Roku Q2 2025 Shareholder Letter

    Roku Q2 2025 Shareholder Letter

    F2 weeks ago 9

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    Fellow Shareholders, July 31, 2025
In Q2, Platform revenue grew 18% YoY, surpassing our outlook, due in part to strong performance in video 
advertising and the successful acquisition of Frndly. We have recently expanded our relationships with Amazon
and Wurl, and we will continue to deepen our integrations with all major DSPs (demand-side platforms) to drive 
ad demand. We are raising our full-year 2025 outlook for Platform revenue to $4.075 billion and Adjusted 
EBITDA to $375 million. With improving Adjusted EBITDA and strong Free Cash Flow, we are announcing a stock 
repurchase program authorizing the purchase of up to $400 million of our Class A common stock. This initiative, 
along with our net share settlement program, is intended to help offset dilution from employee equity-based
compensation and reflects our continued commitment to delivering long-term shareholder value by growing 
Free Cash Flow per share.
Q2 2025 Key Results
• Total net revenue was $1,111 million, up 15% year over year (YoY)
• Platform revenue was $975 million, up 18% YoY
• Gross profit was $498 million, up 17% YoY
• Streaming Hours were 35.4 billion, up 5.2 billion hours YoY
• The Roku Channel remained the #2 app on our platform in the U.S. by engagement
    1/13

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    Roku Q2 2025 Shareholder Letter
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Platform
Platform revenue was $975 million, up 18% YoY, and above our outlook. The outperformance was driven by 
video advertising and our recent acquisition of Frndly, which contributed approximately 1.8 points of growth. 
Platform gross margin came in at 51%, in line with our outlook. 
Advertising Activities
The YoY growth of video advertising on our platform grew faster than overall Platform revenue and also the U.S. 
OTT and digital ad markets1. This strong performance reflects the results of our ongoing work to expand and 
diversify ad demand. Over the past two years, we have deepened integrations with third-party partners and
DSPs to meet enterprise clients where they want to transact. We also launched Roku Ads Manager to better 
serve SMBs (small and medium-sized businesses).
In June, we announced an integration with Amazon DSP that will connect Amazon advertisers with users on the 
Roku platform across major streaming apps, including The Roku Channel. We also enhanced our programmatic 
capabilities through a deeper integration with Wurl’s DSP and an expanded partnership with Unity via Roku 
Exchange. These efforts build upon existing demand and measurement partnerships with The Trade Desk, 
Yahoo, iSpot, INCRMNTL, and others. With our innovative ad products and logged-in user base of more than 
half of all U.S. broadband households, we make it possible for advertisers to achieve incremental reach,measure
campaign efficiency, and ultimately drive performance. 
We are making ad buying on Roku easier for the biggest brands in the world and, with Roku Ads Manager, for 
SMBs. We see a significant opportunity to serve digital-first, performance advertisers, and capture incremental 
ad dollars beyond traditional TV in digital budgets. For example, DTC (direct-to-consumer) brand fatty15 turned 
to Roku to drive sales in a crowded space amidst social media clutter. By uploading existing creative assets to 
Roku Ads Manager and enabling shoppable overlays through Action Ads and our Shopify integration, fatty15 
achieved a conversion rate from cart adds of more than 30%.
DTC brand fatty15 used Roku Ads Manager and Shopify to drive a >30% conversion rate from cart adds.
1 2Q25 SMI (Standard Media Index) data; OTT: over-the-top
    2/13

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    Roku Q2 2025 Shareholder Letter
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We are always working to make advertising on the Roku platform easier – particularly by simplifying the process 
and reducing the cost of TV asset creation. Last quarter, we highlighted how Roku Ads Manager client Rollo (a 
shipping platform) used our integration with Spaceback to leverage their top-performing social posts into video
assets for TV streaming. Spaceback recently received industry recognition for this campaign, winning a 
Programmatic Impact Award from AdExchanger for their creative use of emerging technology. 
Streaming Services Distribution Activities
Growth in our streaming services distribution activities was driven primarily by an increase in Premium 
Subscription sign-ups, as well as the continued impact of last year’s price increases across our subscriptionbased services, and the close of our acquisition of Frndly. Recently, we made it possible for viewers to log into 
their Paramount+ and HBO Max Premium Subscriptions outside of The Roku Channel. We expect features like 
this to enhance the appeal of Premium Subscriptions with our viewers.
Roku-billed subscriptions continued to grow as we leveraged both the scale and the power of the Roku platform, 
especially via our Home Screen. Features that viewers use everyday, like our platform-wide search, AI-powered 
content row, and Live TV guide are helping to drive growth in Roku-billed subscription sign-ups. In addition, we 
create high-impact opportunities around events and tentpole content, like TV and movie premieres. For the 
season two premiere of “Andor,” we partnered with Disney to build a custom fan experience on our Home 
Screen, which helped drive both Disney+ viewers and sign-ups. For Streaming Day (our May 20 anniversary of 
the launch of our first streaming player), we promoted SVOD2services across the Roku Experience, generating 
sign-ups for more than 20 Premium Subscription and DTC partners. These campaigns are strong demonstrations 
of the value we deliver to both our content partners and viewers.
Our Streaming Day campaign drove sign-ups for more than 20 Premium Subscription and DTC partners.
The Roku Channel
The Roku Channel continued its strong performance. Once again, the app was #2 on our platform in the U.S. by 
engagement and the #3 app globally by reach. It also maintained its high position on Nielsen’s The GaugeTM
ranking for June, representing 5.4% of all TV streaming time in the U.S.
2 SVOD: subscription video on demand
    3/13

