Roku achieves positive operating income in Q3
October 31, 2025
Roku, the streaming specialist, has reported that Q3 net revenue stood $1.21 billion (€1.05bn), up 14 per cent year over year (YoY). Platform revenue was $1.06 billion, up 17 per cent YoY and attributed to strength in video advertising and streaming services distribution activities; gross profit was $525 million, up 9 per cent YoY.
Total streaming hours were 36.5 billion, up 4.5 billion hours YoY. The Roku Channel remained the #2 app on the Roku platform by engagement in the US and was the #3 app by reach globally. According to Nielsen’s The Gauge report, The Roku Channel in September accounted for 6.2 per cent of all US TV streaming time and remains the most‑viewed FAST service in the country.
In Q3, Devices revenue was $146 million, down 5 per cent YoY, and gross profit was $23 million, representing gross margin of 16 per cent, which was inline outlook. Roku maintained its position as as the #1 selling TV OS in the US, Canada and Mexico. In the US, Roku’s share of TV
units sold continues to exceed that of the #2 and #3 selling TV operating systems combined, and its streaming devices are in more than half of broadband households.
For Q4, Roku said it expects total net revenue of approximately $1.35 billion, representing 12 per cent YoY growth. Within that, Platform revenue is projected to grow 15 per cent YoY with an estimated gross margin of approximately 52 per cent. Excluding political advertising and the acquisition of Frndly TV, the Q4 YoY Platform revenue growth rate is expected to step up slightly from Q3. Devices revenue is anticipated to be roughly inline with the prior year quarter, while gross margin is projected to be in the negative high 20 per cent range, primarily due to seasonality and inline with Q4 2024. Altogether, these trends are expected to result in total gross profit of approximately $575 million and Adjusted EBITDA of roughly $145 million for the quarter. For the full year, Roku raised its outlook for Platform revenue to $4.11 billion and Adjusted EBITDA to $395 million.
In a letter to shareholders, Anthony Wood, Founder and CEO, and Dan Jedda, CFO and COO, said: “We delivered strong Q3 results, achieving positive operating income ahead of schedule and for the first time since 2021. Platform revenue grew 17 per cent YoY, driven by strength in streaming services distribution and video advertising activities. We deepened integrations with third‑party ad demand and measurement platforms, grew Roku‑billed subscriptions, and enhanced our Home Screen and the overall Roku Experience. We also repurchased $50 million of our common stock under the $400 million stock repurchase programme and are increasing our full year outlook. All of this reinforces our commitment to delivering long-term shareholder value by growing free cash flow per share. Looking ahead, we are confident in our ability to deliver double-digit Platform revenue growth while increasing operating margins in 2026 and beyond.”
Despite the positive quarter, Roku’s shares dropped 6 per cent in premarket trading on October 31st, as investors focused on the company’s softer revenue growth forecast.
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