences include those discussed below and in our Annual Report.    

Overview

Effective in the first quarter of 2026, our reportable segments changed. We now manage and report our operating results through three reportable segments: Advertising, Subscriptions, and Devices. Previously, we reviewed and managed the new Advertising and Subscriptions segments as a combined Platform segment. This change was made to reflect our ongoing evaluation and monitoring of our business, including changes made to both our internal reporting and the information reported to the CODM. Prior period segment financial information has been retrospectively adjusted to reflect these changes.

Advertising revenue is generated from the sale of digital advertising, including direct and programmatic video advertising, ads integrated into our user interface (“UI”), and related services.

Subscriptions revenue is generated from the sale of subscriptions to end users, including the sale of Premium Subscriptions, the sale of owned and operated subscription services, and revenue from content distribution arrangements, which primarily includes subscription revenue shares from content partners and the sale of branded app buttons on remote controls.

“Platform” revenue, cost of revenue, and gross profit reflect the combined revenue, cost of revenue, and gross profit attributable to our Advertising and Subscriptions segments.

Devices revenue is generated from the sale of streaming players, Roku-made TVs, smart home products and services, audio products, and related accessories. We expect to continue to manage the average selling prices of Roku streaming devices in an effort to sell more devices, which we believe will increase our Streaming Households. We expect that this trade off from Devices gross profit or loss to grow Streaming Households should result in increased total Platform revenue and total Platform gross profit over time.

Proposed Transaction with Fox Corporation

On June 14, 2026, we entered into the Merger Agreement with Fox. Refer to Note 1 of the Notes to Condensed Consolidated Financial Statements for additional information regarding the transaction.

Business Conditions and Macroeconomic Factors

Our business is subject to risks related to the evolving macroeconomic environment, including the effects of increased volatility in financial markets, higher inflation and interest rates, potential economic slowdown or recession, geopolitical developments, such as the conflict in the Middle East, changes in economic or government policies, including the unknown impact of tariffs, changing global regulations, global supply chain constraints, including the scarcity of, or increased prices for, key components such as memory chips, and the overall uncertainty surrounding international trade relations. While we intend to remain vigilant in monitoring the impacts of these circumstances on our business and adapt accordingly, the effects of these macroeconomic factors on our business, results of operations, and financial condition remain largely uncertain. See Item 1A, Risk Factors, and the Note Regarding Forward Looking Statements elsewhere in this Quarterly Report for additional details.

Key Performance Metrics and Non-GAAP Measures

Since our IPO in 2017, the streaming TV industry has evolved meaningfully, with Americans now spending significantly more TV time streaming than watching traditional TV. Our business has also grown and evolved, and we are now primarily focused on growing Platform revenue and profitability.

The key performance metrics (“KPMs”) we use to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions are Streaming Hours, Platform revenue, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), and Free Cash Flow.

24

Table of Contents

Streaming Hours

We believe the number of Streaming Hours on our platform is an effective measure of user engagement and that the growth in the number of hours of content streamed across our platform reflects our success in addressing the growing user demand for TV streaming. We define Streaming Hours as the aggregate amount of time Roku streaming devices stream content on our platform in a given period. Hours streamed from The Roku Channel on non-Roku platforms are not included in this metric. Additionally, smart home products do not contribute to our Streaming Hours.

Additionally, we believe that over time, increasing user engagement on our streaming platform increases our platform monetization because we earn Platform revenue from various forms of user engagement, including advertising, as well as revenue shares from subscriptions and transactional video on-demand. However, our revenue from content partners is not tied to the hours streamed on their streaming apps, and the number of Streaming Hours does not correlate to revenue earned from such content partners or ARPU on a period-by-period basis. Moreover, Streaming Hours on our platform are measured whenever a Roku streaming device is streaming content, whether a viewer is actively watching or not. For example, if a Roku player is connected to a TV, and the viewer turns off the TV, steps away, or falls asleep and does not stop or pause the player, then the particular streaming app may continue to play content for a period of time determined by the streaming app. We believe that this also occurs across a wide variety of non-Roku streaming devices and other set-top boxes.

Since 2020, all of our Roku streaming devices include a Roku TV OS feature that is designed to identify when content has been continuously streaming on an app for an extended period of time without user interaction. This feature, which we refer to as “Are you still watching,” periodically prompts the user to confirm that they are still watching the selected app and closes the app if the user does not respond affirmatively. We believe that the implementation of this feature across the Roku platform benefits us, our customers, content partners, and advertisers. Some of our leading content partners, including Netflix, also have implemented similar features within their apps. This Roku TV OS feature supplements these app features. This feature has not had and is not expected to have a material impact on our financial performance.

