olivLaw · US equity research
Roku, Inc. ROKU
Cable & Other Pay Television Services · SIC 4841 · Vertical: Cable & Other Pay Television Services (SIC 4841)
Roku, Inc. is the leading TV streaming platform in the United States, Canada and Mexico by hours streamed, with 145.6 billion streaming hours in fiscal 2025. In the second quarter of 2026 Platform revenue grew 25% year over year to 1,221 million USD, and trailing twelve-month Free Cash Flow reached 704.1 million USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Roku, Inc. (ROKU) stock was 162.77 USD (+1.50% on the day), with market capitalisation 24.1 bn USD, P/E 48.2 on diluted EPS of 3.38 USD over the last 12 months, beta 1.82, 52-week range 82.93–162.77 USD. Latest reported quarter (Q3 2026): revenue of 1.5 bn USD (+24.1% YoY), net income of 183.3 m USD (+638.9% YoY), diluted EPS 1.20 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 69.1
- strong (55–70)
- Bollinger (20, 2)
- 150.69 – 161.59
- above the upper band · %B 1.11 · band width 7.0%
- SMA 50 / 200
- 155.21 / 128.56
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 1.39 / 0.93
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.1% | −1.1% | +7.2 pp | — |
| 3 months | +10.8% | −0.5% | +11.2 pp | — |
| 6 months | +27.2% | +4.4% | +22.8 pp | — |
| Year to date | +50.0% | +12.3% | +37.7 pp | — |
| 1 year | +53.4% | +13.5% | +39.9 pp | −16.0% |
| 3 years | +92.1% | +76.4% | +15.6 pp | −32.1% |
| 5 years | −41.6% | +63.7% | −105.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.0 bn | 1.1 bn | 1.2 bn | 1.4 bn | 1.2 bn | 1.4 bn | 1.5 bn |
| Cost of revenue | 688.5 m | 575.6 m | 613.4 m | 685.7 m | 788.1 m | 683.9 m | 681.0 m | 853.5 m |
| Gross profit | 512.6 m | 445.0 m | 497.7 m | 524.9 m | 606.8 m | 564.9 m | 673.7 m | 648.5 m |
| Research & development | 185.4 m | 184.6 m | 178.0 m | 182.2 m | 184.6 m | 189.5 m | 179.7 m | 186.9 m |
| Operating income | -39.1 m | -57.7 m | -23.3 m | 9.5 m | 66.0 m | 51.8 m | 146.2 m | 164.1 m |
| Depreciation & amortisation | 11.6 m | 11.7 m | 11.4 m | 11.5 m | 11.0 m | 13.9 m | 10.4 m | 10.7 m |
| Interest expense | 411.0 k | 433.0 k | 460.0 k | 455.0 k | 558.0 k | 624.0 k | 475.0 k | 593.0 k |
| Pre-tax income | -25.9 m | -40.5 m | 4.7 m | 38.0 m | 91.7 m | 88.6 m | 169.4 m | 187.4 m |
| Income tax | 9.7 m | -13.1 m | -5.8 m | 13.2 m | 11.2 m | 2.9 m | 5.2 m | 4.0 m |
| Net income | -35.5 m | -27.4 m | 10.5 m | 24.8 m | 80.5 m | 85.7 m | 164.2 m | 183.3 m |
| Diluted EPS | -0.24 ≈ | -0.19 | 0.07 | 0.16 | 0.53 ≈ | 0.57 | 1.08 | 1.20 |
| Operating cash flow | 79.3 m | 138.7 m | 109.7 m ≈ | 127.6 m ≈ | 107.7 m | 199.1 m | 284.6 m ≈ | 219.4 m ≈ |
| Capex | 2.5 m | 1.9 m | 1.1 m ≈ | 1.1 m ≈ | 1.1 m | 3.1 m | 3.8 m ≈ | 1.4 m ≈ |
| Share repurchases | 0 | 0 | 0 ≈ | 50.0 m ≈ | 100.0 m | 100.0 m | 62.7 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 11 percentile of its own 9-quarter history (min 45.1, median 133.7, max 423.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 742.5 m | 1.1 bn | 1.8 bn | 2.8 bn | 3.1 bn | 3.5 bn | 4.1 bn | 4.7 bn |
| Revenue YoY | +44.8% | +52.0% | +57.5% | +55.5% | +13.1% | +11.5% | +18.0% | +15.2% |
| Net income | -8.9 m | -59.9 m | -17.5 m | 242.4 m | -498.0 m | -709.6 m | -129.4 m | 88.4 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | −305.5% | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | -0.52 | -0.14 | 1.71 | -3.62 | -5.01 | -0.89 | 0.59 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | −311.7% | unavailable | unavailable | unavailable |
| net % | -1.2% | -5.3% | -1.0% | 8.8% | -15.9% | -20.4% | -3.1% | 1.9% |
| Free cash flow | -4.4 m | -63.5 m | 65.8 m | 188.0 m | -149.9 m | 173.2 m | 213.0 m | 478.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.6 bn USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 2.7 bn USD
- Total assets
- 4.4 bn USD