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    Roku Q2 2025 Shareholder Letter
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The Roku Channel’s growth is fueled by the seamless integration of content discovery touchpoints throughout
the Roku Experience. In addition to modern day hits, our tools also surface long-tail favorites. For instance, in
Q2, with features like Featured Free on our Home Screen, we propelled shows like “Married… With Children,” 
“Las Vegas,” and “Army Wives” to be top-performing series by views in April, May, and June, respectively. This 
illustrates the unique power of our platform. We don’t just deliver content; we guide audiences to new and old
favorites, amplifying reach and engagement for our partners and The Roku Channel. 
Highlighted within Featured Free, “Army Wives” was a top-performing title on The Roku Channel in June.
We highlight sports across the Roku platform, including through our Sports Experience, which makes it easy to 
find and stream live sports. Forthe second year, The Roku Channel is the exclusive home of MLB Sunday Leadoff. 
Average reach is up more than 40% across the first seven MLB Sunday Leadoff games, and we’ve secured seasonlong sponsorships with Corona, T-Mobile, and Geico.
Expanding our partnership with MLB, we launched our first Roku Original with MLB Studios: “Going, Going, 
Gone: The Magic of the Home Run.” This documentary premiered on the heels of this year’s Home Run Derby 
and MLB All Star Game, each an everlasting part of sports culture. Our Roku Originals continue to earn industry 
recognition, including our first Sports Emmy win for “NFL Draft: The Pick Is In,” a compelling behind-the-scenes 
documentary produced in collaboration with NFL Films and Skydance Sports.
Devices
Devices revenue was $136 million, down 6% YoY, and slightly above our outlook. Devices gross profit was breakeven, and gross margin was also better than our outlook, primarily due to the timing of inbound TV units that 
shifted from Q2 to the second half of 2025. We continue to grow our penetration, and our streaming devices 
now reach more U.S. households than the top 10 MVPDs and vMVPDs combined3.
We maintained our leadership as the #1 selling TV OS in the U.S., Canada, and Mexico. In the U.S., our share of 
TV units sold continues to exceed that of the #2 and #3 selling TV operating systems combined4. In July, we 
announced that we will bring our Roku-branded TVs (designed, made, and sold by Roku) to Canada, where they 
3 nScreenMedia. MVPD: multichannel video programming distributor (e.g. Comcast or Charter); vMVPD: virtual MVPD (e.g. YouTube TV 
or Hulu + Live TV).
4 Source: Circana, LLC, Retail Tracking Service, US, CA, and MX, Smart TV by Software Service, Unit Sales, January – June 2025
    4/13

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    Roku Q2 2025 Shareholder Letter
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will be available exclusively at Best Buy Canada. The new lineup will include QLED 4K models ranging from 50” 
to 75”, with smaller sizes available in 4K and HD, featuring a premium design and our easy-to-use interface. 
This spring, we launched our new device lineup, including our most compact and efficient players yet, the Roku®
Streaming Stick® and Roku Streaming Stick Plus. These new models are 35% smaller than other brands and
powered directly by the TV, eliminating the need for a separate power adapter for a wall outlet. Our innovations 
in portability and power-efficiency have significantly reduced BOM (bill of materials) costs while helping us 
maintain the performance and speed our users expect. The new devices also continue to receive strong product 
reviews. The Streaming Stick was named best streaming box in GQ’s 2025 Tech Awards, and the Streaming Stick 
Plus was named best streaming device overall by Tom’s Guide. And within our new lineup of Roku-branded TVs, 
Cord Cutter News says the 2025 Roku Pro Series TV “brings a host of upgrades that elevate it above its 
predecessors, delivering a compelling package of performance, sound, and connectivity that rivals even pricier 
competitors.”
Outlook 
For Q3, we estimate total net revenue of approximately $1.2 billion, representing 13% YoY growth. Within that, 
Platform revenue is expected to grow 16% YoY with a gross margin of approximately 51%. Devices revenue is 
projected to decline about 3% YoY with a gross margin in negative mid-teens. These trends are expected to 
result in total gross profit of approximately $520 million and Adjusted EBITDA of roughly $110 million for the 
quarter.
For the full year, we are raising our outlook for Platform revenue to $4.075 billion and Adjusted EBITDA to $375 
million, supported by continued momentum in our Platform business. For Platform revenue, this represents YoY 
growth of 16%. Based on current trends in advertising activities and streaming services distribution, we 
anticipate full-year Platform gross margin of approximately 52%. Devices revenue is expected to be slightly 
down, mostly due to tariffs. We expect Devices gross profit will be roughly in line with 2024 levels.
We remain confident in our strategy. Our investments and execution are delivering results by continuing to 
grow broadband household penetration, ad demand, and subscriptions. Our monetization initiatives position 
Roku to sustain double digit Platform revenue growth while increasing profitability.
Happy Streaming™!
Anthony Wood, Founder and CEO, and Dan Jedda, CFO and COO
    5/13