We streamed 37.9 billion and 35.4 billion hours during the three months ended June 30, 2026 and 2025, respectively, reflecting an increase of 7%.

Platform Revenue

We use Platform revenue as a primary metric to measure the performance of our business because it represents our ability to successfully monetize our platform. Platform revenue includes revenue from both our Advertising and Subscriptions segments and its growth is one of our strategic priorities. Platform revenue was $1,221.0 million and $975.5 million for the three months ended June 30, 2026 and 2025, respectively.

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Adjusted EBITDA (Non-GAAP Measure)

We use Adjusted EBITDA as a primary metric to measure the performance of our business because it represents our ability to successfully manage profitability. Our goal is to grow Adjusted EBITDA over time, driving continued growth in stockholder value.

Adjusted EBITDA is a non-GAAP financial measure. The Adjusted EBITDA reconciliation excludes total other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, merger-related costs, and income tax expense (benefit) from the net income (loss) of the period. We believe Adjusted EBITDA is useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, this non-GAAP financial measure has limitations, and should not be considered in isolation or as a substitute for our GAAP financial information, such as GAAP net income (loss). In addition, Adjusted EBITDA may not be comparable to similarly titled metrics of other companies due to differences in methods of calculation.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated (in thousands):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Six Months Ended"],["","June 30, 2026","","June 30, 2025","","June 30, 2026","","June 30, 2025"],["Net income (loss)","$","164,216","","","$","10,503","","","$","249,916","","","$","(16,928)"],["Total other income, net","(23,216)","","","(28,006)","","","(60,089)","","","(45,222)"],["Stock-based compensation","75,321","","","84,640","","","154,003","","","180,134"],["Depreciation and amortization","14,105","","","16,881","","","32,033","","","32,073"],["Restructuring charges","\u2014","","","\u2014","","","\u2014","","","3,064"],["Merger-related costs (1)","18,719","","","\u2014","","","18,719","","","\u2014"],["Income tax expense (benefit)","5,175","","","(5,830)","","","8,120","","","(18,913)"],["Adjusted EBITDA","$","254,320","","","$","78,188","","","$","402,702","","","$","134,208"]]
[[/GREPCENT_TABLE]]

(1) The merger-related costs for the three and six months ended June 30, 2026 were related to our proposed transaction with Fox. Refer to Note 1 to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report.

Free Cash Flow (Non-GAAP Measure)

We use Free Cash Flow as a primary metric to measure the performance of our business because we believe maximizing Free Cash Flow helps indicate the financial strength of our business, as well as provide an indication of cash generated or (used) by the business. Our goal is to continuously increase Free Cash Flow over time. We define Free Cash Flow as our trailing 12-month (“TTM”) cash flows from operating activities excluding purchases of property and equipment and the effects of exchange rates on cash.

Our Free Cash Flow was $704.1 million and $392.0 million for the TTM periods ended June 30, 2026 and 2025, respectively.

Free Cash Flow is a non-GAAP financial measure. The Free Cash Flow reconciliation excludes purchases of property and equipment and effects of exchange rates on cash from the cash flows from operating activities, in each case where applicable. We believe Free Cash Flow is useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, this non-GAAP financial measure has limitations, and should not be considered in isolation or as a substitute for our GAAP financial information, such as GAAP cash flows from operating activities. For additional information about cash flows from operating activities, see “Liquidity and Capital Resources” below. In addition, Free Cash Flow may not be comparable to similarly titled metrics of other companies due to differences in methods of calculation.

26

Table of Contents

The following table presents a reconciliation of Free Cash Flow to the most directly comparable GAAP financial measure for each of the periods indicated (in thousands):

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1428439/000162828026008114/roku-20251231.htm
Complete FY 2025 MD&A: /company/ROKU/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-13
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes included in Item 8 of this Annual Report. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, beliefs, and expectations, and involve risks and uncertainties. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report, particularly in the section titled Item 1A. Risk Factors and the Note Regarding Forward-Looking Statements.

This section of this Annual Report generally discusses fiscal years 2025 and 2024 and year-to-year comparisons between those years. Discussions of fiscal year 2023 and year-to-year comparisons between fiscal years 2024 and 2023 that are not included in this Annual Report can be found in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of our Annual Report for the fiscal year ended December 31, 2024 filed with the SEC on February 14, 2025.

Overview

Our two reportable segments are the Platform segment and the Devices segment. Platform revenue is generated from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our user

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interface (“UI”), and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of Premium Subscriptions, the sale of owned and operated subscription services, and the sale of branded app buttons on remote controls).

