Roku (ROKU.US) surpasses Q4 expectations, 2026 guidance is optimistic and likely to turn profitable.

Roku (ROKU.US) reported Q4 results and provided guidance in line with Wall Street expectations, stating its goal is to achieve profitability in fiscal 2026, leading to a significant surge in its stock price. The data revealed that revenue grew by 22% to $1.2 billion in the three months ended December 31, surpassing market consensus estimates by $5 million, and the net loss narrowed to $39.1 million from $104.2 million a year ago. On a per share basis, the company reported a loss of $0.24, topping analyst consensus estimates of a loss of $0.40.

Following the report, the company's shares rose nearly 16% after-hours on Thursday, but later retreated, and as of writing, the stock is up 11.11% after-hours.

The company expects revenue to reach $4.61 billion in 2025, topping Bloomberg consensus estimates of $4.6 billion, and adjusted EBITDA of $350 million, topping estimates of $290.4 million.

The company stated in a statement, "Looking forward, we see a clear path to growth in streaming hours, platform revenue, adjusted EBITDA and free cash flow, in addition to our expectation of positive operating profit for the full year 2026."

The company produces streaming devices and has a free ad-supported channel. The company reported that streaming hours were 34.1 billion hours in Q4, up 18% from a year ago. In the past 12 months, ARPU grew 4% to $41.49.