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    Roku Q2 2025 Shareholder Letter
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Conference Call Webcast – July 31, 2025 at 2 p.m. PT
The Company will host a webcast of its conference call to discuss the Q2 2025 results at 2 p.m. Pacific Time / 5 
p.m. Eastern Time on July 31, 2025. Participants may access the live webcast in listen-only mode on the Roku 
investor relations website at www.roku.com/investor. An archived webcast of the conference call will also be 
available at www.roku.com/investor after the call.
Stock Repurchase Program
Our board of directors has approved a stock repurchase program with authorization to purchase up to $400 
million of our Class A common stock through December 31, 2026. This stock repurchase program underscores 
our commitment to reduce dilution and preserve shareholder value while enhancing EPS (earnings per share) 
and Free Cash Flow per share over time. Repurchases under the program may be made from time to time in the 
open market or through other means, with the amount and timing of repurchases to be determined at our 
discretion, depending on a variety of factors, including general market conditions, the trading price of our Class 
A common stock, corporate and regulatory requirements, the availability of funds, other investment 
opportunities, and other considerations we deem relevant. Open market repurchases will be structured to occur 
in accordance with applicable federal securities laws, including within the pricing and volume requirements of 
Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act). We may also, from 
time to time, enter into trading plans adopted in accordance with Rule 10b5-1 of the Exchange Act to facilitate 
stock repurchases. We are not obligated to acquire any particular amount of Class A common stock, and the 
stock repurchase program may be modified, suspended, or terminated at any time.
We expect to fund repurchases with existing cash and cash equivalents and short-term investments. As of June 
30, 2025, we had cash and cash equivalents and short-term investments of $2.3 billion.
About Roku, Inc.
Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build 
and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Rokumade TVs, Roku TV™ models, Roku streaming players, and TV-related audio devices are available in various 
countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku 
Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home 
of free and premium entertainment with exclusive access to Roku Originals, and the #2 app on our platform in 
the U.S. by streaming hours. The Roku Channel is available in the United States, Canada, Mexico, and the United 
Kingdom. Roku is headquartered in San Jose, Calif., U.S.A.
Roku, Roku TV, Streaming Stick, the Roku logo, FRNDLY, “HAPPY STREAMING” and other trade names, 
trademarks or service marks of Roku appearing in this shareholder letter are the property of Roku or its affiliates.
Trade names, trademarks and service marks of other companies appearing in this shareholder letter are the 
property of their respective holders.
Investor Relations
Conrad Grodd
cgrodd@roku.com
Media
Kelli Raftery
kraftery@roku.com
    6/13

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    Roku Q2 2025 Shareholder Letter
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Use of Non-GAAP Measures 
In addition to financial information prepared in accordance with generally accepted accounting principles in the 
United States (GAAP), this shareholder letter includes certain non-GAAP financial measures. These non-GAAP 
measures include Adjusted EBITDA and Free Cash Flow (FCF). In order for our investors to be better able to 
compare our current results with those of previous periods, we have included a reconciliation of GAAP to nonGAAP financial measures in the tables at the end of this letter. The Adjusted EBITDA reconciliation excludestotal
other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, 
and income tax (benefit) expense from the net income (loss) of the period, and the FCF reconciliation excludes 
capital expenditures and effects of exchange rates from the cash flow from operations of the period, in each 
case where applicable. We believe these non-GAAP financial measures are useful as a supplement in evaluating 
our ongoing operational performance and enhancing an overall understanding of our past financial 
performance. However, these non-GAAP financial measures have limitations, and should not be considered in 
isolation or as a substitute for our GAAP financial information. 
Forward-Looking Statements 
This shareholder letter contains “forward-looking” statements within the meaning of the federal securities laws.
Statements contained herein that are not historical facts are considered forward-looking statements and can 
be identified by terms such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” "plan,” 
“seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Such forward-looking 
statements are based on our current beliefs, assumptions and information available to us and involve known 
and unknown risks, uncertainties and other factors that may cause our actual results to be materially different 
from any future results expressed or implied by the forward-looking statements. These statements include those 
related to the growth of our scale; our ability to leverage the Roku Experience to drive growth; the growth and 
performance of The Roku Channel; our initiatives to grow Platform revenue, Adjusted EBITDA, and Free Cash 
Flow; the impact of features like our content row in growing video ad reach and subscription sign-ups; our 
ability to expand our performance and measurement capabilities through strategic partnerships and innovative 
products; our advertising initiatives, including Ads Manager and our integrations with third party DSPs and other 
partners; the timing, funding sources for, and amount of purchases under our stock repurchase program and 
our expectations for the program; the performance and competitiveness of our new device lineup and features; 
our focus on our strategic priorities and initiatives; our expectations regarding macro environment impacts, 
including tariffs; our financial outlook for the third quarter of 2025 and full year 2025 and our qualitative color 
on our business in 2025 and beyond; the impact of our monetization initiatives, including our path to increasing 
profitability; and our overall business trajectory. Important risks and factors related to such statements are 
contained in the reports we have filed with the Securities and Exchange Commission, including our most recent 
Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Except as required by law, we assume no 
obligation to update these forward-looking statements as the result of new information, future events or 
otherwise.
    7/13

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    Roku Q2 2025 Shareholder Letter
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ROKU, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) 
(unaudited)
Three Months Ended Six Months Ended
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Net revenue:
Platform $ 975,471 $ 824,333 $ 1,856,288 $ 1,579,268
Devices 135,567 143,846 275,422 270,380
Total net revenue 1,111,038 968,179 2,131,710 1,849,648
Cost of revenue:
Platform (1) 477,795 384,454 894,301 745,020
Devices(1) 135,585 159,025 294,706 291,637
Total cost of revenue 613,380 543,479 1,189,007 1,036,657
Gross profit (loss):
Platform 497,676 439,879 961,987 834,248
Devices (18) (15,179) (19,284) (21,257)
Total gross profit 497,658 424,700 942,703 812,991
Operating expenses:
Research and development (1) 178,017 175,481 362,596 355,940
Sales and marketing (1) 243,256 221,656 466,949 423,780
General and administrative (1) 99,718 98,806 194,221 176,550
Total operating expenses 520,991 495,943 1,023,766 956,270
Loss from operations (23,333) (71,243) (81,063) (143,279)
Other income, net:
Interest expense (460) — (893) —
Other income, net 28,466 28,129 46,115 54,075
Total other income, net 28,006 28,129 45,222 54,075
Income (loss) before income taxes 4,673 (43,114) (35,841) (89,204)
Income tax benefit (5,830) (9,161) (18,913) (4,396)
Net income (loss) $ 10,503 $ (33,953) $ (16,928) $ (84,808)
Net income (loss) per share — basic and diluted $ 0.07 $ (0.24) $ (0.12) $ (0.59)
Weighted-average common shares outstanding —
basic 146,888 144,339 146,545 144,045
Weighted-average common shares outstanding —
diluted 149,675 144,339 146,545 144,045
    8/13

