ROKU earnings analysis
What we found in ROKU's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Roku delivered a strong Q1 2026 performance with revenue of $1.25 billion, up 22% year-over-year, and EPS of $0.57, significantly surpassing both estimates and prior periods. Management raised full-year revenue guidance to $5.5 billion, emphasizing robust platform growth driven by advertising and subscription services, despite continued challenges in device sales.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue increased to $1.25 billion in Q1 2026, a 22% increase from $1.02 billion in Q1 2025.
- Earnings Surprise
- EPS of $0.57 exceeded estimates of $0.35, reflecting a 62.9% surprise.
- Significant Advertising Revenue Growth
- Advertising revenue up 27% to $612.7 million, contributing to total Platform revenue of $1.13 billion.
- Platform Revenue Growth
- Total Platform revenue increased 28% year-over-year from $880.8 million in Q1 2025.
- Cash Flow Improvement
- Free cash flow for TTM was $538.8 million, up from $298.4 million year-over-year.
- Management Raises Guidance
- Full-year revenue guidance raised to $5.5 billion, with a Q2 revenue forecast of $1.3 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Device Revenue
- Devices revenue fell 16% to $117.6 million as sales of streaming players decreased.
- Operational Cost Pressures
- Increased costs due to higher content and subscription service licensing fees, leading to a 50% rise in subscription costs.
- Macroeconomic Headwinds
- Ongoing risks related to geopolitical tensions and inflation could impact advertising and consumer spending.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.57
- Gross margin
- 45%
- Operating margin
- 4%
- Segment
- Advertising: $612.7M
- Segment
- Subscriptions: $518.5M
- Segment
- Devices: $117.6M
What they said about what is next.
Management anticipates total net revenue for Q2 2026 will be approximately $1.3 billion, reflecting a nearly 17% increase year-over-year.
The filing reads better than the one before it.
What came before.
- 10-K · February 13, 2026
- Roku shifted further toward a Platform-first model in fiscal 2025: total revenue rose 15% to $4.737 billion driven by Platform revenue growth of 18% to $4.145 billion, Streaming Hours increased 15% to 145.6 billion, and…
- 10-Q · August 1, 2025
- Roku reported Q2 2025 revenue of $1,111,038,000, up $142,859,000 (14.8% YoY) and up $90,366,000 (8.9% sequentially). Gross margin improved to 44.8% and operating loss narrowed to -2.1%; GAAP diluted EPS turned positive…
- 10-Q · May 2, 2025
- Roku reported Q1 2025 revenue of $1,020,672,000, up $139,203,000 (15.8% YoY) but down $179,328,000 (14.9% sequentially). Gross margin was 43.6% and operating margin was -5.7%; GAAP loss per share improved to $(0.19)…
- 10-K · February 14, 2025
- Roku reported full-year 2024 revenue of $4,112,898,000 (up 18% vs. 2023) driven by platform growth, with platform revenue of $3,522,776,000 (86% of net revenue). Key operating metrics improved: Streaming Households rose…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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