Roku

ROKU · Nasdaq · Communication Services · Financials, fiscal 2016 to 2025

ROKU · Last close · October 26, 2026

$157.23

Roku's revenue rose 15.2% to $4.7 billion in fiscal 2025. Its operating margin was −0.1%, up from −5.3% a year earlier. Free cash flow was $478 million, up 124.6%. It paid out $150 million in dividends and buybacks, 31% of free cash flow. The diluted share count rose 4.3%.

Roku, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 13, 2026 · 0001628280-26-008114 Updated October 9, 2026

Revenue

$4.7B

15.2%

Operating margin

−0.1%

5.2 pts

Net income

$88M

Free cash flow

$478M

124.6%

Return on equity

3.4%

8.8 pts

Market cap

$23.9B

Oct 26 close

P/E

66.9x

On $2.35 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Roku does

Roku makes the software and devices that let people stream video on TVs. Its Roku TV operating system runs on its own streaming players and sticks and on TVs made by other brands under license. Roku also sells its own TVs, smart projectors, soundbars and smart home products. It says more than 90 million households stream on its platform, and that it has the most hours streamed among TV streaming platforms in the United States, Canada and Mexico.

It reports two segments. Devices earns revenue from selling players, TVs and related products, mostly through retailers. Amazon, Best Buy, Walmart and Target together made up 81% of Devices revenue in 2025. Platform earns revenue from video advertising and from streaming services distribution, which covers revenue shares on subscriptions, Premium Subscriptions sold on its free Roku Channel, and branded buttons on its remote controls.

Roku also runs its own streaming services: The Roku Channel, Frndly TV (bought in May 2025) and Howdy, an ad-free service launched in August 2025 at $2.99 a month. It sells Roku devices in more than 15 countries. It depends on a small number of content partners for nearly half of the hours streamed.

Its biggest risks, as it describes them

Failing to stand apart from competitors and keep attracting and keeping users.
Advertisers who spend their budgets on traditional TV or other digital platforms instead.
Relying on a small number of content partners for nearly half of streaming hours.
Sole-source suppliers for key chips and parts in its players and TVs.
Operating losses in the past, and none guaranteed to be avoided in the future.

From Roku's annual report on Form 10-K, filed February 13, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2021 to 2025, earnings per share fell 23.4% a year and net income 22.3% a year, as new shares raised the share count by 6% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Roku yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Roku's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Roku's fiscal 2025 free cash flow of $478M, net cash of $2.3B at December 31, 2025 and 151 million diluted shares, from its filings. The scenarios are fitted to Roku: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 14.9% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Movies & Entertainment), plus 1 point for unsteady results (a loss in fiscal 2024); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Roku's own revenue growth, as above. Cautious: growth of 7.5% then 5% a year, 2% after year 10, a 11% discount rate. Base: growth of 15% then 9% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 22.5% then 13% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $157.23
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Roku's earnings per share of $2.35 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 42×, the average of the Communication Services median and Roku's own P/E today for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available.

Earnings growth in the years ahead (% a year) Starts at Roku's revenue growth over the last 3 years, 14.9% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $157.23
Value at this multiple, against the last close: —
Roku's P/E at the last close: 66.9×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	2,146	1,962	2,026	2,160	2,317
Debt incl. finance leases	90	80	0	0	0
Net debt (negative means net cash)	−2,056	−1,882	−2,026	−2,160	−2,317
Net debt to EBITDA	−7.9x	—	—	—	−58.0x
Debt to equity	0.0x	0.0x	0.0x	0.0x	0.0x
Interest coverage	91.2x	−102.9x	−1,085.5x	−530.8x	−3.0x
Current ratio	4.2x	2.7x	2.4x	2.6x	2.8x
Quick ratio	4.1x	2.6x	2.3x	2.5x	2.7x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Roku shares on the open market, and 9 insiders sold $159.1 million, $159.0 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 15, 2026	Dan JeddaCFO & COO	Sold plan	7,000	$152.84	$1.1 million	Form 4
Oct 5, 2026	Charles CollierPresident, Roku Media	Sold plan	20,538	$151.63	$3.1 million	Form 4
Oct 1, 2026	Neil D HuntDirector	Sold plan	2,000	$151.09	$302,186	Form 4
Oct 1, 2026	Matthew C. BanksVP, CAO	Sold plan	554	$152.21	$84,324	Form 4
Sep 15, 2026	Dan JeddaCFO & COO	Sold plan	7,000	$156.81	$1.1 million	Form 4
Sep 4, 2026	Charles CollierPresident, Roku Media	Sold plan	20,538	$156.99	$3.2 million	Form 4
Sep 2, 2026	Charles CollierPresident, Roku Media	Sold plan	7,067	$156.86	$1.1 million	Form 4
Sep 2, 2026	Gilbert FuchsbergPresident, Subscriptions	Sold plan	4,824	$155.64	$750,807	Form 4
Sep 2, 2026	Mustafa OzgenPres, Devices, Prod, and Tech	Sold plan	3,410	$155.64	$530,732	Form 4
Sep 2, 2026	Christopher T. HandmanSVP & General Counsel	Sold plan	2,999	$155.64	$466,764	Form 4
Sep 2, 2026	Matthew C. BanksVP, CAO	Sold plan	546	$155.64	$84,979	Form 4
Sep 1, 2026	Neil D HuntDirector	Sold plan	2,000	$156.30	$312,605	Form 4

