Roku Exceeds Q1 Forecasts and Raises Full-Year Outlook
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Roku reported stronger-than-expected first-quarter earnings, returning to profitability and raising its full-year guidance. The company also surpassed 100 million streaming households and announced a new content deal with the CW Network. Its shares rose more than 10% following the report.
Facts First
- Roku reported Q1 net income of $85.7 million, a reversal from a $27.4 million loss in the same period last year.
- The company raised its full-year outlook for adjusted EBITDA to $675 million from a previous estimate of $635 million.
- Roku surpassed 100 million streaming households worldwide earlier this month, a key metric for its user base.
- A new deal with the CW Network will bring next-day streaming of CW programming to the Roku Channel starting this fall.
- The Platform segment, including advertising and subscriptions, drove growth, with revenue up 28% to $1.13 billion.
What Happened
Roku reported first-quarter revenue of $1.248 billion, a 22% increase year over year, exceeding Wall Street forecasts. The company posted net income of $85.7 million, compared to a net loss of $27.4 million in the first quarter of 2025. Adjusted EBITDA increased 165% to $148.4 million. For the first time, Roku reported separate results for its advertising and subscriptions operating units within its Platform segment. The company also announced a content deal with the CW Network to bring CW programming to the Roku Channel for next-day streaming starting in the fall of 2026.
Why this Matters to You
If you use Roku's streaming platform, you may see more content become available, including new CW series and next-day episodes of shows like 'WWE NXT'. The company's strong financial performance and growing user base suggest it is likely to continue investing in its platform and content offerings. For investors, the raised guidance and return to profitability could be seen as positive signals about the company's trajectory.
What's Next
Roku expects total net revenue for the full year to be approximately $5.5 billion, representing a 16% increase versus 2025. For the second quarter, the company forecasts total net revenue of $1.3 billion, a nearly 17% increase. The Devices business revenue is expected to decrease by 'high-single digits' in the second quarter, while Platform revenue is projected to grow 20%. The new CW programming is scheduled to become available on the Roku Channel in the fall.