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Sep 30
Roku Q3 2025 Earnings Report
Roku delivered strong results and returned to positive operating income for the first time since 2021.
Key Takeaways
Roku reported solid Q3 2025 results with revenue growth driven by platform and ad monetization. The company achieved positive operating income and net income, signaling a return to profitability.
Total revenue reached $1.210638 billion, driven by strong performance in platform revenue.
Net income was $24.812 million, marking a return to profitability.
Streaming hours increased by 4.5 billion year-over-year.
Roku repurchased $50 million in stock and raised its full-year outlook.
Roku
Roku
Roku Revenue by Segment
Revenue by Segment
Platform Revenue
CapyFin.comDevices Revenue
CapyFin.com Forward Guidance
Roku expects Q4 revenue of approximately $1.35 billion, continued platform growth, and improving margins.
Positive Outlook
- Total net revenue forecasted at $1.35 billion for Q4 2025.
- Platform revenue projected to grow 15% YoY in Q4.
- Gross margin expected to remain strong at approximately 52%.
- Full-year Adjusted EBITDA outlook raised to $395 million.
- Expectations for continued double-digit platform revenue growth in 2026.
Challenges Ahead
- Device gross margin expected to remain in the negative high 20% range due to seasonality.
- Device revenue anticipated to be flat YoY.
- Political ad boost not expected to fully repeat in Q4.
- Macro uncertainty may impact ad budgets.
- Continued investments in R&D and marketing could pressure short-term margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income