The latest 12 of 76 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Fail	Fail
Current ratio rose	Fail	Pass	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Fail	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Pass
F-score	4 of 9	6 of 9	6 of 9
Accruals ratio	−22.3%	−8.1%	−9.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Roku side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Roku	FY25	15.2%	−0.1%	10.1%	—	−58.0x	6
TKO Group	FY25	−3.0%	17.6%	—	5.9%	2.4x	5	Compare
AMC Entertainment	FY25	4.6%	−0.4%	−7.5%	−0.8%	12.3x	2	Compare
Warner Music Group	FY25	4.4%	10.3%	8.0%	12.2%	3.6x	—	Compare
Lionsgate Studios	FY26	1.8%	3.7%	0.4%	8.3%	13.9x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	399	513	742	1,129	1,778	2,765	3,126	3,485	4,113	4,737
Revenue growth	24.6%	28.6%	44.8%	52.0%	57.5%	55.5%	13.1%	11.4%	18.0%	15.2%
Gross profit	121	200	332	495	808	1,409	1,441	1,523	1,806	2,074
Research and development	76	108	171	265	356	462	789	878	720	730
Operating income	−43	−20	−13	−65	−20	235	−531	−792	−218	−6
Net income	−43	−64	−9	−60	−18	242	−498	−710	−129	88
Diluted EPS (US$)	−9.01	−2.24	−0.08	−0.52	−0.14	1.71	−3.62	−5.01	−0.89	0.59
Diluted shares (millions)	5	28	105	115	124	142	138	142	145	151
Cash flow
Cash from operations	−32	37	14	14	148	228	12	256	218	484
Capital expenditure	9	9	18	77	82	40	162	83	5	5
Free cash flow	−41	28	−4	−63	66	188	−150	173	213	478
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0	150
Acquisitions	0	3	0	68	0	137	0	0	0	95
Stock-based compensation	8	11	38	85	134	188	360	370	385	354
Balance sheet at fiscal year end
Cash and short-term investments	35	177	198	516	1,093	2,146	1,962	2,026	2,160	2,317
Debt incl. finance leases	—	0	0	100	95	90	80	0	0	0
Total assets	179	372	465	1,470	2,270	4,082	4,413	4,262	4,304	4,434
Total liabilities	160	220	220	772	942	1,316	1,766	1,936	1,811	1,776
Shareholders' equity	−194	152	245	698	1,328	2,767	2,647	2,326	2,493	2,658
Margins and ratios
Gross margin	30.4%	39.0%	44.7%	43.9%	45.5%	51.0%	46.1%	43.7%	43.9%	43.8%
Operating margin	−10.9%	−3.8%	−1.8%	−5.8%	−1.1%	8.5%	−17.0%	−22.7%	−5.3%	−0.1%
Net margin	−10.7%	−12.4%	−1.2%	−5.3%	−1.0%	8.8%	−15.9%	−20.4%	−3.1%	1.9%
Free cash flow margin	−10.3%	5.5%	−0.6%	−5.6%	3.7%	6.8%	−4.8%	5.0%	5.2%	10.1%
Return on capital	—	—	—	−31.2%	−5.2%	45.2%	−56.9%	−117.5%	—	—
Return on equity	—	—	−4.5%	−12.7%	−1.7%	11.8%	−18.4%	−28.5%	−5.4%	3.4%
Return on assets	—	−23.1%	−2.1%	−6.2%	−0.9%	7.6%	−11.7%	−16.4%	−3.0%	2.0%
Net debt to EBITDA	—	—	—	—	−689.8x	−7.9x	—	—	—	−58.0x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Roku's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Roku.