Roku (ROKU) Q1 2026 earnings summary

Executive summary

• Achieved over 100 million streaming households and delivered an outstanding Q1, with strong execution on monetization initiatives and platform growth.

• Net revenue for Q1 2026 was $1.25 billion, up 22% year-over-year, driven by strong growth in Advertising and Subscriptions, partially offset by a decline in Devices revenue.

• Net income was $85.7 million, compared to a net loss of $27.4 million in Q1 2025, reflecting improved profitability and operational leverage.

• Platform revenue (Advertising + Subscriptions) grew 28% year-over-year to $1.13 billion, while Devices revenue declined 16% to $117.6 million.

• Streaming Hours increased 8% year-over-year to 38.7 billion, indicating higher user engagement.

Financial highlights

• Q1 EBITDA margins more than doubled year-over-year to nearly 12%, with adjusted EBITDA at $148.4 million, up from $56.0 million in Q1 2025.

• Free cash flow reached $148 million for Q1 and $538.8 million for the trailing twelve months, with a margin near 16%.

• Gross profit rose 27% year-over-year to $564.9 million, with Platform gross profit up 26%.

• Advertising gross margin exceeded 60%, up over 400 basis points year-over-year, and is expected to remain at or above this level.

• Subscription gross margin was just north of 40%, down due to mix shift but expected to stabilize at 41%-42%.

Outlook and guidance

• Q2 platform revenue expected to grow 20% year-over-year, with similar growth in subscriptions and advertising.

• Full-year platform revenue guidance raised by over $100 million to nearly 21% growth.

• EBITDA and EBITDA margin guidance increased; free cash flow expected to exceed adjusted EBITDA for the year.

• Conservative outlook for H2 due to macro uncertainty and pending visibility into political ad spend.

• Existing cash, investments, and undrawn credit facility are expected to meet capital needs for at least the next twelve months.