What were the key takeaways from Roku's earnings call?

What were the key takeaways from Roku’s earnings call?

What is the market's earnings forecast for Roku next quarter?

Did Roku beat or miss consensus estimates last quarter?

What guidance did Roku's management provide for the next earnings period?

What is the revenue and EPS growth rate for Roku year over year?

What factors drove the changes in Roku's revenue and profit?

What is Roku's gross profit margin?

- **17% Platform Revenue Growth**: Driven by ad demand, subscriptions, and home screen improvements.
- **2026 Home Screen Update**: Expected to enhance engagement and monetization.
- **Amazon DSP Integration**: Early but promising, with Ads Manager attracting new advertisers.
- **ARPU Growth**: U.S. ARPU set to outpace platform revenue growth.
- **Free Cash Flow**: $440M (12-month) supporting $500M share buybacks and strategic investments.

**【CEO Summary】**
- Platform revenue grew 17% YoY, driven by home screen improvements, ad demand, and subscription growth.
- Home screen update in 2026 aims to enhance engagement and monetization, with testing showing positive results.
- Ad partnerships with Amazon DSP and AppsFlyer expand reach, with Ads Manager attracting 90% new advertisers.
- Subscription growth includes Howdy ($3/month SVOD) and premium tiers, with Roku Channel as #2 in U.S. engagement.
- Sports strategy focuses on centralized sports zone to simplify access across apps.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $420M; Non-GAAP EPS: $1.08 (vs. $0.95 consensus).
- Adjusted EBITDA: $145M (highest ever), with full-year EBITDA margin up 200bps to 8.4%.
- Free cash flow: $440M (12-month trailing), with $500M share buybacks in Q3.
- Capital allocation priorities: offsetting 100% dilution over time, investing in platform growth.

**【Q&A Highlights】**
- **Ad Partnerships**: Amazon DSP integration early but promising; Ads Manager sees 90% new advertisers.
- **ARPU Growth**: U.S. ARPU expected to grow faster than platform revenue, driven by monetization initiatives.
- **M&E Vertical**: Theatrical ad spend up, diversifying demand beyond traditional M&E reliance.
- **Streaming Hours**: Deceleration due to scale, but monetizable hours (TRC) growing strongly.
- **2026 Outlook**: Double-digit platform growth, with home screen, Ads Manager, and subscriptions as key drivers.

Roku, Inc. (ROKU) Q3 2025 Earnings Call Transcript

Platform

Player

ROKU

ROKU fundamentals

You can ask Aime