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    Roku Q2 2025 Shareholder Letter
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(1) Stock-based compensation was allocated as follows:
Cost of revenue, platform $ 341 $ 282 $ 725 $ 696
Cost of revenue, devices 38 139 108 1,038
Research and development 32,961 33,365 68,819 70,955
Sales and marketing 30,486 31,431 65,272 63,952
General and administrative 20,814 23,179 45,210 46,387
Total stock-based compensation $ 84,640 $ 88,396 $ 180,134 $ 183,028
    9/13

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    Roku Q2 2025 Shareholder Letter
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ROKU, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(in thousands, except par value data) 
(unaudited) 
As of
June 30,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents $ 2,253,276 $ 2,160,236
Accounts receivable, net of allowances of $52,054 and $72,657 as of June 30, 2025
and December 31, 2024, respectively 628,475 812,510
Inventories 112,695 158,271
Prepaid expenses and other current assets 163,826 103,146
Total current assets 3,158,272 3,234,163
Property and equipment, net 193,765 213,690
Operating lease right-of-use assets 285,516 304,505
Content assets, net 197,416 237,321
Intangible assets, net 64,496 27,501
Goodwill 309,406 161,519
Other non-current assets 73,084 125,234
Total Assets $ 4,281,955 $ 4,303,933
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 165,963 $ 273,985
Accrued liabilities 818,597 852,799
Deferred revenue, current portion 123,628 105,718
Total current liabilities 1,108,188 1,232,502
Deferred revenue, non-current portion 25,192 25,050
Operating lease liability, non-current portion 481,779 512,706
Other long-term liabilities 76,244 40,938
Total Liabilities 1,691,403 1,811,196
Stockholders’ Equity:
Common stock, $0.0001 par value 15 15
Additional paid-in capital 4,033,004 3,921,432
Accumulated other comprehensive income (loss) 1,434 (1,737)
Accumulated deficit (1,443,901) (1,426,973)
Total stockholders’ equity 2,590,552 2,492,737
Total Liabilities and Stockholders’ Equity $ 4,281,955 $ 4,303,933
    10/13

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    Roku Q2 2025 Shareholder Letter
11
ROKU, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(in thousands)
(unaudited)
Six Months Ended
June 30, 2025 June 30, 2024
Cash flows from operating activities:
Net loss $ (16,928) $ (84,808)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 32,073 32,280
Stock-based compensation expense 180,134 183,028
Amortization of right-of-use assets 23,836 23,767
Amortization and write-off of content assets 101,003 108,022
Foreign currency remeasurement (gains) losses (112) 2,385
Change in fair value of strategic investment in convertible promissory notes 3,100 (3,634)
Change in fair value of contingent consideration 491 —
Impairment of assets 2,870 11,506
Provision for doubtful accounts 1,414 4,344
Other items, net 358 (1,489)
Changes in operating assets and liabilities:
Accounts receivable 189,024 142,463
Inventories 45,576 (4,222)
Prepaid expenses and other current assets (21,115) (25,012)
Content assets and liabilities, net (91,361) (91,226)
Other non-current assets 5,864 (17,279)
Accounts payable (114,583) (108,606)
Accrued liabilities (48,955) (66,715)
Operating lease liabilities (38,523) (27,751)
Other long-term liabilities (6,797) 320
Deferred revenue 1,096 (7,284)
Net cash provided by operating activities 248,465 70,089
Cash flows from investing activities:
Purchases of property and equipment (3,053) (1,547)
Purchase of business, net of cash acquired (95,090) —
Purchase of strategic investments (7,000) —
Repayment of convertible promissory note 10,000 —
Net cash used in investing activities (95,143) (1,547)
Cash flows from financing activities:
Proceeds from equity issued under incentive plans 2,946 8,679
Taxes paid related to net share settlement of equity awards (71,508) (41,623)
Net cash used in financing activities (68,562) (32,944)
Net increase in cash, cash equivalents and restricted cash 84,760 35,598
Effect of exchange rate changes on cash, cash equivalents and restricted cash 7,877 (4,002)
Cash, cash equivalents and restricted cash—beginning of period 2,160,639 2,066,604
Cash, cash equivalents and restricted cash—end of period $ 2,253,276 $ 2,098,200
    11/13

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    Roku Q2 2025 Shareholder Letter
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Six Months Ended
June 30, 2025 June 30, 2024
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents $ 2,253,276 $ 2,058,465
Restricted cash, current — 39,735
Cash, cash equivalents and restricted cash—end of period $ 2,253,276 $ 2,098,200
Supplemental disclosures of cash flow information:
Cash paid for interest $ 347 $ 61
Cash paid for income taxes $ 10,123 $ 6,702
Supplemental disclosures of non-cash investing and financing activities:
Non-cash contingent consideration for business combination $ 65,815 $ —
Unpaid portion of property and equipment purchases $ 368 $ 69
    12/13

