At a glance
Roku Inc is worth $23.16B, about 263 times its fiscal 2025 earnings. Revenue grew 15.2% to $4.74B in fiscal 2025, with 1.9% kept as profit; over 5 years it has grown 21.6% a year. It pays no dividend; it spent $150.0M buying back its shares over FY2021–FY2025. The stock returned +56.9% over the past year with dividends reinvested and −13.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 49.6% in the 2020 crash (S&P 500: 33.7%) and 77.8% in the 2022 bear market (S&P 500: 24.5%).
The business in plain English
Roku makes the software behind many TVs and streaming sticks. Its Roku TV OS (operating system) runs Roku's own devices, and TV makers license it to build Roku TV models. Roku calls itself the leading TV streaming platform in the United States, Canada and Mexico by hours streamed. Viewers in more than 90 million households streamed 145.6 billion hours on Roku in 2025, up from 127.1 billion in 2024.
Roku reports two segments. Devices sells streaming players, Roku-made TVs, projectors, audio products and smart home gear through online and national retailers. It prices them competitively to widen Roku's audience. Platform earns money from that audience. It sells digital ads, including ads on the Home Screen that viewers see before choosing a show. It also takes a share of subscriptions and rentals bought through Roku, sells subscriptions to services such as HBO Max and Paramount+, and charges apps for branded buttons on its remotes.
Roku also runs its own streaming services. The Roku Channel offers more than 80,000 free movies and shows and over 500 free live channels, paid for by ads. In 2025 Roku acquired Frndly TV, a low-cost live TV subscription, and launched Howdy, an ad-free service at $2.99 a month. Revenue for 2025 was $4.74 billion, up 15.2%.
Price history
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ROKU +56.9% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.50B, up 24.1% from a year earlier, and net income was $183.3M (+638.9%).
- For fiscal 2025, revenue was $4.74B (+15.2% year over year; +21.6% a year from FY2020 to FY2025) with a 1.9% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +21.6% good |
|---|---|
| Operating margin | -0.1% weak |
| Free cash flow margin | 10.1% good |
| Return on equity (FY2025) | 3.3% weak |
| Return on assets (FY2025) | 2% weak |
| Cash and investments | $2.72B (no borrowings found in the filings) good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.78B | $-17.5M | $65.8M |
| FY2021 | $2.76B | $242.4M | $188.0M |
| FY2022 | $3.13B | $-498.0M | $-149.9M |
| FY2023 | $3.48B | $-709.6M | $173.2M |
| FY2024 | $4.11B | $-129.4M | $213.0M |
| FY2025 | $4.74B | $88.4M | $478.4M |
Valuation snapshot
| Market value | $23.16B |
|---|---|
| P/E ratio | 263.3 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ROKU price data to Oct 28, 2026 | +43.2% | +56.9% | +40.2% | -13.5% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +43.2% |
| 2025 | +45.9% |
| 2024 | -18.9% |
| 2023 | +125.2% |
| 2022 | -82.2% |
| 2021 | -31.3% |
| 2020 | +148.0% |
| 2019 | +337.0% |
| 2018 | -40.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 29.3% over that stretch · deepest drop along the way 49.6%, back to its old high 1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 77.2% over that stretch · deepest drop along the way 77.8%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 35 sales ($17.9M), 35 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 6, 2026 | Gilbert Fuchsberg President, Subscriptions | sell (plan) | $1.6M |
| Oct 5, 2026 | Charles Collier President, Roku Media | sell (plan) | $1.5M |
| Oct 5, 2026 | Charles Collier President, Roku Media | sell (plan) | $1.5M |
| Sep 4, 2026 | Charles Collier President, Roku Media | sell (plan) | $1.4M |
| Sep 4, 2026 | Charles Collier President, Roku Media | sell (plan) | $1.4M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.7% | Jun 30, 2026 |
| Vanguard Capital Management | 5.26% | Mar 31, 2026 |
| ARK Investment Management LLC | 4.5% | Dec 31, 2025 |
| Sumitomo Mitsui Trust Group, Inc. | 4.3% | Dec 31, 2024 |
| FMR LLC | 4% | Jun 30, 2026 |
ETFs with the most weight in ROKU
| ARKK ARK Innovation ETF | 7.88% |
| ARKW ARK Next Generation Internet ETF | 5.91% |
| IYZ iShares U.S. Telecommunications ETF | 3.16% |
| ARKF ARK Fintech Innovation ETF | 2.92% |
| SIMS SPDR S&P Kensho Intelligent Structures ETF | 1.78% |
| FNY First Trust Mid Cap Growth AlphaDEX Fund | 0.55% |
| TMFX Motley Fool Next Index ETF | 0.52% |
| EQAL Invesco Russell 1000 Equal Weight ETF | 0.49% |
What could go wrong
- A few content partners drive viewing. Roku relies on a small number of content partners for nearly half of the hours viewers stream on its platform. If those agreements lapse or end early, popular apps or features could be removed.
