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Roku, Inc.
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$23.2B
Market Cap
183.9
P/E
PEG
-0.7%
ROCE
3.4%
ROE
0.16
D/E
-0.1%
OPM
0.0%
% from 52W High
85
α RS
🔍 ROKU is showing a high-conviction setup because it matches 4 of 37 tracked screener presets, Sector RRG has Communication Services in the Improving quadrant with the trail still strengthening, and RS Rating is 85. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 4/37 · Communication Services in Improving quadrant · RS Rating 85
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🌏 Global Investor Returns
Currency-adjusted total returns for ROKU including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding ROKU
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 3.82M $361.5M 2.81% Mar 2026
Jim Simons Renaissance Technologies LLC 1.57M $148.1M 0.23% Mar 2026
Stan Druckenmiller Duquesne Family Office 750.2K $71.0M 2.10% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q1 2026
Platform Revenue Growth
28% YoY
+28% YoY
Ad Revenue Growth
27%
+27% YoY
Subscription Revenue Growth
30%
+30% YoY
Adjusted EBITDA Margin
~12%
+6pp YoY (more than doubled)
Free Cash Flow
$148M
Second highest on record
What Went Right
  • Platform revenue grew 28% YoY, ahead of outlook, benefiting from Olympics and Super Bowl.
  • Advertising revenue grew 27% YoY, driven by strong DSP partnerships and home screen monetization.
  • Subscription revenue grew 30% YoY, boosted by Tier 1 partner additions like Apple TV and Peacock.
What to Watch
  • Subscription gross margin compressed to ~41% due to mix shift toward premium subscriptions.
  • Device segment revenue declined 16% YoY with negative gross margins, impacted by higher memory costs and lower ASPs.
  • Q2 comps will be tougher (advertising growth lapped 19% YoY last year), and macroeconomic visibility in H2 is limited.
Management Guidance
  • Q2 platform revenue expected to grow 20% YoY, with both advertising and subscriptions around that level.
  • Full year platform revenue guidance raised to nearly 21% growth (increase of ~$100M or ~3 points).
  • EBITDA and free cash flow are expected to expand; free cash flow expected to exceed adjusted EBITDA for full year.
Investor Lens
The thesis is stronger after this call. Roku delivered exceptional Q1 results with accelerating platform revenue, record free cash flow, and margin expansion. Management raised full-year guidance and expressed confidence in sustaining double-digit growth despite macro uncertainty. The new home screen test shows promising engagement and monetization improvements, and the DSP strategy is broadening revenue sources. Elevated memory costs and device margin pressure remain watch items, but the overall trajectory of the business is clearly improving.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q1 with 28% platform revenue growth.
Revenue
Platform revenue grew 28% year over year in Q1, driven by 27% advertising growth (aided by Olympics and Super Bowl) and 30% subscription revenue growth (including new Tier 1 partners). Total revenue including devices was not broken out, but device revenue declined 16% as expected.
Profitability
Net income was not explicitly reported; however, adjusted EBITDA margin more than doubled to nearly 12% year over year. Free cash flow reached $148 million, the second highest quarterly figure on record, and near 16% free cash flow margin.
Margins
Advertising gross margin improved over 400 basis points to just above 60%, helped by new ad products and efficient campaign delivery. Subscription gross margin declined to ~41% due to mix shift toward higher-revenue, lower-margin premium subscription signups. Overall platform gross margin is expected to remain in the 51%-52% range.
Balance Sheet
Free cash flow of $148 million was highlighted, representing near 16% margin. No specific cash, debt, or CapEx figures were discussed beyond the free cash flow number.
Key Risks
Management flagged elevated memory costs pressuring device margins in the second half, though they claim prior guidance already accounted for this. Visibility into H2 is limited due to macro uncertainty. The mix shift to premium subscriptions is temporarily depressing subscription gross margins.
Outlook
For Q2, platform revenue is expected to grow 20% year over year. Full-year platform revenue guidance was raised to nearly 21% growth, and EBITDA and free cash flow margins are expected to continue expanding.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q1 2026 Q1 2026 2026-04-30
Q1 saw robust platform growth, with advertising up 27% and subscriptions up 30% year-over-year, driving EBITDA margin expansion and record free cash flow. Platform revenue guidance was raised, and new home screen and DSP partnerships are boosting engagement and monetization.
Q4 2025 Q4 2025 2026-02-12
Record 2025 results with 18% platform revenue growth, $421M Adjusted EBITDA, and strong free cash flow. 2026 guidance calls for 21% Q1 and 18% full-year platform revenue growth, with AI and new ad products driving future expansion.
Q3 2025 Q3 2025 2025-10-30
Q3 saw over 17% platform revenue growth, record free cash flow, and positive operating income. Double-digit growth is expected to continue, driven by home screen innovation, ad demand, and premium subscriptions, with new DSP integrations and product launches planned for 2026.
Q2 2025 Q2 2025 2025-07-31
Platform revenue grew 18% year-over-year in Q2, driven by strong video advertising, new ad products, and the integration of Frndly TV. EBITDA margin outlook improved by 180 basis points, with operating income positivity expected in Q4 2025 and full year 2026. The Roku Channel's streaming hours grew 80% in Q2.
Q1 2025 Q1 2025 2025-05-01
Full-year platform revenue and adjusted EBITDA guidance reaffirmed, supported by strong ad and subscription growth, the Frndly TV acquisition, and continued programmatic ad momentum. Platform margins are stable, and the business is well-positioned despite macro and tariff risks.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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