Roku (ROKU) Q2 2026 earnings summary

Executive summary

• Revenue grew 22% year-over-year to $1.35 billion for Q2 2026, driven by strong gains in advertising and subscriptions.

• Net income for the quarter was $164.2 million, reversing a net loss of $5.8 million in Q2 2025.

• The company entered into a merger agreement with Fox Corporation, expected to close in the first half of 2027.

Financial highlights

• Advertising revenue increased 25% year-over-year to $672.8 million, with video ad impressions up 40%.

• Subscriptions revenue rose 22% to $548.2 million, driven by an 11% increase in subscriptions and a 25% rise in average price per subscription.

• Devices revenue declined 1% to $133.7 million, as device shipments fell 31% but average selling prices rose 35%.

• Gross profit increased 31% to $413.9 million, with platform gross margin at 39% and devices at 2%.

• Adjusted EBITDA for the quarter was $254.3 million, up from $78.2 million a year ago.

• Free cash flow for the trailing twelve months reached $704.1 million, up from $392.0 million in the prior year.

Outlook and guidance

• The merger with Fox is anticipated to close in the first half of 2027, subject to regulatory and shareholder approvals.

• Management expects continued growth in platform revenue and profitability, with a focus on expanding advertising and subscription services.