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    Roku Q2 2025 Shareholder Letter
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ROKU, INC.
NON-GAAP INFORMATION
(in thousands)
(unaudited)
Reconciliation of Net loss to Adjusted EBITDA: 
Three Months Ended Six Months Ended
June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024
Net income (loss) $ 10,503 $ (33,953) $ (16,928) $ (84,808)
Total other income, net (28,006) (28,129) (45,222) (54,075)
Stock-based compensation 84,640 88,396 180,134 183,028
Depreciation and amortization 16,881 15,807 32,073 32,280
Restructuring charges (1) — 10,682 3,064 12,478
Income tax benefit (5,830) (9,161) (18,913) (4,396)
Adjusted EBITDA $ 78,188 $ 43,642 $ 134,208 $ 84,507
(1) The restructuring charges for the three months ended June 30, 2025 were not significant, and the restructuring charges for the six 
months ended June 30, 2025 primarily include asset impairment charges of $2.9 million and facilities exit costs of $0.2 million. 
Restructuring charges for the three and six months ended June 30, 2024 primarily include asset impairment charges of $10.7 million and 
$11.5 million, respectively. 
Free Cash Flow (TTM): 
Q2 24 Q3 24 Q4 24 Q1 25 Q2 25
Net cash provided by operating activities $ 332,304 $ 155,080 $ 218,045 $ 310,094 $ 396,421
Less: Purchases of property and equipment (11,850) (6,123) (5,061) (6,320) (6,567)
Add/(Less): Effect of exchange rate changes on 
cash, cash equivalents and restricted cash (2,537) 8,392 (9,746) (5,328) 2,133
Free Cash Flow (TTM) $ 317,917 $ 157,349 $ 203,238 $ 298,446 $ 391,987
    13/13

