Roku turned in its first full-year profit for 2025 and beat Wall Street expectations for the fourth quarter — powered by record premium streaming subscription additions and continued growth in streaming hours. The company also issued a bullish forecast for continued growth in 2026.
The streaming platform company reported Q4 revenue of $1.395 billion, up 16% year over year. Net income of $80.5 million (compared with a net loss of $35.5 million in the year-ago period), translating to earnings per diluted share of 53 cents. That handily beat consensus analyst estimates of $1.35 billion revenue and earnings per share of 29 cents, according to LSEG Data & Analytics.
In Q4, Roku’s Platform segment — which includes advertising and revenue-sharing from subscription video partners — saw revenue climb 18% to $1.224 billion, with gross margin of 52.8%. The increase was driven by what the company said was its biggest-ever quarter for premium subscription net additions, benefiting from holiday promotions and improvements to the Roku experience.
And Roku continued to see people streaming more than ever: For the full-year 2025, Roku users streamed an aggregate of 145.6 billion hours, up 15% from 2024.
According to Nielsen’s measurement data, The Roku Channel consistently ranks as the No. 2 free, ad-supported streaming app by usage, behind only YouTube. In December 2025, The Roku Channel hit an all-time high, representing 6.3% of all U.S. TV streaming, up from 4.6% a year earlier.
“Looking ahead to 2026 and beyond, we are confident in our ability to sustain double-digit Platform revenue growth while continuing to expand both operating and net income margins,” CEO Anthony Wood and CFO and COO Dan Jedda wrote in their quarterly letter to shareholders.
This year, after adding HBO Max as a premium subscription partner, Roku expects to add more “tier-one partners,” the execs said. The company also expect to roll out bundles for premium subscriptions in 2026 as well. Additionally, “we plan to add more great entertainment” to Howdy, the low-cost $2.99/month SVOD service it launched in August 2025, and expand it to more platforms.
For full year 2026, Roku expects Platform revenue to grow 18% to $4.890 billion, with gross margin between 51% to 52%. The company expects Devices revenue to grow low-single digits to $610 million, with gross margin in the “negative mid-teens,” roughly in line with 2025. (Roku treats its Devices business as a loss leader for the Platforms side of the house.)
For Q1, Roku provide guidance of Platform revenue growing more than 21% and Devices revenue down mid-single digits, for total net revenue of $1.2 billion, up roughly 18%, with total gross profit of $530 million and adjusted EBITDA of $130 million.
Overall, Roku projected total net revenue of $5.5 billion, which would be up 16%, for 2026, with total gross profit of $2.435 billion, and adjusted EBITDA of $635 million (resulting in an adjusted EBITDA margin improvement of 267 basis points).
“We are maintaining our focus on operational discipline, while continuing to invest in Platform growth,” Wood and Jedda wrote in their letter.