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Jun 30, 2025
Roku Q2 2025 Earnings Report
Roku reported stronger-than-expected Q2 results with revenue and platform growth driven by advertising strength and the acquisition of Frndly.
Key Takeaways
Roku exceeded expectations in Q2 2025, driven by an 18% rise in platform revenue and strong advertising performance. The company returned to profitability and announced a $400 million stock repurchase program.
Total revenue reached $1.11 billion, up 15% year over year.
Net income turned positive at $10.5 million, compared to a $33.9 million loss in Q2 2024.
Platform revenue hit $975.5 million, up 18% from the prior year.
Roku announced a $400 million stock repurchase program and raised full-year 2025 outlook.
Revenue by Segment
Forward Guidance
Roku raised its full-year 2025 guidance for Platform revenue and Adjusted EBITDA, expecting continued growth driven by ad demand and subscriptions.
Positive Outlook
- Raised full-year Platform revenue outlook to $4.075 billion
- Adjusted EBITDA guidance increased to $375 million
- Q3 revenue expected to grow 13% YoY to $1.205 billion
- Platform revenue projected to grow 16% YoY in Q3
- Platform gross margin expected at 51% for Q3
Challenges Ahead
- Devices revenue projected to decline ~3% YoY in Q3
- Devices gross margin expected to remain in negative mid-teens
- Full-year Devices revenue expected to be slightly down due to tariffs
- Net income remains modest despite revenue growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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