In announcing its Q1 2025 figures, Roku also revealed it has entered into an agreement to acquire Frndly TV, a US subscription streaming service that offers live TV, on-demand content and cloud-based DVR.

Based in Denver, Colorado, Frndly TV was founded in 2019. It offers subscribers access to more than 50 popular live TV channels, including A&E, Hallmark Channel, The History Channel, Lifetime, and more, as well as thousands of hours of on-demand content, starting at $6.99 per month. Subscribers also can record content using Frndly TV’s unlimited cloud-based DVR, as well as access any show or movie that has aired in the past 72 hours on live channels.

“Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Anthony Wood, Founder and CEO of Roku. “This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point.”

Frndly TV’s team will stay on after the transaction closes.

“We’re incredibly excited to join Roku and continue our mission to provide customers feel-good, quality entertainment as the most affordable live TV subscription streaming service in America,” added Andy Karofsky, Frndly TV CEO and Co-Founder. “Roku’s pioneering role in streaming and its longstanding commitment to customers aligns perfectly with our strategic vision. We believe this combination will help us accelerate subscription growth, given the alignment in core customer demographics and Roku’s leadership position in the connected TV ecosystem.”

In addition to Roku, Frndly TV will continue to be available on all platforms and devices where it’s currently available, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Vizio, the web (and via Chromecast), and mobile (Android, iOS).

The acquisition is expected to be completed in the second quarter, pending customary closing conditions. The total purchase price is $185 million (€163.8m) in cash, which includes $75 million held back that is tied to meeting performance goals and milestones over the next two years.

Meanwjhile, Roku reported Q1 total net revenue was at $1.02 billion, up 16 per cent year on year. Streaming hours were at 35.8 billion, up 5.1 billion hours year on year.

in a letter to shareholders the company said: “In Q1 we grew Platform revenue 17 per cent [to $881 million], in line with our outlook, with contributions from both video advertising and streaming services distribution activities. Our scale in the US exceeds half of broadband households and continues to grow. Beginning with our Home Screen, we continue to enhance the Roku Experience to improve content discovery for viewers, which is increasing engagement, ad reach, and subscriptions. In the US, The Roku Channel is now the #2 app on our platform by engagement. We remain focused on our initiatives to grow Platform revenue, Adjusted EBITDA, and Free Cash Flow. While we continue to monitor the macro environment,we reaffirm our outlook for full-year 2025 Platform revenue of $3.95 billion and Adjusted EBITDA of $350 million”.

For Q2, we estimate total net revenue of approximately $1.07 billion, representing 11 per cent YoY growth. Within that, Platform revenue is expected to grow 14 per cent YoY with a gross margin of roughly 51 per cent. Devices revenue is projected to decline about 10 per cent YoY with a gross margin of negative 10 per cent. These trends translate to an expected total gross profit of approximately $465 million and Adjusted EBITDA of approximately $70 million for the quarter. For the full year, we are reaffirming our Platform revenue outlook of $3.95 billion and Adjusted EBITDA of $350 million. Due to evolving dynamics in our advertising product mix, we anticipate full-year Platform gross margin to be approximately 52 per cent. While tariff-related impacts to our Devices segment remain difficult to predict, we expect Devices revenue and gross profit loss to remain consistent with 2024 levels. We remain vigilant and adaptable as market conditions evolve. While uncertainty remains, we are confident in our strategy and continue to see a path to achieving positive operating income in 2026,” added the letter from Anthony Wood, Founder and CEO, and Dan Jedda, CFO.

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