    Roku Q2 2025 Shareholder Letter

    • 1. Fellow Shareholders, July 31, 2025 In Q2, Platform revenue grew 18% YoY, surpassing our outlook, due in part to strong performance in video advertising and the successful acquisition of Frndly. We have recently expanded our relationships with Amazon and Wurl, and we will continue to deepen our integrations with all major DSPs (demand-side platforms) to drive ad demand. We are raising our full-year 2025 outlook for Platform revenue to $4.075 billion and Adjusted EBITDA to $375 million. With improving Adjusted EBITDA and strong Free Cash Flow, we are announcing a stock repurchase program authorizing the purchase of up to $400 million of our Class A common stock. This initiative, along with our net share settlement program, is intended to help offset dilution from employee equity-based compensation and reflects our continued commitment to delivering long-term shareholder value by growing Free Cash Flow per share. Q2 2025 Key Results • Total net revenue was $1,111 million, up 15% year over year (YoY) • Platform revenue was $975 million, up 18% YoY • Gross profit was $498 million, up 17% YoY • Streaming Hours were 35.4 billion, up 5.2 billion hours YoY • The Roku Channel remained the #2 app on our platform in the U.S. by engagement
    • 2. Roku Q2 2025 Shareholder Letter 2 Platform Platform revenue was $975 million, up 18% YoY, and above our outlook. The outperformance was driven by video advertising and our recent acquisition of Frndly, which contributed approximately 1.8 points of growth. Platform gross margin came in at 51%, in line with our outlook. Advertising Activities The YoY growth of video advertising on our platform grew faster than overall Platform revenue and also the U.S. OTT and digital ad markets1. This strong performance reflects the results of our ongoing work to expand and diversify ad demand. Over the past two years, we have deepened integrations with third-party partners and DSPs to meet enterprise clients where they want to transact. We also launched Roku Ads Manager to better serve SMBs (small and medium-sized businesses). In June, we announced an integration with Amazon DSP that will connect Amazon advertisers with users on the Roku platform across major streaming apps, including The Roku Channel. We also enhanced our programmatic capabilities through a deeper integration with Wurl’s DSP and an expanded partnership with Unity via Roku Exchange. These efforts build upon existing demand and measurement partnerships with The Trade Desk, Yahoo, iSpot, INCRMNTL, and others. With our innovative ad products and logged-in user base of more than half of all U.S. broadband households, we make it possible for advertisers to achieve incremental reach,measure campaign efficiency, and ultimately drive performance. We are making ad buying on Roku easier for the biggest brands in the world and, with Roku Ads Manager, for SMBs. We see a significant opportunity to serve digital-first, performance advertisers, and capture incremental ad dollars beyond traditional TV in digital budgets. For example, DTC (direct-to-consumer) brand fatty15 turned to Roku to drive sales in a crowded space amidst social media clutter. By uploading existing creative assets to Roku Ads Manager and enabling shoppable overlays through Action Ads and our Shopify integration, fatty15 achieved a conversion rate from cart adds of more than 30%. DTC brand fatty15 used Roku Ads Manager and Shopify to drive a >30% conversion rate from cart adds. 1 2Q25 SMI (Standard Media Index) data; OTT: over-the-top
    • 3. Roku Q2 2025 Shareholder Letter 3 We are always working to make advertising on the Roku platform easier – particularly by simplifying the process and reducing the cost of TV asset creation. Last quarter, we highlighted how Roku Ads Manager client Rollo (a shipping platform) used our integration with Spaceback to leverage their top-performing social posts into video assets for TV streaming. Spaceback recently received industry recognition for this campaign, winning a Programmatic Impact Award from AdExchanger for their creative use of emerging technology. Streaming Services Distribution Activities Growth in our streaming services distribution activities was driven primarily by an increase in Premium Subscription sign-ups, as well as the continued impact of last year’s price increases across our subscriptionbased services, and the close of our acquisition of Frndly. Recently, we made it possible for viewers to log into their Paramount+ and HBO Max Premium Subscriptions outside of The Roku Channel. We expect features like this to enhance the appeal of Premium Subscriptions with our viewers. Roku-billed subscriptions continued to grow as we leveraged both the scale and the power of the Roku platform, especially via our Home Screen. Features that viewers use everyday, like our platform-wide search, AI-powered content row, and Live TV guide are helping to drive growth in Roku-billed subscription sign-ups. In addition, we create high-impact opportunities around events and tentpole content, like TV and movie premieres. For the season two premiere of “Andor,” we partnered with Disney to build a custom fan experience on our Home Screen, which helped drive both Disney+ viewers and sign-ups. For Streaming Day (our May 20 anniversary of the launch of our first streaming player), we promoted SVOD2services across the Roku Experience, generating sign-ups for more than 20 Premium Subscription and DTC partners. These campaigns are strong demonstrations of the value we deliver to both our content partners and viewers. Our Streaming Day campaign drove sign-ups for more than 20 Premium Subscription and DTC partners. The Roku Channel The Roku Channel continued its strong performance. Once again, the app was #2 on our platform in the U.S. by engagement and the #3 app globally by reach. It also maintained its high position on Nielsen’s The GaugeTM ranking for June, representing 5.4% of all TV streaming time in the U.S. 2 SVOD: subscription video on demand
    • 4. Roku Q2 2025 Shareholder Letter 4 The Roku Channel’s growth is fueled by the seamless integration of content discovery touchpoints throughout the Roku Experience. In addition to modern day hits, our tools also surface long-tail favorites. For instance, in Q2, with features like Featured Free on our Home Screen, we propelled shows like “Married… With Children,” “Las Vegas,” and “Army Wives” to be top-performing series by views in April, May, and June, respectively. This illustrates the unique power of our platform. We don’t just deliver content; we guide audiences to new and old favorites, amplifying reach and engagement for our partners and The Roku Channel. Highlighted within Featured Free, “Army Wives” was a top-performing title on The Roku Channel in June. We highlight sports across the Roku platform, including through our Sports Experience, which makes it easy to find and stream live sports. Forthe second year, The Roku Channel is the exclusive home of MLB Sunday Leadoff. Average reach is up more than 40% across the first seven MLB Sunday Leadoff games, and we’ve secured seasonlong sponsorships with Corona, T-Mobile, and Geico. Expanding our partnership with MLB, we launched our first Roku Original with MLB Studios: “Going, Going, Gone: The Magic of the Home Run.” This documentary premiered on the heels of this year’s Home Run Derby and MLB All Star Game, each an everlasting part of sports culture. Our Roku Originals continue to earn industry recognition, including our first Sports Emmy win for “NFL Draft: The Pick Is In,” a compelling behind-the-scenes documentary produced in collaboration with NFL Films and Skydance Sports. Devices Devices revenue was $136 million, down 6% YoY, and slightly above our outlook. Devices gross profit was breakeven, and gross margin was also better than our outlook, primarily due to the timing of inbound TV units that shifted from Q2 to the second half of 2025. We continue to grow our penetration, and our streaming devices now reach more U.S. households than the top 10 MVPDs and vMVPDs combined3. We maintained our leadership as the #1 selling TV OS in the U.S., Canada, and Mexico. In the U.S., our share of TV units sold continues to exceed that of the #2 and #3 selling TV operating systems combined4. In July, we announced that we will bring our Roku-branded TVs (designed, made, and sold by Roku) to Canada, where they 3 nScreenMedia. MVPD: multichannel video programming distributor (e.g. Comcast or Charter); vMVPD: virtual MVPD (e.g. YouTube TV or Hulu + Live TV). 4 Source: Circana, LLC, Retail Tracking Service, US, CA, and MX, Smart TV by Software Service, Unit Sales, January – June 2025
