AI Earnings Predictions for Roku Inc. (ROKU)

EX-99.1

2 a04fy2026q3exhibit991.htm

EX-99.1

Document

Exhibit 99.1

Fellow Shareholders, November 2, 2026

Building on an outstanding first half of the year, we delivered another strong quarter. In Q3, Platform revenue grew 23% year over year (YoY) to $1.3 billion, with both Advertising and Subscriptions growing 23%. Total gross profit was $649 million, up 24% YoY, and we generated net income of $183 million, Adjusted EBITDA of $249 million, and Free Cash Flow (TTM) of $796 million. We are building a diversified and durable business by focusing on monetization initiatives: deepening integrations with third-party advertising platforms, growing Roku-billed subscriptions, and enhancing the Roku Experience. With our open platform, we help our content partners attract and retain audiences, and we offer advertisers the ability to reach viewers at scale, all while providing viewers with an outstanding streaming experience.

Third Quarter 2026 Key Results

•Total net revenue was $1.5 billion, up 24% YoY

•Platform revenue was $1.3 billion, up 23% YoY

•Total gross profit was $649 million, up 24% YoY

•Streaming Hours were 39.9 billion, up 9% YoY

•The Roku Channel was the #2 app on our platform by engagement in the U.S. and also globally

Summary Financials ($ in millions)Q3 25Q4 25Q1 26Q2 26Q3 26YoY %

Advertising$591.2$714.7$612.7$672.8$727.423 %

Subscriptions473.4509.3518.5548.2580.923 %

*Platform revenue1,064.61,224.01,131.21,221.01,308.323 %

Devices revenue146.0170.9117.6133.7193.733 %

Total net revenue1,210.61,394.91,248.91,354.71,502.024 %

Advertising345.5428.2371.0420.0459.433 %

Subscriptions202.3218.4213.1226.7237.718 %

Platform gross profit547.8646.7584.1646.8697.127 %

Devices gross profit (loss)(22.9)(39.9)(19.1)26.9(48.6)(112)%

Total gross profit524.9606.8564.9673.7648.524 %

Advertising gross margin %58.4%59.9%60.5%62.4%63.2%4.7 pts

Subscriptions gross margin %42.7%42.9%41.1%41.4%40.9%(1.8)pts

Platform gross margin %51.5%52.8%51.6%53.0%53.3%1.8 pts

Devices gross margin %(15.7)%(23.3)%(16.3)%20.1 %(25.1)%(9.4)pts

Total gross margin %43.4%43.5%45.2%49.7%43.2%(0.2)pts

Research and development182.2184.6189.5179.7186.93 %

Sales and marketing242.1255.3221.2223.2190.9(21)%

General and administrative91.1100.9102.5124.6106.717 %

Total operating expenses515.4540.8513.2527.5484.4(6)%

Income from operations9.566.051.8146.2164.11633 %

Net income24.880.585.7164.2183.3639 %

*Adjusted EBITDA A 116.9169.4148.4254.3248.8113 %

Adjusted EBITDA margin %9.7%12.1%11.9%18.8%16.6%6.9 pts

Cash flow from operations (TTM)455.4483.7544.1719.0810.978 %

*Free cash flow (TTM) A 443.0483.6538.8704.1795.780 %

* Key Performance Metric (KPM) A Refer to reconciliation at the end of this Letter.

Roku Q3 2026 Shareholder Letter

1

Platform Platform revenue grew 23% YoY to $1.3 billion, with gross margin of 53.3%. Our results reflect a simple principle: We succeed when our partners succeed. We are home to the world's leading streaming services, we work with every major buyer of advertising, and we have built our business on interoperability with partners rather than exclusivity. In Q3, that openness drove growth in both Advertising and Subscriptions, and it helped our partners reach and engage audiences and monetize their content.

The Roku Experience (RX) includes our Home Screen, AI-powered recommendations, Roku City, and all our content discovery features (like our Sports Experience). In July, we completed the U.S. rollout of the new Roku Home Screen, designed to maximize content discovery and personalization for viewers while delivering benefits to our content partners and advertisers. We’re improving our ability to provide relevant recommendations, and one early result we are seeing is a reduction in Premium Subscription cancellations. We are now rolling out the new Home Screen to our international markets.

Our discovery features are designed to connect viewers with great content across streaming services on the Roku platform, not only those owned and operated by Roku. Our recent enhancements to Search; and Recommendations use AI/ML to write “Reasons to Watch” that explain why a title fits a viewer's tastes; prioritize SVODs the viewer is already subscribed to; and maintain the viewer’s recent search history across search screens and devices. We are also leveraging AI to improve how our Home Screen and Live TV destination determine shows and movies to feature for the viewer.

