Key Highlights

  • ROKU reported third-quarter total net Revenue of $1.502 billion, up 24% from $1.211 billion.
  • Net income was $183.3 million, or $1.20 per diluted share, compared with $24.8 million, or $0.16, a year earlier.
  • Adjusted EBITDA reached $248.8 million, against $116.9 million in the prior-year quarter.
  • Platform revenue rose 23% to $1.308 billion, with Advertising at $727.4 million and subscriptions at $580.9 million.
  • Streaming hours grew 9% to 39.9 billion, and trailing twelve-month free Cash Flow was $795.7 million.

Profit Jumps to $183 Million as Revenue Climbs 24%

Roku (NASDAQ:ROKU) disclosed results for the third quarter ended Sep 30, 2026 in its quarterly filing dated Nov 2, 2026. Total net revenue was $1.502 billion, up 24% from $1.211 billion, and Gross Profit rose 24% to $648.5 million, a gross Margin of about 43% (calculated).

Income from operations reached $164.1 million compared with $9.5 million a year earlier. Net Income was $183.3 million, or $1.20 per diluted share, versus $24.8 million, or $0.16. Operating expenses fell to $484.4 million from $515.4 million, led by a drop in sales and Marketing spending.

The streaming platform company, which operates a TV operating system and sells ads and subscriptions on it, also earns revenue from streaming players and Roku-branded TVs. Adjusted EBITDA more than doubled to $248.8 million, a figure that excludes stock-based compensation, a $22.3 million Lease Credit and $13.6 million of merger-related costs.

Advertising Impressions Up 33% Even as Price per Ad Slips 7%

Advertising revenue grew 23% to $727.4 million. Video ad impressions increased 33% on higher engagement, while the average price per impression declined 7% because of product and country mix. Advertising gross profit improved 33% to $459.4 million.

Subscriptions revenue also rose 23% to $580.9 million, helped by a 7% increase in subscriptions and a 27% rise in the average price per subscription. Owned and operated services, including one launched in August 2025, contributed to the gain. Subscriptions gross profit grew a slower 18% to $237.7 million as licensing and content costs climbed 27%.

Streaming hours reached 39.9 billion, up 9% from 36.5 billion.

Devices Revenue Rises 33% but Gross Loss Widens to $48.6 Million

Devices revenue increased 33% to $193.7 million. Unit shipments fell 21%, led by weaker streaming player sales, but the average selling price rose 71% on a heavier mix of Roku-made TVs. The devices segment posted a gross loss of $48.6 million, versus a loss of $22.9 million a year earlier.

Platform gross profit totaled $697.1 million, up 27%, which more than offset the devices shortfall. Through nine months, revenue was $4.106 billion, up 23%, and net income was $433.3 million compared with $7.9 million.

Cash Position and Pending Merger Terms Shape the Next Steps

Roku ended September with $2.519 billion in cash and cash equivalents and $201.8 million in short-term investments, and it had borrowed nothing under its $300 million revolving credit facility. Operating Cash Flow for nine months was $703.2 million, and the company repurchased $162.7 million of stock before suspending its buyback program after signing a merger agreement.

Under the Jun 14, 2026 agreement with a large US media company, each Roku share converts into 0.9693 of an acquirer Class A share plus $96.00 in cash. Roku holders would own about 27% of the combined company. Closing depends on antitrust clearance and other conditions, and a termination fee of $866.1 million applies in specified cases, so regulatory progress is the key item to watch.