- Debt / equity
- unavailable
- Current ratio
- 2.75x
- ROE
- 3.4%
- ROA
- 2.0%
- FCF margin
- 10.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 2.8 bn | 3.1 bn | 3.5 bn | 4.1 bn | 4.7 bn | SEC (XBRL)· 13 Feb 2026verified |
| Cost of revenue | 970.2 m | 1.4 bn | 1.7 bn | 2.0 bn | 2.3 bn | 2.7 bn | SEC (XBRL)· 13 Feb 2026verified |
| Gross profit | 808.2 m | 1.4 bn | 1.4 bn | 1.5 bn | 1.8 bn | 2.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Research & development | 355.8 m | 461.6 m | 788.9 m | 878.5 m | 720.1 m | 729.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Operating income | -20.3 m | 235.1 m | -530.9 m | -792.4 m | -218.2 m | -5.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Depreciation & amortisation | 21.7 m | 25.4 m | 31.0 m | 53.3 m | 48.5 m | 45.6 m | SEC (XBRL)· 13 Feb 2026verified |
| EBITDA | 1.4 m ≈ | 260.5 m ≈ | -499.9 m ≈ | -739.1 m ≈ | -169.7 m ≈ | 40.0 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Interest expense | — | — | 5.2 m | 730.0 k | 411.0 k | 1.9 m | SEC (XBRL)· 13 Feb 2026verified |
| Pre-tax income | -18.5 m | 236.6 m | -492.3 m | -699.4 m | -120.0 m | 93.9 m | SEC (XBRL)· 13 Feb 2026verified |
| Income tax | -945.0 k | -5.8 m | 5.7 m | 10.1 m | 9.4 m | 5.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Net income | -17.5 m | 242.4 m | -498.0 m | -709.6 m | -129.4 m | 88.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Diluted EPS | -0.14 | 1.71 | -3.62 | -5.01 | -0.89 | 0.59 | SEC (XBRL)· 13 Feb 2026verified |
| Weighted average diluted shares | 124.0 m | 141.7 m | 137.7 m | 141.6 m | 144.6 m | 150.9 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.1 bn | 2.1 bn | 2.0 bn | 2.0 bn | 2.2 bn | 1.6 bn | SEC (XBRL)· 13 Feb 2026verified |
| Receivables | 523.9 m | 752.4 m | 760.8 m | 816.3 m | 812.5 m | 879.9 m | SEC (XBRL)· 13 Feb 2026verified |
| Inventories | 53.9 m | 50.3 m | 106.7 m | 92.1 m | 158.3 m | 114.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Current assets | 1.7 bn | 3.1 bn | 3.0 bn | 3.1 bn | 3.2 bn | 3.4 bn | SEC (XBRL)· 13 Feb 2026verified |
| Property, plant & equipment, net | 155.2 m | 177.6 m | 335.0 m | 264.6 m | 213.7 m | 173.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Goodwill | 73.1 m | 161.5 m | 161.5 m | 161.5 m | 161.5 m | 309.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Intangibles (excl. goodwill) | 62.2 m | 84.1 m | 58.9 m | 41.8 m | 27.5 m | 50.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Total assets | 2.3 bn | 4.1 bn | 4.4 bn | 4.3 bn | 4.3 bn | 4.4 bn | SEC (XBRL)· 13 Feb 2026verified |
| Accounts payable | 112.3 m | 124.9 m | 164.8 m | 385.3 m | 274.0 m | 158.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Short-term debt | 4.9 m | 9.9 m | 80.0 m | 0 | — | — | SEC (XBRL)· 16 Feb 2024verified |
| Long-term debt | 89.9 m | 80.0 m | 0 | — | — | — | SEC (XBRL)· 16 Feb 2023verified |
| Current liabilities | 520.3 m | 729.6 m | 1.1 bn | 1.3 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 13 Feb 2026verified |
| Total liabilities | 942.5 m | 1.3 bn | 1.8 bn | 1.9 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 13 Feb 2026verified |
| Equity | 1.3 bn † | 2.8 bn † | 2.6 bn † | 2.3 bn † | 2.5 bn † | 2.7 bn † | SEC (XBRL)· 13 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 148.2 m | 228.1 m | 11.8 m | 255.9 m | 218.0 m | 483.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Capex | 82.4 m | 40.0 m | 161.7 m | 82.6 m | 5.1 m | 5.3 m | SEC (XBRL)· 13 Feb 2026verified |
| Free cash flow | 65.8 m ≈ | 188.0 m ≈ | -149.9 m ≈ | 173.2 m ≈ | 213.0 m ≈ | 478.4 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Investing cash flow | -81.3 m | -176.8 m | -201.7 m | -92.6 m | -25.1 m | -782.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Financing cash flow | 509.0 m | 1.0 bn | 8.4 m | -61.2 m | -89.2 m | -280.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Share repurchases | — | — | — | 0 | 0 | 150.0 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 24.1 bn USD
