•
Mar 31
Roku Q1 2025 Earnings Report
Roku reported a net loss and modest revenue growth in Q1 2025.
Key Takeaways
Roku delivered solid revenue growth in its platform business in Q1 2025, but remained unprofitable due to ongoing investments and losses in the devices segment.
Platform revenue grew 17% year over year, reaching $880.8 million.
The Roku Channel became the #2 app by engagement on the platform in the U.S.
Adjusted EBITDA improved to $56 million compared to $40.9 million last year.
Devices gross margin remained negative due to promotional pricing impacts.
Roku
Roku
Roku Revenue by Segment
Forward Guidance
Roku expects moderate revenue growth and improved adjusted EBITDA in Q2 2025, with continued investment in platform initiatives.
Positive Outlook
- Q2 total net revenue projected at $1.07 billion, up 11% YoY
- Platform revenue expected to grow 14% YoY
- Adjusted EBITDA for Q2 forecast at $70 million
- Full-year 2025 Platform revenue outlook reaffirmed at $3.95 billion
- Platform gross margin expected to remain strong at approximately 52%
Challenges Ahead
- Devices revenue expected to decline by 10% YoY in Q2
- Devices segment continues to report negative gross margins
- Ongoing macroeconomic uncertainty could affect ad demand
- Tariff-related impacts remain difficult to predict
- Path to positive operating income deferred to 2026
Revenue & Expenses
Visualization of income flow from segment revenue to net income