Devices revenue is generated from the sale of streaming players, Roku-made TVs, smart home products and services, audio products, and related accessories. We expect to continue to manage the average selling prices of Roku streaming devices in an effort to sell more devices, which we believe will increase our Streaming Households. We expect that this trade off from Devices gross profit or loss to grow Streaming Households should result in increased Platform revenue and Platform gross profit over time.

Business Conditions and Macroeconomic Factors

Our business is subject to risks related to the evolving macroeconomic environment, including the effects of increased volatility in financial markets, higher inflation and interest rates, potential economic slowdown or recession, geopolitical developments, changes in economic or government policies, including the unknown impact of tariffs, changing global regulations, and the overall uncertainty surrounding international trade relations. While we intend to remain vigilant in monitoring the impacts of these circumstances on our business and adapt accordingly, the effects of these macroeconomic factors on our business, results of operations, and financial condition remain largely uncertain. See Item 1A, Risk Factors, and the Note Regarding Forward Looking Statements elsewhere in this Annual Report for additional details.

Key Performance Metrics and Non-GAAP Measures

Since our IPO in 2017, the streaming TV industry has evolved meaningfully, with Americans now spending significantly more TV time streaming than watching traditional TV. Our business has also grown and evolved, and we are now primarily focused on growing Platform revenue and profitability. As a result, and as previously disclosed, starting in the first quarter of 2025, we have updated our Key Performance Metrics (“KPMs”) to better align with these priorities.

The key performance metrics we use to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions are Streaming Hours, Platform revenue, Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), and Free Cash Flow.

Streaming Hours

We believe the number of Streaming Hours on our platform is an effective measure of user engagement and that the growth in the number of hours of content streamed across our platform reflects our success in addressing the growing user demand for TV streaming. We define Streaming Hours as the aggregate amount of time Roku streaming devices stream content on our platform in a given period. Hours streamed from The Roku Channel on non-Roku platforms are not included in this metric. Additionally, smart home products do not contribute to our Streaming Hours.

Additionally, we believe that over time, increasing user engagement on our streaming platform increases our platform monetization because we earn Platform revenue from various forms of user engagement, including advertising, as well as revenue shares from subscriptions and transactional video on-demand. However, our revenue from content partners is not tied to the hours streamed on their streaming apps, and the number of Streaming Hours does not correlate to revenue earned from such content partners or ARPU on a period-by-period basis. Moreover, Streaming Hours on our platform are measured whenever a Roku streaming device is streaming content, whether a viewer is actively watching or not. For example, if a Roku player is connected to a TV, and the viewer turns off the TV, steps away, or falls asleep and does not stop or pause the player, then the particular streaming app may continue to play content for a period of time determined by the streaming app. We believe that this also occurs across a wide variety of non-Roku streaming devices and other set-top boxes.

Since 2020, all of our Roku streaming devices include a Roku TV OS feature that is designed to identify when content has been continuously streaming on an app for an extended period of time without user interaction. This feature, which we refer to as “Are you still watching,” periodically prompts the user to confirm that they are still watching the selected app and closes the app if the user does not respond affirmatively. We believe that the implementation of this feature across the Roku platform benefits us, our customers, content partners, and advertisers. Some of our leading content partners, including Netflix, also have implemented similar features within their apps. This Roku TV OS feature supplements these app features. This feature has not had and is not expected to have a material impact on our financial performance.

We streamed 145.6 billion and 127.1 billion hours during the years ended December 31, 2025 and 2024, respectively, reflecting an increase of 15%.

Platform Revenue

We use Platform revenue as a primary metric to measure the performance of our business because it represents our ability to successfully monetize our platform. Platform revenue growth is one of our strategic priorities. Platform revenue was $4.1 billion and $3.5 billion for years ended December 31, 2025 and 2024, respectively.

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Adjusted EBITDA (Non-GAAP Measure)

We use Adjusted EBITDA as a primary metric to measure the performance of our business because it represents our ability to successfully manage profitability. Our goal is to grow Adjusted EBITDA over time, driving continued growth in stockholder value.

Adjusted EBITDA is a non-GAAP financial measure. The Adjusted EBITDA reconciliation excludes total other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, and income tax expense (benefit) from the net income (loss) of the period. We believe Adjusted EBITDA is useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, this non-GAAP financial measure has limitations, and should not be considered in isolation or as a substitute for our GAAP financial information, such as GAAP net income (loss). In addition, Adjusted EBITDA may not be comparable to similarly titled metrics of other companies due to differences in methods of calculation.