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 14.82 – 58.91 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/E14.82 – 58.91 (Mid 36.08)4 companies used · median multiple 10.7x · quartiles 4.4x – 17.4xADEA, CCZ, CHTR, PAAI
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 56.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 9.3% | 83 (vs peers) | 11% |
| FCF conversion · Quality | 156.0% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 14.9% | 100 (on a fixed band) | 15% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 190.2x | 100 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 2.7x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 48.2x | 0 (on a fixed band) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.3% | 42 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 1.1% | 16 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet100/100 · 2/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality92/100 · 2/3 factors with a value
- Returns· partial16/100 · 1/2 factors with a value
- Valuation19/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Roku, Inc. (ROKU). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 4.7 bn USD in 2025; YoY growth 15.2%; net margin 9.3%; ROE 18.2%.
The estimated value range is 14.82–58.91 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 36.08 USD, the price of 162.77 USD leaves a potential of -77.8% (value / price − 1) and a margin of safety of -351.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 9.3%
- FCF conversion: 156.0%
- Revenue CAGR 3Y: 14.9%
- Interest coverage: 190.2x
- Current ratio: 2.7x
What contradicts it
- P/E (TTM): 48.2x
- Shareholder yield (distributions): 1.1%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Payout ratio (FCF).
Versus the vertical median
Cable & Other Pay Television Services (SIC 4841) · same industry (4-digit SIC) · compared with 12 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WBDWarner Bros. Discovery, Inc. | 77.7 bn | — | -9.2% | -8.8% | −5.1% | unavailable / unavailable |
| CHTRCharter Communications, Inc. | 32.6 bn | 3.1 | 29.7% | 9.1% | −0.6% | −40% / −70% |
| ROKURoku, Inc. | 24.1 bn | 48.2 | 18.2% | 9.3% | +15.2% | +53% / +92% |
| ADEAAdeia Inc. | 1.9 bn | 16.6 | 25.9% | 25.0% | +17.9% | +37% / +84% |
| OPTUOptimum Communications, Inc. | 188.1 m | — | — | -58.1% | −4.1% | −64% / −70% |
| PAAIThe Arena Group Holdings, Inc. | 43.8 m | 4.8 | — | 9.3% | +698.2% | −78% / −60% |
| CABOCable One, Inc. | 29.8 m | — | -126.2% | -72.8% | −4.9% | −96% / −99% |
| AMCXAMC Global Media Inc. | — | — | -2.1% | -0.9% | −4.5% | −5% / −44% |
| LILALiberty Latin America Ltd. | — | — | -32.1% | -3.9% | −0.1% | +47% / +88% |
| LBTYALiberty Global Ltd. | — | — | -22.3% | -44.4% | +12.4% | −16% / +16% |
| GLIBALiberty Capital Corp | — | — | -21.0% | -32.5% | +3.0% | −31% / unavailable |
| RCIRogers Communications Inc. | — | — | 49.0% | 31.8% | +5.4% | −12% / −20% |
| CCZComcast Corporation | — | 20.1 | 11.9% | 9.2% | −0.0% | +1% / +17% |
1- and 3-year price returns: for ROKU from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 109.25 Total return -33% · Per year -33% | 192.28 Total return 18% · Per year 18% | 288.43 Total return 77% · Per year 77% |
| 3 years | 129.25 Total return -21% · Per year -7% | 253.65 Total return 56% · Per year 16% | 414.34 Total return 155% · Per year 37% |
| 5 years | 152.91 Total return -6% · Per year -1% | 334.61 Total return 106% · Per year 16% | 595.22 Total return 266% · Per year 30% |
- Exit P/E± 63.41
- Net margin± 44.39
- Annual revenue growth± 33.15
- Annual dilution± 3.73
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (02 Nov 2026), 8-K (02 Nov 2026 · results).
