Roku, the top independent streaming device and content platform company, delivered third-quarter 2025 financial results that exceeded analyst expectations — and marked the company’s first quarter with positive operating income since 2021.
For Q3, Roku posted revenue of $1.21 billion, up 14%, and net income of $24.8 million (versus a net loss of $35.8 million in the year-earlier period). That translated to earnings per diluted share of 16 cents. On average, Wall Street analysts expected revenue of $1.1 billion and adjusted earnings of 9 cents per share, per financial data provider LSEG.
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Helping fuel the growth was the continued uptick in usage: Total streaming hours on Roku for Q3 were 36.5 billion, up 12% year over year. For the full year 2025, Roku raised its outlook for Platform revenue to $4.11 billion (versus $4.075 billion previously) and adjusted EBITDA to $395 million (up from $375 million).
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Investors, however, were evidently hoping for a bigger beat and stronger forecast by Roku, as the company’s shares were down more than 6% in after-hours trading.
Roku’s Platform revenue (which includes ad sales, content sales and subscription-revenue sharing) was $1.065 billion for the quarter, up 17%, while Devices revenue declined 5% to $146 million. Platform segment operating margin was 51.7% (versus 54.2% in the year-ago period) and Devices margin was -15.7%. Total operating expenses were flat at $515.4 million.
All told, Roku eked out an operating profit of $9.5 million for the quarter. Gross profit was $525 million, up 9%.
“Looking ahead, we are confident in our ability to deliver double-digit Platform revenue growth while increasing operating margins in 2026 and beyond,” Roku CEO Anthony Wood and COO and CFO Dan Jedda wrote in the quarterly shareholder letter.
The company said video advertising on the Roku platform grew faster year over year than the broader U.S. streaming and digital ad markets. “By expanding integrations with third‑party demand‑side platforms (DSPs)” — such as through its recent pact with Amazon — we are increasing ad demand and meeting enterprise and other clients where they choose to transact,” the execs said.
For Q4, Roku expects total net revenue of approximately $1.35 billion, which would represent 12% growth. Within that, Platform revenue is projected to grow 15% year-over-year with an estimated gross margin of approximately 52%. Excluding political advertising and Roku’s acquisition of Frndly TV, the Q4 Platform revenue growth rate is expected to “step up slightly” from Q3. Roku projects Q4 gross profit of approximately $575 million and adjusted EBITDA of roughly $145 million.
During the quarter, Roku launched Howdy, a $2.99-per-month subscription video service with no ads that includes nearly 10,000 hours of TV shows and movies from Warner Bros., Lionsgate and other partners. It’s aimed at tucking in as a lower-cost alternative to subscription VOD services like Netflix or HBO Max.
“We see a significant untapped opportunity for a low-cost, ad-free streaming service, and we are leveraging the power of our platform to drive cost-efficient sign-ups and engagement, similar to our success building The Roku Channel,” the execs wrote in the Q3 letter.
The company said the Roku Channel remained the No. 2 app on our platform by engagement in the U.S. (after YouTube). The Roku Channel expanded its lineup with new content from A&E, including a channel featuring “The First 48,” which was “one of our most successful new channel launches,” according to the company. The Roku Channel also launched channels for “Shark Tank” and “NYPD Blue,” and added “Law & Order,” which was the first FAST channel dedicated to a series in the Dick Wolf universe.
Among Roku originals, the company said “Solo Traveling With Tracee Ellis Ross,” which premiered in August, became its most‑watched unscripted original (and the show recently received a Critic’s Choice nomination and has been renewed for a second season).
Last month, Roku announced the hiring of Lisa Holme as Roku Media’s head of content, overseeing the company’s slate of content businesses globally, including original programming, content acquisitions and partnerships, sports, branded content, and “This Old House” content and studios. Holme, , a veteran of Warner Bros. Discovery and Hulu, took over the role after David Eilenberg, Roku Media’s previous head of content, exited in June to rejoin ITV America.