- Growth hinges on winning ad budgets. Many advertisers still put large budgets into traditional TV or other digital platforms. Roku must keep enough quality ad space and fill it, including through automated (programmatic) ad buying, or growth could slow.
- Tough competition in TV streaming. Roku's annual report calls TV streaming highly competitive and fast-changing. Rivals offer their own content and advertising options that may appeal more to advertisers, and Roku must keep its platform distinct to hold users.
- Hardware depends on outside factories and parts. Roku and its Roku TV partners rely on contract manufacturers, and some key components have only one supplier. Shortages, poor inventory forecasts or changes in trade policy could raise costs or delay products.
- Thin profits after years of losses. Roku lost money in 2022, 2023 and 2024. In 2025 it earned $88.4 million on $4.74 billion of revenue but still posted a $5.6 million operating loss, and it warns losses may return.
- Dual-class shares limit outside voting power. Roku's dual-class structure concentrates voting control with holders from before its stock market listing, including executives and directors. Owners of the publicly traded Class A shares have limited say over corporate decisions.
Recent events
- Quarterly results released
- Shareholder vote results
- Other company announcement
- Other company announcement
- Quarterly results released
- Other company announcement
- Shareholder vote results
- Major agreement signed; Other company announcement
- Quarterly results released
- Investor presentation or announcement
For income and retirement investors
Roku pays no dividend and paid none from 2021 through 2025, so it provides no income stream. Any return comes from the share price, meaning a holder who needs cash would have to raise it by selling shares. Roku spent about $150 million repurchasing its stock in 2025, after none in 2023 or 2024. Buybacks can raise each remaining share's slice of profits, but they put no cash in a holder's pocket.
The price has swung sharply in downturns. In the 2020 COVID crash, the shares fell 49.6% from February 19 to March 16, 2020, then regained that peak by April 16. In the 2022 bear market, a long market slide, they fell 77.8% from January 3 to October 11, 2022, and had not returned to that high as of October 28, 2026. Roku's price history starts after the 2008 financial crisis. Single stocks carry more risk than diversified funds, which spread money across many companies.
Questions investors ask
Does Roku pay a dividend?
No. Roku paid no dividends from 2021 through 2025, so the stock offers no regular income. The company has returned some cash through share buybacks (purchases of its own stock) instead, spending about $150 million in 2025 after none in 2023 or 2024. Its annual report cautions that the buyback program may not be fully completed and may not preserve or enhance long-term shareholder value.
How does Roku make money?
Roku makes money in two ways: through its streaming platform and by selling hardware. Platform revenue comes from digital advertising, including ads on its Home Screen. It also comes from streaming services: a share of subscriptions and rentals bought through Roku, add-on subscriptions such as HBO Max and Paramount+, and branded app buttons on its remotes. The Devices segment sells streaming players, Roku-made TVs, projectors, audio and smart home products. Total revenue was $4.74 billion in 2025, up 15.2%.
Is Roku profitable?
Yes, but only just. Roku earned net income of $88.4 million on $4.74 billion of revenue in 2025, after losing money in 2022, 2023 and 2024. It still had a small operating loss of $5.6 million that year. Free cash flow, the cash left after running the business and paying for equipment, was $478 million. In the quarter ended June 30, 2026, net income rose to $164.2 million, and revenue grew 21.9% from a year earlier to $1.35 billion.
What is Roku's P/E ratio?
Roku's price-to-earnings (P/E) ratio was about 263 as of October 28, 2026, based on 2025 earnings of $0.59 per share. The P/E is the share price divided by a year's profit per share. A ratio that high reflects how thin Roku's 2025 profit was, $88.4 million on $4.74 billion of revenue, so small changes in earnings can move it a lot. Roku's market value was about $23.1 billion on that date.
How volatile is Roku stock?
Very volatile. The share price fell 82.2% in 2022, rose 125.2% in 2023, dropped 18.9% in 2024 and rose 45.9% in 2025. Its deepest fall from a peak, across about nine years of trading to October 28, 2026, was 91.9%. Over the five years to that date, the price fell 52% in total, even though it gained 56.9% over the latest year.