Roku soars as Q4 earnings nearly double expectations

Investing.com -- Roku Inc (NASDAQ: ROKU) shares surged 11.5% in after-hours trading Thursday after the streaming platform provider reported fourth-quarter earnings that significantly exceeded analyst expectations, while also issuing strong guidance for 2026.

The streaming technology company posted adjusted earnings per share of $0.53 for the fourth quarter, nearly doubling the analyst consensus of $0.27. Revenue came in at $1.38 billion, matching analyst estimates and representing a 16% increase YoY. Platform revenue, which includes advertising and content distribution, grew 18% YoY to $1.22 billion, while Devices revenue rose 3% to $171 million.

Looking ahead, Roku provided an upbeat outlook, forecasting first-quarter 2026 revenue of $1.2 billion, above the consensus estimate of $1.17 billion. For the full year 2026, the company expects revenue of $5.5 billion, surpassing analyst expectations of $5.34 billion.

"We delivered excellent results in 2025, driven by consistent execution and the differentiation of our leading TV streaming platform," said Anthony Wood, Founder and CEO of Roku. "By expanding our Platform monetization over the last two years, we've unlocked new growth engines and achieved record-breaking financial performance."

The company reported that streaming hours increased 15% YoY to 145.6 billion for the full year 2025. The Roku Channel was the second most popular app on its platform by engagement in the U.S., representing 6.3% of all TV streaming in December 2025, up from 4.6% a year earlier.

Roku also highlighted its progress in advertising, noting that video advertising on its platform grew faster than both the U.S. OTT and broader digital ad markets in 2025. The company expects to reach 100 million streaming households globally in 2026.

For 2026, Roku anticipates Platform revenue to grow 18% YoY to $4.89 billion with gross margin between 51% and 52%, while maintaining its focus on operational discipline and continued investment in platform growth.

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