The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure for each of the periods indicated (in thousands):

[[GREPCENT_TABLE]]
[["","Years Ended December 31,"],["","2025","","2024","","2023"],["Net income (loss)","$","88,361","","","$","(129,386)","","","$","(709,561)"],["Total other income, net","(99,522)","","","(98,209)","","","(92,947)"],["Stock-based compensation","354,169","","","384,662","","","370,130"],["Depreciation and amortization","68,904","","","62,714","","","70,447"],["Restructuring charges (1)","3,064","","","30,999","","","356,094"],["Income tax expense","5,537","","","9,428","","","10,131"],["Adjusted EBITDA","$","420,513","","","$","260,208","","","$","4,294"]]
[[/GREPCENT_TABLE]]

(1) Restructuring charges for the year ended December 31, 2025 primarily include asset impairment charges of $2.9 million. Restructuring charges for the year ended December 31, 2024 primarily include asset impairment charges of $29.1 million. Restructuring charges for the year ended December 31, 2023 include operating lease right-of-use assets impairment charges of $131.6 million, property and equipment impairment charges of $72.3 million, content asset impairment charges of $65.5 million, employee severance and related charges of $83.2 million, and facilities exit costs of $3.5 million.

Free Cash Flow (Non-GAAP Measure)

We use Free Cash Flow as a primary metric to measure the performance of our business because we believe maximizing Free Cash Flow helps indicate the financial strength of our business, as well as provide an indication of cash generated or (used) by the business. Our goal is to continuously increase Free Cash Flow over time. We define Free Cash Flow as our trailing 12-month (“TTM”) cash flows from operating activities excluding purchases of property and equipment and the effects of exchange rates on cash.

Our Free Cash Flow was $483.6 million and $203.2 million for the TTM periods ended December 31, 2025 and 2024, respectively.

Free Cash Flow is a non-GAAP financial measure. The Free Cash Flow reconciliation excludes purchases of property and equipment and effects of exchange rates on cash from the cash flows from operating activities, in each case where applicable. We believe Free Cash Flow is useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, this non-GAAP financial measure has limitations, and should not be considered in isolation or as a substitute for our GAAP financial information, such as GAAP cash flows from operating activities. For additional information about cash flows from operating activities, see “Liquidity and Capital Resources” below. In addition, Free Cash Flow may not be comparable to similarly titled metrics of other companies due to differences in methods of calculation.

The following table presents a reconciliation of Free Cash Flow to the most directly comparable GAAP financial measure for each of the periods indicated (in thousands):

[[GREPCENT_TABLE]]
[["","Trailing Twelve Months Ended"],["","December 31, 2025","","December 31, 2024"],["Net cash provided by operating activities","$","483,718","","","$","218,045"],["Less: Purchases of property and equipment","(5,280)","","","(5,061)"],["Add/(Less): Effect of exchange rate changes on cash, cash equivalents and restricted cash","5,179","","","(9,746)"],["Free cash flow (TTM)","$","483,617","","","$","203,238"]]
[[/GREPCENT_TABLE]]

44

Table of Contents

Components of Results of Operations

Revenue

Platform Revenue

We generate Platform revenue from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our UI, and related services), as well as streaming services distribution (including subscription and transaction revenue shares, the sale

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ROKU/mda/fy2025/
All MD&A years: /company/ROKU/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ROKU/mda/fy2024/): filed 2025-02-14; accession 0001428439-25-000013 (https://www.sec.gov/Archives/edgar/data/1428439/000142843925000013/roku-20241231.htm)
- [FY 2023 MD&A](/company/ROKU/mda/fy2023/): filed 2024-02-16; accession 0001428439-24-000011 (https://www.sec.gov/Archives/edgar/data/1428439/000142843924000011/roku-20231231.htm)
- [FY 2022 MD&A](/company/ROKU/mda/fy2022/): filed 2023-02-16; accession 0001428439-23-000007 (https://www.sec.gov/Archives/edgar/data/1428439/000142843923000007/roku-20221231.htm)
- [FY 2021 MD&A](/company/ROKU/mda/fy2021/): filed 2022-02-18; accession 0001428439-22-000010 (https://www.sec.gov/Archives/edgar/data/1428439/000142843922000010/roku-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4841 Cable & Other Pay Television Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [M2SL](/indicator/M2SL/): M2

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ROKU.md · JSON record: /company/ROKU.json · verified financials: /company/ROKU/financials.json / /company/ROKU/financials.csv · machine TOC for the whole site: /llms.txt