Roku, a leading independent streaming device and content platform, reported its third-quarter financial results for 2025, revealing a significant turnaround that surpassed analyst predictions. For the first time since 2021, the company achieved positive operating income, underscoring its recovery from previous losses.
In the third quarter, Roku’s revenue reached $1.21 billion, a growth of 14% year over year. The company also reported a net income of $24.8 million, contrasting with a net loss of $35.8 million from the same quarter last year. This resulted in earnings per diluted share of 16 cents, which exceeded the analysts’ average expectations of $1.1 billion in revenue and adjusted earnings of 9 cents per share.
The growth was driven by an increase in user engagement, with total streaming hours on the Roku platform totaling 36.5 billion, a 12% rise from the previous year. For the entire 2025 financial year, Roku adjusted its Platform revenue guidance to $4.11 billion, up from an earlier forecast of $4.075 billion, and raised its adjusted EBITDA expectations to $395 million, from $375 million.
Despite the positive financial news, investors reacted with caution, leading to a decline of over 6% in Roku’s shares during after-hours trading. The company’s Platform revenue, which includes advertising, content sales, and revenue sharing from subscriptions, rose by 17% to $1.065 billion, while revenues from devices fell by 5% to $146 million. However, Roku managed to turn an operating profit of $9.5 million and achieved a gross profit of $525 million, an increase of 9%.
Roku’s CEO, Anthony Wood, and COO/CFO, Dan Jedda, expressed confidence in the company’s future earning potentials, projecting double-digit growth in Platform revenue and enhanced operating margins in 2026. They highlighted that video advertising on Roku is expanding faster than the general digital advertising market in the U.S. The partnership with Amazon to enhance integrations with third-party demand-side platforms is anticipated to boost ad demand significantly.
Looking ahead to the fourth quarter, Roku forecasts total net revenue of approximately $1.35 billion, reflecting a 12% growth. Within this, Platform revenue is projected to grow by 15%, with a gross margin expected to remain around 52%. Roku anticipates a gross profit of about $575 million for Q4, alongside an adjusted EBITDA of roughly $145 million.
Roku has also expanded its offerings with the launch of a new ad-free subscription video service called Howdy, priced at $2.99 per month. This service provides access to nearly 10,000 hours of content from well-known partners including Warner Bros. and Lionsgate, positioning itself as a low-cost alternative to higher-priced subscription video-on-demand services like Netflix.
The Roku Channel continues to thrive, ranking as the second most popular app on the platform by engagement in the U.S. It has rolled out new content from networks such as A&E and launched dedicated channels featuring popular series like “Shark Tank” and “Law & Order.” Additionally, the Roku original “Solo Traveling With Tracee Ellis Ross” has garnered significant viewership and critical acclaim, leading to its renewal for a second season.
In a strategic move, Roku appointed Lisa Holme as the head of content for Roku Media. Holme, who comes with extensive experience from Warner Bros. Discovery and Hulu, will oversee the development of original programming and content partnerships, enhancing Roku’s competitive edge in the streaming landscape.