Roku Inc. reported fourth‑quarter 2025 results with total revenue of $1.395 billion, a 16% year‑over‑year increase, and earnings per share of $0.53, beating the consensus estimate of $0.28 by $0.25—an 89‑96% surprise that reflects strong platform monetization and disciplined cost management.
Platform revenue grew 18% to $4.145 billion, while device revenue increased 3% to $171 million, up from $166 million in the prior quarter and flat year‑over‑year at $592 million. The shift toward higher‑margin platform services is evident, as the company continues to expand its advertising and streaming distribution business while the legacy device segment remains relatively stable.
Adjusted EBITDA margin expanded by 255 basis points to 52.8% for the quarter, driven by the higher mix of platform contracts and improved operational leverage. The gross margin for the platform segment reached 52.8%, underscoring the profitability of the company’s high‑margin business model.
Management raised its full‑year 2026 revenue guidance to $5.5 billion, above the consensus estimate of $5.336 billion, and reaffirmed confidence in double‑digit platform growth. The guidance reflects expectations of a rebound in digital advertising and continued demand for Roku’s streaming services.
"We delivered excellent results in 2025, driven by consistent execution and the differentiation of our leading TV streaming platform. By expanding our Platform monetization over the last two years, we've unlocked new growth engines and achieved record‑breaking financial performance," said CEO Anthony Wood and CFO Dan Jedda in the shareholder letter released on February 12, 2026.
The results signal a successful transition from a low‑margin hardware business to a high‑margin platform company. The continued growth in platform revenue, coupled with margin expansion, positions Roku to capitalize on the broader shift toward ad‑supported streaming. While the device segment shows modest growth, the company’s strategic focus on platform monetization and the rebound in digital advertising provide a strong foundation for long‑term growth.
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