Roku Q3 profit rises as Premium Subscriptions and ad revenue grow
Roku reported third-quarter net income of $183.3 million and total net revenue of $1.50 billion, up 24% from a year earlier. Adjusted EBITDA was $248.8 million. The company said it will not host an earnings call or give a financial outlook while its pending deal with Fox is outstanding.
Key takeaways
- Roku (ROKU) reported third-quarter 2026 net income of $183.3 million and total net revenue of $1.50 billion, up 24% from a year earlier. Platform revenue rose 23% to $1.31 billion. The company will not hold an earnings call or give a financial outlook while its pending acquisition by Fox Corporation is outstanding.
Roku (ROKU) reported third-quarter 2026 results on Nov. 2, showing total net revenue of $1.50 billion, up 24% from a year earlier, and net income of $183.3 million, up from $24.8 million a year earlier.
Shares were down 0.8% in after-hours trading as of 4:14 p.m. ET, from a regular-session close of $155.51.
The company said Platform revenue grew 23% to $1.31 billion, with both Advertising and Subscriptions up 23%. Gross profit was $648.5 million, up 24% from a year earlier.
Roku said Adjusted EBITDA was $248.8 million, and free cash flow on a trailing twelve-month basis was $795.7 million.
Segment results
Advertising revenue was $727.4 million, up 23% from a year earlier. The company said its gross margin was 63.2%.
Subscriptions revenue was $580.9 million, up 23%. Gross margin was 40.9%, down roughly 180 basis points, which the company attributed mainly to a shift toward Premium Subscriptions.
Devices revenue was $193.7 million, up 33% from a year earlier, with a gross margin of negative 25.1%. The company said elevated memory costs drove the loss.
Guidance
The company said it will not host an earnings call and will not provide a financial outlook, in light of the pending transaction with Fox Corporation announced on June 15, 2026.
The company said in its shareholder letter that it remains on track for the second half 2026 forecast it provided in the proxy statement.
Pending acquisition by Fox
Founder and CEO Anthony Wood said the pending acquisition by Fox is "an extraordinary opportunity to accelerate our vision, allowing us to scale faster and innovate more aggressively for viewers, partners, and advertisers."
The company said in its shareholder letter that Roku is the #1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed.
Roku has reported net income in each of the last three quarters, rising from $24.8 million in the third quarter of 2025 to $164.2 million in the second quarter of 2026, according to its SEC filings.