Roku beats second quarter estimates ahead of Fox acquisition

Investing.com -- Roku Inc (NASDAQ: ROKU) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $1.08 compared to the consensus estimate of $0.60, and revenue of $1.35 billion versus the $1.3 billion estimate.

Total net revenue increased 22% YoY, while platform revenue, which includes advertising and subscriptions, grew 25% YoY to $1.22 billion. The company generated net income of $164 million and adjusted EBITDA of $254 million, both record highs. Streaming hours reached 37.9 billion, up 7% YoY.

Shares of Roku traded flat in after-hours trading Thursday. The company is being acquired by Fox Corporation under a definitive agreement announced on June 15, 2026.

Advertising revenue grew 25% YoY to $673 million, with advertising gross margin expanding to 62.4%, up approximately 650 basis points YoY. The company said third-party demand-side platforms accounted for nearly three-quarters of in-stream video ad spend on its platform. Political advertising in the second quarter exceeded the comparable quarter from the 2024 election cycle.

Subscriptions revenue increased 26% YoY to $548 million. The company launched new features during the quarter, including pause and resume capabilities for live programming on FOX One, Apple TV, and Peacock.

"With our open and partner-friendly platform, we succeed when our partners succeed," said Anthony Wood, founder and CEO. "We are committed to connecting viewers to great entertainment while giving publishers and advertisers effective ways to engage them."

Devices revenue was $134 million, down 1% YoY, with gross margin of 20.1%, which benefited from a tariff refund. Roku did not provide financial guidance due to the pending Fox acquisition.

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