Search results showing reasons and ways to watch

The Roku Channel provides viewers with a broad variety of great entertainment, while giving content partners a way to monetize their libraries, and enabling advertisers to reach incremental audiences. We work with more than 250 content partners to continuously enhance the entertainment in The Roku Channel, recently adding popular titles like “CSI,” “The Good Wife,” and “Elementary” from Paramount; “How to Get Away with Murder,” “Reba,” and “Empire” from Disney; and “Minions,” “Erin Brocko

EX-99.1

2 a04fy2026q2exhibit991.htm

EX-99.1

Document

Exhibit 99.1

Fellow Shareholders, August 6, 2026

Following our outstanding results in Q1, we delivered another very strong quarter. In Q2, we grew Platform revenue 25% year over year (YoY), well ahead of our outlook, driven by ongoing momentum in both Advertising and Subscriptions. We continued our track record of profitable growth, generating net income of $164 million, Adjusted EBITDA of $254 million, and Free Cash Flow (TTM) of $704 million – all record highs. These results reinforce our path of sustaining double-digit Platform revenue growth, expanding margins, and growing our north star metric of Free Cash Flow per share.

Second Quarter 2026 Key Results

•Total net revenue was $1.35 billion, up 22% YoY

•Platform revenue was $1.22 billion, up 25% YoY

•Total gross profit was $674 million, up 35% YoY

•Streaming Hours were 37.9 billion, up 7% YoY

•The Roku Channel was the #2 app on our platform by engagement in the U.S. and achieved a platform best share of TV viewing on Nielsen's The Gauge™ for May1

Summary Financials ($ in millions)Q2 25Q3 25Q4 25Q1 26Q2 26YoY %

Advertising$539.1$591.2$714.7$612.7$672.825 %

Subscriptions436.4473.4509.3518.5548.226 %

*Platform revenue975.51,064.61,224.01,131.21,221.025 %

Devices revenue135.6146.0170.9117.6133.7(1)%

Total net revenue1,111.01,210.61,394.91,248.91,354.722 %

Advertising301.6345.5428.2371.0420.039 %

Subscriptions196.0202.3218.4213.1226.716 %

Platform gross profit497.7547.8646.7584.1646.830 %

Devices gross profit (loss)0.0(22.9)(39.9)(19.1)26.9nm

Total gross profit497.7524.9606.8564.9673.735 %

Advertising gross margin %56.0%58.4%59.9%60.5%62.4%6.5 pts

Subscriptions gross margin %44.9%42.7%42.9%41.1%41.4%(3.6)pts

Platform gross margin %51.0%51.5%52.8%51.6%53.0%2.0 pts

Devices gross margin %0.0 %(15.7)%(23.3)%(16.3)%20.1 %20.1 pts

Total gross margin %44.8%43.4%43.5%45.2%49.7%4.9 pts

Research and development178.0182.2184.6189.5179.71 %

Sales and marketing243.3242.1255.3221.2223.2(8)%

General and administrative99.791.1100.9102.5124.625 %

Total operating expenses521.0515.4540.8513.2527.51 %

Income (loss) from operations(23.3)9.566.051.8146.2nm

Net income (loss)10.524.880.585.7164.21464 %

*Adjusted EBITDA A 78.2116.9169.4148.4254.3225 %

Adjusted EBITDA margin %7.0%9.7%12.1%11.9%18.8%11.7 pts

Cash flow from operations (TTM)396.4455.4483.7544.1719.081 %

*Free cash flow (TTM) A 392.0443.0483.6538.8704.180 %

* Key Performance Metric (KPM) A Refer to reconciliation at the end of this Letter.

1 Nielsen's The Gauge™ May 2026

Roku Q2 2026 Shareholder Letter

1

Platform

Platform revenue grew 25% YoY to $1.22 billion, with gross margin of 53.0%. Growth was driven by meaningful contributions from both Advertising and Subscriptions, underscoring the increasing diversity of our monetization. The Roku Experience (RX), which includes our Home Screen, AI-powered recommendations, and all our content discovery features, remains a powerful competitive advantage that drives engagement, advertising, and subscriptions across our platform.

In Q2, we began rolling out the new Roku Home Screen, our biggest update in more than a decade, shaped by deep behavioral insights and what we’ve heard directly from customers. The Roku Home Screen is one of the most valuable pieces of real estate in TV. In the U.S. alone, it is used by more than half of broadband households, reaching them before they decide what to watch. Our new Home Screen is designed to maximize content discovery and personalization for our viewers, while simultaneously delivering benefits to our content partners and advertisers, and growing Platform monetization. We completed the rollout in the U.S. early in the third quarter, and results are encouraging. For example, our new Home Screen improved our ability to retain households in the U.S., resulting in more users we can serve and thus reducing overall costs to grow Streaming Households. We expect to roll out our new Home Screen to our international markets in the coming months.

The new Roku Home Screen is focused on personalization and helping viewers find what to watch.

To further help our viewers find content faster and engage more deeply with the Roku Experience, we are improving our search functionality. We are incorporating advanced AI for more accurate interpretations of our viewers’ queries, even when the queries are broad, conversational, or only based on mood and context. We believe these improvements can strengthen Roku’s monetization opportunities over time by supporting subscription conversion and retention, increasing monetizable Streaming Hours, and improving the performance of advertising and merchandising.

Roku Q2 2026 Shareholder Letter

2

Advertising Advertising revenue grew 25% YoY to $673 million, and advertising gross margin expanded to 62.4%, up approximately 190 basis points QoQ and 650 basis points YoY, driven primarily by a mix shift toward higher-margin ad pr

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.e618d017.1784723828.76da495

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.