Roku Q1 revenue up 22% YoY
May 4, 2026
Roku, the TV streaming specialist, has delivered Q1 figures it described as “outstanding”, with platform revenue up 28 per cent YoY to $1.13 billion (€0.97bn), attributed to the strength in Advertising and Subscriptions.
“We continued to increase profitability, generating Net Income of $86 million, Adjusted EBITDA of $148 million, up 165 per cent YoY, and an all-time high of Free Cash Flow (TTM). We also repurchased $100 million of shares in Q1, for a total of $250 million since Q3, under our $400 million stock repurchase programme. These results affirm our path to sustaining double-digit Platform revenue growth, expanding margins, and growing our north star metric of Free Cash Flow per share,” Anthony Wood, Founder and CEO, and Dan Jedda, CFO and COO said in a letter to shareholders.
The pair also emphasised the impact of its expanding third-party partnerships and the addition of major content partners such as Apple TV and Peacock.
Q1 Key Results
• Total net revenue was $1.25 billion, up 22 per cent YoY, beating Wall Street estimates
• Platform revenue was $1.13 billion, up 28 per cent YoY, and Advertising revenue grew 27 per cent YoY to $613 million
• Total gross profit was $565 million, up 27 per cent YoY
• Subscriptions revenue grew 23 per cent YoY. The quarter was Roku’s highest ever for Premium Subscription sign-ups
• Streaming Hours were 38.7 billion, up 8 per cent YoY
• Devices revenue was $118 million, down 16 per cent YoY, driven primarily by lower player unit sales and promotional pricing
• The Roku Channel was the #2 app on the Roku platform by engagement in the US
Outlook
“For Q2, we anticipate Platform revenue growing approximately 20 per cent YoY and Devices revenue down high-single digits YoY. We expect this to result in Total net revenue of $1.3 billion, up nearly 17 per cent YoY, with Total gross profit of $580 million and Adjusted EBITDA of $170 million,” the letter to shareholders added.
“For the full year, we are raising our outlook. We now expect Platform revenue to grow nearly 21 per cent YoY to $5 billion, and Devices revenue of approximately $535 million, for Total net revenue of $5.5 billion. We anticipate Platform gross margin at the high end of our 51 per cent to 52 per cent range and Devices gross margin in the high (20) per cent range. Despite our expectation for elevated memory costs in the second half, our overall Devices investment across both gross profit and OpEx remains the same as our prior outlook. For OpEx, we continue to expect it to be more heavily weighted in the second half of the year due to the timing of distribution expenses, and we still anticipate mid-single-digit YoY growth for the full year. As a result, we expect Adjusted EBITDA of $675 million, representing margin improvement of approximately 330 basis points YoY. We are executing against our monetisation initiatives and remain well-positioned to drive sustained double- digit Platform growth and achieve $1 billion of Free Cash Flow by 2028, if not sooner,” concluded Jedda and Wood.
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