    • 5. Roku Q2 2025 Shareholder Letter 5 will be available exclusively at Best Buy Canada. The new lineup will include QLED 4K models ranging from 50” to 75”, with smaller sizes available in 4K and HD, featuring a premium design and our easy-to-use interface. This spring, we launched our new device lineup, including our most compact and efficient players yet, the Roku® Streaming Stick® and Roku Streaming Stick Plus. These new models are 35% smaller than other brands and powered directly by the TV, eliminating the need for a separate power adapter for a wall outlet. Our innovations in portability and power-efficiency have significantly reduced BOM (bill of materials) costs while helping us maintain the performance and speed our users expect. The new devices also continue to receive strong product reviews. The Streaming Stick was named best streaming box in GQ’s 2025 Tech Awards, and the Streaming Stick Plus was named best streaming device overall by Tom’s Guide. And within our new lineup of Roku-branded TVs, Cord Cutter News says the 2025 Roku Pro Series TV “brings a host of upgrades that elevate it above its predecessors, delivering a compelling package of performance, sound, and connectivity that rivals even pricier competitors.” Outlook For Q3, we estimate total net revenue of approximately $1.2 billion, representing 13% YoY growth. Within that, Platform revenue is expected to grow 16% YoY with a gross margin of approximately 51%. Devices revenue is projected to decline about 3% YoY with a gross margin in negative mid-teens. These trends are expected to result in total gross profit of approximately $520 million and Adjusted EBITDA of roughly $110 million for the quarter. For the full year, we are raising our outlook for Platform revenue to $4.075 billion and Adjusted EBITDA to $375 million, supported by continued momentum in our Platform business. For Platform revenue, this represents YoY growth of 16%. Based on current trends in advertising activities and streaming services distribution, we anticipate full-year Platform gross margin of approximately 52%. Devices revenue is expected to be slightly down, mostly due to tariffs. We expect Devices gross profit will be roughly in line with 2024 levels. We remain confident in our strategy. Our investments and execution are delivering results by continuing to grow broadband household penetration, ad demand, and subscriptions. Our monetization initiatives position Roku to sustain double digit Platform revenue growth while increasing profitability. Happy Streaming™! Anthony Wood, Founder and CEO, and Dan Jedda, CFO and COO
    • 6. Roku Q2 2025 Shareholder Letter 6 Conference Call Webcast – July 31, 2025 at 2 p.m. PT The Company will host a webcast of its conference call to discuss the Q2 2025 results at 2 p.m. Pacific Time / 5 p.m. Eastern Time on July 31, 2025. Participants may access the live webcast in listen-only mode on the Roku investor relations website at www.roku.com/investor. An archived webcast of the conference call will also be available at www.roku.com/investor after the call. Stock Repurchase Program Our board of directors has approved a stock repurchase program with authorization to purchase up to $400 million of our Class A common stock through December 31, 2026. This stock repurchase program underscores our commitment to reduce dilution and preserve shareholder value while enhancing EPS (earnings per share) and Free Cash Flow per share over time. Repurchases under the program may be made from time to time in the open market or through other means, with the amount and timing of repurchases to be determined at our discretion, depending on a variety of factors, including general market conditions, the trading price of our Class A common stock, corporate and regulatory requirements, the availability of funds, other investment opportunities, and other considerations we deem relevant. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the Exchange Act). We may also, from time to time, enter into trading plans adopted in accordance with Rule 10b5-1 of the Exchange Act to facilitate stock repurchases. We are not obligated to acquire any particular amount of Class A common stock, and the stock repurchase program may be modified, suspended, or terminated at any time. We expect to fund repurchases with existing cash and cash equivalents and short-term investments. As of June 30, 2025, we had cash and cash equivalents and short-term investments of $2.3 billion. About Roku, Inc. Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Rokumade TVs, Roku TV™ models, Roku streaming players, and TV-related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals, and the #2 app on our platform in the U.S. by streaming hours. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A. Roku, Roku TV, Streaming Stick, the Roku logo, FRNDLY, “HAPPY STREAMING” and other trade names, trademarks or service marks of Roku appearing in this shareholder letter are the property of Roku or its affiliates. Trade names, trademarks and service marks of other companies appearing in this shareholder letter are the property of their respective holders. Investor Relations Conrad Grodd cgrodd@roku.com Media Kelli Raftery kraftery@roku.com
    • 7. Roku Q2 2025 Shareholder Letter 7 Use of Non-GAAP Measures In addition to financial information prepared in accordance with generally accepted accounting principles in the United States (GAAP), this shareholder letter includes certain non-GAAP financial measures. These non-GAAP measures include Adjusted EBITDA and Free Cash Flow (FCF). In order for our investors to be better able to compare our current results with those of previous periods, we have included a reconciliation of GAAP to nonGAAP financial measures in the tables at the end of this letter. The Adjusted EBITDA reconciliation excludestotal other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, and income tax (benefit) expense from the net income (loss) of the period, and the FCF reconciliation excludes capital expenditures and effects of exchange rates from the cash flow from operations of the period, in each case where applicable. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, these non-GAAP financial measures have limitations, and should not be considered in isolation or as a substitute for our GAAP financial information. Forward-Looking Statements This shareholder letter contains “forward-looking” statements within the meaning of the federal securities laws. Statements contained herein that are not historical facts are considered forward-looking statements and can be identified by terms such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “may,” "plan,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Such forward-looking statements are based on our current beliefs, assumptions and information available to us and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements. These statements include those related to the growth of our scale; our ability to leverage the Roku Experience to drive growth; the growth and performance of The Roku Channel; our initiatives to grow Platform revenue, Adjusted EBITDA, and Free Cash Flow; the impact of features like our content row in growing video ad reach and subscription sign-ups; our ability to expand our performance and measurement capabilities through strategic partnerships and innovative products; our advertising initiatives, including Ads Manager and our integrations with third party DSPs and other partners; the timing, funding sources for, and amount of purchases under our stock repurchase program and our expectations for the program; the performance and competitiveness of our new device lineup and features; our focus on our strategic priorities and initiatives; our expectations regarding macro environment impacts, including tariffs; our financial outlook for the third quarter of 2025 and full year 2025 and our qualitative color on our business in 2025 and beyond; the impact of our monetization initiatives, including our path to increasing profitability; and our overall business trajectory. Important risks and factors related to such statements are contained in the reports we have filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Except as required by law, we assume no obligation to update these forward-looking statements as the result of new information, future events or otherwise.
