Key Highlights

  • Roku reported second-quarter 2026 revenue of about $1.35 billion, up 22%, with platform revenue of $1.22 billion, up 25%.
  • Net income was $164.2 million, described as a record quarterly profit, compared with $10.5 million a year earlier.
  • Fox's pending takeover offers each Roku share $160.00, made up of $96.00 in cash plus 0.9693 Fox Class A shares.
  • Closing is expected in the first half of calendar 2027, and Roku is giving no outlook during the pending deal.

Roku (NASDAQ:ROKU) published its second-quarter 2026 results on August 6, 2026, and the numbers arrived with an unusual caveat: the company is the subject of a pending takeover by Fox Corporation, announced on June 15, 2026.

Roku said it would not hold an earnings call or provide a financial outlook. That leaves the reported figures, and the terms of the proposed sale, as the main verifiable information about the company's position.

The Business Behind the Streaming Platform

Roku operates a streaming platform, best known for its television operating system and players, through which viewers reach channels and services. It earns platform revenue from advertising and from subscriptions and other services sold through the platform, and it also sells streaming devices. As a technology-enabled media distributor, it sits between content owners, advertisers and households, which makes its results sensitive to both streaming viewing and the advertising market.

Second-quarter Results

Total revenue was about $1.35 billion, up 22%. Platform revenue was $1.22 billion, up 25%, made up of advertising revenue of $673 million, up 25%, and subscription revenue of $548 million, up 26%. Platform gross margin was 53%.

Net income was $164.2 million, described as a record quarterly profit, compared with $10.5 million in the second quarter of 2025, and diluted earnings per share were $1.08. Free cash flow was $704 million for the twelve months to the end of the quarter. On engagement, Roku reached more than 100 million streaming households, and 37.9 billion hours were streamed in the quarter, up 7%. Roku is not providing guidance while the transaction is pending, so these are the latest formal financial data available.

The Fox Transaction

Under the agreement filed with the US Securities and Exchange Commission, each Roku share will receive $160.00 in a combination of cash and Fox stock: $96.00 in cash plus 0.9693 shares of Fox Class A common stock. Fox put the transaction at approximately $22 billion in enterprise value. After completion, existing Fox shareholders are expected to own about 73% of the combined company and Roku shareholders about 27%. Roku's founder, chairman and chief executive Anthony Wood is due to join the Fox board.

Fox has arranged $12.0 billion of committed bridge financing from Morgan Stanley Senior Funding, expects pro forma net leverage of roughly 2.8 times including synergy credit, and anticipates run-rate cost synergies of about $400 million. Closing is expected in the first half of calendar 2027.

Risks and Open Conditions

The deal requires approval from shareholders of both companies, United States and certain non-United States regulatory clearances, and customary closing conditions, so completion is not guaranteed and timing could change. Because part of the consideration is paid in Fox shares, the value each Roku holder ultimately receives will depend on Fox's share price rather than being fixed at $160.00. Operating risks remain in the meantime, including the advertising cycle, competition among streaming platforms, dependence on partner content and the cost of hardware. Integration afterwards is a further execution risk.

Roku Awaiting Fox: Conditions and Timing

Developments to follow include the filing of proxy materials, shareholder votes, any regulatory review, Roku's third-quarter figures on platform revenue and subscription growth, and Fox's progress on financing. Anyone comparing the two companies should also allow for differences in reporting calendars.