Key Highlights

  • Net Revenue rose 24.1% to USD 1,502.0 million, with platform revenue up 22.9% to USD 1,308.3 million.
  • Advertising revenue rose 23.0% to USD 727.4 million, and subscription revenue rose 22.7% to USD 580.9 million.
  • Operating income was USD 164.1 million versus USD 9.5 million, and Net Income was USD 183.3 million.
  • Devices posted a gross loss of USD 48.6 million, with inventory provisions of USD 41.1 million recorded in the quarter.

Quarter in Numbers

Roku, Inc. (NASDAQ:ROKU), a television streaming platform, reported third-quarter 2026 total net revenue of USD 1,502.0 million, up from USD 1,210.6 million. Platform revenue was USD 1,308.3 million versus USD 1,064.6 million, made up of Advertising revenue of USD 727.4 million versus USD 591.2 million and subscription revenue of USD 580.9 million versus USD 473.4 million. Devices revenue rose 32.7% to USD 193.7 million from USD 146.0 million.

Total cost of revenue rose to USD 853.5 million from USD 685.7 million. Platform Gross Profit was USD 697.1 million versus USD 547.8 million, a platform gross Margin of 53.3% versus 51.5% by our calculation. Within it, advertising gross profit was USD 459.4 million versus USD 345.5 million, a margin of 63.2% versus 58.4% by our calculation and the largest contributor to platform margin improvement, and subscription gross profit was USD 237.7 million versus USD 202.3 million, a margin of 40.9% versus 42.7%. Devices had a gross loss of USD 48.6 million versus USD 22.9 million, so total gross profit was USD 648.5 million versus USD 524.9 million.

Operating Expenses and Income

Operating expenses fell to USD 484.4 million from USD 515.4 million. Research and Development expense was USD 186.9 million versus USD 182.2 million, sales and Marketing expense fell to USD 190.9 million from USD 242.1 million, and general and administrative expense rose to USD 106.7 million from USD 91.1 million. Income from operations was USD 164.1 million versus USD 9.5 million. Total other income, net, was USD 23.3 million versus USD 28.6 million, and income before income taxes was USD 187.4 million versus USD 38.0 million.

Income tax expense fell to USD 4.0 million from USD 13.2 million, and net income was USD 183.3 million versus USD 24.8 million. By our calculation, the net margin was 12.2% versus 2.0%.

Nine-Month View and Cost Items

For the nine months, total net revenue was USD 4,105.6 million versus USD 3,342.3 million, gross profit was USD 1,887.2 million versus USD 1,467.6 million, income from operations was USD 362.0 million versus a loss of USD 71.6 million, and net income was USD 433.3 million versus USD 7.9 million.

Inventory provisions charged to devices cost of revenue were USD 41.1 million versus USD 17.0 million for the quarter and USD 81.9 million versus USD 27.4 million for the nine months. In the quarter the company terminated a portion of a previously impaired corporate office Lease and recorded an Impairment Credit of USD 22.3 million within operating expense. Stock-based compensation was USD 79.3 million versus USD 88.0 million.

Balance Sheet and Margin Indicators

Cash and cash equivalents were USD 2,518.8 million, with short-term investments of about USD 201 million in addition. Items to track include devices margins and inventory provisions, subscription gross margin, advertising growth against sales and marketing efficiency, and one-time credits such as the lease impairment Reversal that supported operating income.