In brief
Roku, Inc. is the leading TV streaming platform in the United States, Canada and Mexico by hours streamed, with 145.6 billion streaming hours in fiscal 2025 1. In the second quarter of 2026 Platform revenue grew 25% year over year to 1,221 million USD 23, and trailing twelve-month Free Cash Flow reached 704.1 million USD 3.
SWOT
Strengths
- Roku holds a leading position in TV streaming in North America and a large base of connected households, which gives it scale for advertising and subscriptions 1.
- The platform holds first-party data on viewer behavior, useful for advertising and personalized recommendations 1.
- Recent growth in free cash flow and adjusted profitability shows that the business model can generate steady earnings 3.
Weaknesses
- Roku's device gross margins are volatile, and the Devices segment posted losses in some quarters 3.
- The company has a history of operating losses, and recent profitability is not yet proven over the long term 1.
- Reliance on third-party manufacturers and sole-source components could expose the company to supply disruptions 1.
Opportunities
- International expansion, the new Home Screen and deeper programmatic integrations could open new advertising revenue sources 13.
- Subscription services and sports streaming could raise recurring revenue and user retention 3.
- Growth in Roku-made TV share could strengthen the company's position in the higher-performance TV segment 3.
Threats
- Competitors with greater financial resources could subsidize devices or licenses and pressure Roku's pricing 1.
- If advertisers move budgets to traditional media or other digital platforms, advertising revenue could be affected 1.
- Tariffs, trade uncertainty and component supply constraints could raise costs and slow growth 2.
Risks
- Intense competitionhigh
The TV streaming market is highly competitive, and large rivals could aggressively promote their own products, which could reduce sales volume and margins.
- Dependence on advertisinghigh
If Roku fails to grow advertising revenue or maintain quality video inventory, platform growth could slow.
- Dependence on content partnersmedium
Loss or non-renewal of content partner agreements could reduce the platform's appeal to viewers and advertisers.
- Supply chain and costsmedium
Higher component costs and tariffs could affect the margins of the Devices segment and the ability to keep prices competitive.
- Proposed transaction with Foxmedium
The merger agreement with Fox, entered in June 2026, carries integration uncertainty and transaction costs that could affect results and plans.
Investment thesis
What would need to be true (bull case)
- Rapid growth in platform revenue and advertising margin could suggest the monetization model is maturing, especially if subscription and programmatic expansion continues.
- Rising free cash flow supports the company's ability to invest in products and the Home Screen without heavy reliance on external funding.
- A leading streaming position and a large household base could make Roku an important channel for advertisers and content providers.
What would break the thesis
- Device margins remain unstable, and effects from tariff refunds could mask the underlying weakness of the segment.
- Competition from giants with far greater resources could limit growth and could force lower prices.
- Integrating a large transaction and the uncertainty around it could distract management and generate unforeseen costs.
What to watch
- Advertising revenue trend during the political ad seasonQ3 2026
- Status of the Fox transaction and regulatory approvals2026
- Gross margin of the Devices segment after the tariff refund effectsQ3 2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (02 Nov 2026), 8-K (02 Nov 2026 · results).
The business
Roku builds its business on the Roku TV OS, used by its own devices and by licensed partner TVs, which allows low-cost hardware sold at competitive prices 1. The company also operates owned services such as The Roku Channel, Howdy and Frndly TV, and Platform revenue comes from digital advertising and streaming services distribution 1. From 2026 it reports three segments: Advertising, Subscriptions and Devices 2.
Roku's strategy follows three phases of growing scale, engagement and monetization, supported by the Roku Experience and its Home Screen, which reaches users before they choose what to watch 1. Internationally the company focuses on building scale first, then engagement and monetization 1.
Market context
According to the company, its video advertising outpaced both the U.S. OTT and digital ad markets in the second quarter of 2026 3, which suggests strong demand, although the political ad cycle and intense industry competition could test this lead.
Trends
- Audience shift to streamingtailwind
More viewers are moving from traditional TV to streaming, which lifts viewing time on Roku platforms, though large rivals could capture the same audience.
- Growth in platform subscriptionsmixed
Premium Subscriptions and owned services bring recurring revenue, and more sports moving to streaming could support this growth, but lower subscription margins could weigh on profitability.
