Roku's Transformation Sets Stage for Future Growth

Roku is expected to have a strong 12-18 months ahead due to its growth in TV streaming platform services beyond its initial focus on Roku streaming sticks. The company has diversified its business and is well-positioned for future success.

Roku Inc. (NASDAQ: ROKU) is poised for robust performance in the next 12-18 months, driven by its expanding TV streaming platform services and diversified business model. The company's growth in TV streaming platform services extends beyond its initial focus on Roku streaming sticks, positioning it strongly for future success.

In July 2025, streaming on Roku-powered devices accounted for 21.4% of all U.S. TV viewing time, surpassing broadcast television's 18.4% share for the third consecutive month, according to Nielsen data [1]. This market dominance has contributed to Roku's impressive 17.32% revenue growth over the last twelve months, as per InvestingPro data. The company's strong market position is reflected in its stock performance, with a 28.95% year-to-date return and robust financial health indicators, including a healthy current ratio of 2.85.

Roku's share of TV viewing has grown 14% year-over-year throughout 2025, highlighting the ongoing shift from traditional broadcast to streaming services. The company's strong market position is reflected in its stock performance, with a 28.95% year-to-date return and robust financial health indicators, including a healthy current ratio of 2.85. Roku remains the dominant streaming platform in the United States, powering devices in over half of all internet-enabled households in the country. It is also the top-selling TV operating system in the U.S., Canada, and Mexico, with U.S. TV unit sales exceeding the next two TV operating systems combined, according to Circana retail tracking data from January to June 2025 [1].

In other recent news, Roku Inc. reported impressive financial results for Q2 2025, with earnings per share reaching $0.17, surpassing the forecast of -$0.15. Additionally, the company's revenue came in at $1.21 billion, exceeding expectations of $1.07 billion. This strong performance has driven market optimism. In another development, Roku launched Howdy, a new ad-free subscription video-on-demand service priced at $2.99 per month, offering thousands of titles and nearly 10,000 hours of entertainment. The service includes content from partners like Lionsgate, Warner Bros. Discovery, and FilmRise, along with select Roku Originals. Analyst firm Citizens JMP reiterated its Market Outperform rating for Roku, maintaining a $110 price target and highlighting Roku’s significant market reach. Meanwhile, Jefferies maintained its Hold rating with a $100 price target, noting Roku’s growing momentum in artificial intelligence initiatives [1].

At the Citi’s 2025 Global Technology, Media and Telecommunications Conference, Roku showcased its strategic vision amid a rapidly evolving streaming landscape. The company highlighted its robust growth in user engagement and monetization strategies, while also addressing challenges in international expansion and advertising competition [2]. Roku's strategy involves getting scale, getting engagement, and then monetizing. The company has achieved significant scale, reaching over half of all broadband households in the US. It is focused on monetization through advertising and content distribution. Roku's acquisition of Friendly aims to enhance its subscription offerings. The company targets double-digit EBITDA margins and announced a $400 million share buyback. Roku is expanding its presence in Mexico, Canada, and Brazil. Financial Results Roku ended 2023 with an adjusted EBITDA of $4 million, with guidance for $375 million by 2025. The company is targeting double-digit EBITDA margins in the short term and operating profit margins in the long term. A $400 million share buyback authorization was announced, highlighting Roku’s commitment to shareholder value. Operational Updates Roku claims a fifth of all TV viewership is on its platform, underscoring its dominance in the streaming market. The company has a significant presence in the US, Mexico, and Canada, with plans to surpass 100 million streaming households by 2026. Roku maintains over $2.2 billion in cash, supporting strategic acquisitions and operational growth [2].

In conclusion, Roku's diversified business model, strong market position, and robust financial performance position it well for continued growth over the next 12-18 months.

References:
[1] https://www.investing.com/news/company-news/roku-streaming-surpasses-broadcast-tv-for-third-straight-month-93CH-4221792
[2] https://www.investing.com/news/transcripts/roku-at-citis-conference-streaming-success-and-strategic-moves-93CH-4222287