    • 8. Roku Q2 2025 Shareholder Letter 8 ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net revenue: Platform $ 975,471 $ 824,333 $ 1,856,288 $ 1,579,268 Devices 135,567 143,846 275,422 270,380 Total net revenue 1,111,038 968,179 2,131,710 1,849,648 Cost of revenue: Platform (1) 477,795 384,454 894,301 745,020 Devices(1) 135,585 159,025 294,706 291,637 Total cost of revenue 613,380 543,479 1,189,007 1,036,657 Gross profit (loss): Platform 497,676 439,879 961,987 834,248 Devices (18) (15,179) (19,284) (21,257) Total gross profit 497,658 424,700 942,703 812,991 Operating expenses: Research and development (1) 178,017 175,481 362,596 355,940 Sales and marketing (1) 243,256 221,656 466,949 423,780 General and administrative (1) 99,718 98,806 194,221 176,550 Total operating expenses 520,991 495,943 1,023,766 956,270 Loss from operations (23,333) (71,243) (81,063) (143,279) Other income, net: Interest expense (460) — (893) — Other income, net 28,466 28,129 46,115 54,075 Total other income, net 28,006 28,129 45,222 54,075 Income (loss) before income taxes 4,673 (43,114) (35,841) (89,204) Income tax benefit (5,830) (9,161) (18,913) (4,396) Net income (loss) $ 10,503 $ (33,953) $ (16,928) $ (84,808) Net income (loss) per share — basic and diluted $ 0.07 $ (0.24) $ (0.12) $ (0.59) Weighted-average common shares outstanding — basic 146,888 144,339 146,545 144,045 Weighted-average common shares outstanding — diluted 149,675 144,339 146,545 144,045
    • 9. Roku Q2 2025 Shareholder Letter 9 (1) Stock-based compensation was allocated as follows: Cost of revenue, platform $ 341 $ 282 $ 725 $ 696 Cost of revenue, devices 38 139 108 1,038 Research and development 32,961 33,365 68,819 70,955 Sales and marketing 30,486 31,431 65,272 63,952 General and administrative 20,814 23,179 45,210 46,387 Total stock-based compensation $ 84,640 $ 88,396 $ 180,134 $ 183,028
    • 10. Roku Q2 2025 Shareholder Letter 10 ROKU, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) As of June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 2,253,276 $ 2,160,236 Accounts receivable, net of allowances of $52,054 and $72,657 as of June 30, 2025 and December 31, 2024, respectively 628,475 812,510 Inventories 112,695 158,271 Prepaid expenses and other current assets 163,826 103,146 Total current assets 3,158,272 3,234,163 Property and equipment, net 193,765 213,690 Operating lease right-of-use assets 285,516 304,505 Content assets, net 197,416 237,321 Intangible assets, net 64,496 27,501 Goodwill 309,406 161,519 Other non-current assets 73,084 125,234 Total Assets $ 4,281,955 $ 4,303,933 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 165,963 $ 273,985 Accrued liabilities 818,597 852,799 Deferred revenue, current portion 123,628 105,718 Total current liabilities 1,108,188 1,232,502 Deferred revenue, non-current portion 25,192 25,050 Operating lease liability, non-current portion 481,779 512,706 Other long-term liabilities 76,244 40,938 Total Liabilities 1,691,403 1,811,196 Stockholders’ Equity: Common stock, $0.0001 par value 15 15 Additional paid-in capital 4,033,004 3,921,432 Accumulated other comprehensive income (loss) 1,434 (1,737) Accumulated deficit (1,443,901) (1,426,973) Total stockholders’ equity 2,590,552 2,492,737 Total Liabilities and Stockholders’ Equity $ 4,281,955 $ 4,303,933
    • 11. Roku Q2 2025 Shareholder Letter 11 ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net loss $ (16,928) $ (84,808) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 32,073 32,280 Stock-based compensation expense 180,134 183,028 Amortization of right-of-use assets 23,836 23,767 Amortization and write-off of content assets 101,003 108,022 Foreign currency remeasurement (gains) losses (112) 2,385 Change in fair value of strategic investment in convertible promissory notes 3,100 (3,634) Change in fair value of contingent consideration 491 — Impairment of assets 2,870 11,506 Provision for doubtful accounts 1,414 4,344 Other items, net 358 (1,489) Changes in operating assets and liabilities: Accounts receivable 189,024 142,463 Inventories 45,576 (4,222) Prepaid expenses and other current assets (21,115) (25,012) Content assets and liabilities, net (91,361) (91,226) Other non-current assets 5,864 (17,279) Accounts payable (114,583) (108,606) Accrued liabilities (48,955) (66,715) Operating lease liabilities (38,523) (27,751) Other long-term liabilities (6,797) 320 Deferred revenue 1,096 (7,284) Net cash provided by operating activities 248,465 70,089 Cash flows from investing activities: Purchases of property and equipment (3,053) (1,547) Purchase of business, net of cash acquired (95,090) — Purchase of strategic investments (7,000) — Repayment of convertible promissory note 10,000 — Net cash used in investing activities (95,143) (1,547) Cash flows from financing activities: Proceeds from equity issued under incentive plans 2,946 8,679 Taxes paid related to net share settlement of equity awards (71,508) (41,623) Net cash used in financing activities (68,562) (32,944) Net increase in cash, cash equivalents and restricted cash 84,760 35,598 Effect of exchange rate changes on cash, cash equivalents and restricted cash 7,877 (4,002) Cash, cash equivalents and restricted cash—beginning of period 2,160,639 2,066,604 Cash, cash equivalents and restricted cash—end of period $ 2,253,276 $ 2,098,200
    • 12. Roku Q2 2025 Shareholder Letter 12 Six Months Ended June 30, 2025 June 30, 2024 Cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents $ 2,253,276 $ 2,058,465 Restricted cash, current — 39,735 Cash, cash equivalents and restricted cash—end of period $ 2,253,276 $ 2,098,200 Supplemental disclosures of cash flow information: Cash paid for interest $ 347 $ 61 Cash paid for income taxes $ 10,123 $ 6,702 Supplemental disclosures of non-cash investing and financing activities: Non-cash contingent consideration for business combination $ 65,815 $ — Unpaid portion of property and equipment purchases $ 368 $ 69
    • 13. Roku Q2 2025 Shareholder Letter 13 ROKU, INC. NON-GAAP INFORMATION (in thousands) (unaudited) Reconciliation of Net loss to Adjusted EBITDA: Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income (loss) $ 10,503 $ (33,953) $ (16,928) $ (84,808) Total other income, net (28,006) (28,129) (45,222) (54,075) Stock-based compensation 84,640 88,396 180,134 183,028 Depreciation and amortization 16,881 15,807 32,073 32,280 Restructuring charges (1) — 10,682 3,064 12,478 Income tax benefit (5,830) (9,161) (18,913) (4,396) Adjusted EBITDA $ 78,188 $ 43,642 $ 134,208 $ 84,507 (1) The restructuring charges for the three months ended June 30, 2025 were not significant, and the restructuring charges for the six months ended June 30, 2025 primarily include asset impairment charges of $2.9 million and facilities exit costs of $0.2 million. Restructuring charges for the three and six months ended June 30, 2024 primarily include asset impairment charges of $10.7 million and $11.5 million, respectively. Free Cash Flow (TTM): Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Net cash provided by operating activities $ 332,304 $ 155,080 $ 218,045 $ 310,094 $ 396,421 Less: Purchases of property and equipment (11,850) (6,123) (5,061) (6,320) (6,567) Add/(Less): Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,537) 8,392 (9,746) (5,328) 2,133 Free Cash Flow (TTM) $ 317,917 $ 157,349 $ 203,238 $ 298,446 $ 391,987


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