- Programmatic and political advertisingtailwind
Integrations with DSPs and SSPs widen ad demand, and political campaigns in 2026 could strengthen revenue in the second half of the year.
- Cost and supply chain pressureheadwind
Tariffs, constraints on components such as memory chips and trade uncertainty could raise device costs and pressure the margin of the Devices segment.
Competitive position
Roku faces competition from large companies such as Amazon, Apple and Google, which offer streaming devices or TV operating systems, and from Walmart, which acquired Vizio 1. Service operators such as Comcast and Charter Communications also compete by offering streaming apps and devices 1.
In advertising, Roku competes with streaming platforms, social media and traditional media, and several rivals have greater financial resources 1. If ad-supported tiers of major services sell more inventory on Roku's platform, pressure on advertising revenue could increase 1.
- AmazonAMZN
Licenses its operating system for smart TVs and sells Amazon-branded smart TVs, a direct rival in devices and streaming.
- Alphabet (Google)GOOGL
Licenses its Android operating system for smart TVs and set-top boxes, competing with the Roku TV OS.
- WalmartWMT
Makes streaming products under the Onn brand and acquired Vizio, integrating its operating system into its products.
- ComcastCMCSA
Cable operator that offers streaming apps and devices within its service plans, leveraging its existing user base.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Versant's MS NOW brings streaming membership to Roku, Apple TV and Fire TVCNA (Channel NewsAsia) · 02 Nov 2026 · EN
- Roku developer repositories moved from GitHub to GitLabHacker News · 24 Oct 2026 · EN
- Acțiunile Fox Corp cresc în urma unor upgrade-uri de analiză și a aprobării achiziției Roku - https://www.goldring.ro/roSurge — Google News · 21 Oct 2026 · RO
- Roku’s OLED TVs are up to $400 off during Prime Day, starting at $700The Verge · 07 Oct 2026 · EN
- První zprávy - Domácí - Zatažení světa do velkého konfliktu je větší než kdykoli od roku 1945Surge — GDELT DOC · 01 Oct 2026 · RO
- Roku’s first OLED TVs are up to $400 off, starting at $699The Verge · 25 Sept 2026 · EN
- Radosław Sikorski ostrzega przed Rosją . Szykuje coś dużego w tym rokuSurge — GDELT DOC · 24 Sept 2026 · RO
- Fox (FOXA) Faces a Deeper DOJ Review of Roku (ROKU). Can the Deal Still Deliver?Yahoo Finance — News · 16 Sept 2026 · EN
- DOJ issues second request in Fox-Roku $22 billion merger reviewYahoo Finance — News · 09 Sept 2026 · EN
- US DOJ widens probe into Fox's Roku deal, Semafor reportsCNA (Channel NewsAsia) · 08 Sept 2026 · EN
- TiVo OS Added Generative AI Discovery. Can Xperi Take Share From Roku Without Owning the TV Screen?Yahoo Finance — News · 04 Sept 2026 · EN
- Don’t Change the Channel: Roku Stock Just Hit a 3-Year HighYahoo Finance — News · 03 Sept 2026 · EN
- Roku’s first OLED TVs undercut the midrange competitionThe Verge · 01 Sept 2026 · EN
- Roku (ROKU) Announces Acquisition by Fox Corp for $96 Cash and SharesYahoo Finance — News · 25 Aug 2026 · EN
- Here Are Monday’s Top Wall Street Analyst Research Calls: AstraZeneca, Celestica, Chipotle Mexican Grill, Domino’s Pizza, Fortune Brands, Golar LNG, Jersey Mike’s Subs, Roku, and MoreYahoo Finance — News · 24 Aug 2026 · EN
- Watching Roku’s AI channel is like eating from a troughThe Verge · 07 Aug 2026 · EN
- Roku raises streaming hardware prices by up to $50The Verge · 24 Jul 2026 · EN
- No more lightbulbs, much more sports: Five predictions for Roku’s futureThe Verge · 18 Jun 2026 · EN
- Pour one out for Roku CityThe Verge · 16 Jun 2026 · EN
- Fox enters new era with Roku dealAxios · 16 Jun 2026 · EN
SEC filings
- Quarterly report02 Nov 2026
- Current report02 Nov 2026Results of operations · Financial statements and exhibits
- Current report15 Oct 2026Shareholder vote
- Current report06 Oct 2026Other events
- Current report09 Sept 2026Other events
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report18 Jun 2026Other events · Financial statements and exhibits
- Current report17 Jun 2026Shareholder vote
- Current report15 Jun 2026Material agreement · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Roku, Inc. · 13 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Roku, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Roku, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.