$ROKU · ROKU, INC
Roku filed its 10-Q for Q3 FY2026, reporting $1.502B in total net revenue (+24.1% YoY), GAAP net income of $183.3M, and diluted EPS of $1.20. Platform revenue reached $1.308B driven by advertising ($727.4M, +23%) and subscriptions ($580.9M, +22.7%). Operating income swung to $164.1M from $9.5M a year ago, with operating margin at 10.9%. For the nine months, net income totaled $433.3M versus $7.9M in the prior-year period.
- Q3 revenue of $1.502B grew 24.1% YoY, with Platform revenue up 22.9% to $1.308B.
- GAAP net income reached $183.3M vs. $24.8M a year ago; diluted EPS of $1.20 vs. $0.16.
- Operating income swung to $164.1M from $9.5M, with operating margin expanding to 10.9%.
- Advertising revenue jumped 23% YoY to $727.4M; subscription revenue rose 22.7% to $580.9M.
- Nine-month net income hit $433.3M vs. $7.9M in the prior-year period, with $362M in operating income.
Extended-hours trading shows ROKU at $154.50, down 0.66% from the $155.52 regular close — a modest fade despite the strong earnings beat, suggesting the market may have priced in much of the recovery or is weighing forward-looking risks.
Roku's Q3 results confirm a structural profitability inflection: the platform business is scaling rapidly with both advertising and subscription engines firing, while nine-month net income of $433M erases years of accumulated losses.
Roku's 24% revenue growth and swing to GAAP profitability underscore the accelerating shift of ad dollars from linear TV to connected TV platforms, with Roku's dual monetization engine — advertising and subscriptions — both delivering 20%+ growth.
The filing flags a proposed transaction with Fox Corporation whose timing and completion are uncertain. Customer concentration risk persists: two customers (J and B) account for 12% and 11% of accounts receivable. Macro risks including tariffs, inflation, and geopolitical conflicts could pressure advertiser spend and hardware margins.