01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Roku, Inc. reported a return to net income in 2025, with net income of $88.4 milliona compared with a net loss of $129.4 million in 2024.
Total net revenue rose 15% to $4.74 billionb, driven by Platform revenue, which grew 18% to $4.14 billion on higher streaming services distribution revenue (notably Premium Subscriptions and subscription revenue from third-party and owned-and-operated services) and improved video ad monetization. Devices revenue was roughly flat at $592.4 million, as higher Roku-made TV sales offset lower streaming player sales. Streaming Hours grew 15% to 145.6 billion, and Adjusted EBITDA increased to $420.5 million from $260.2 million.
Free Cash Flow (TTM) was $483.6 millionc versus $203.2 million a year earlier. The company acquired Frndly TV in May 2025 for total purchase consideration of $169.8 million, and launched Howdy, an ad-free SVOD service, in August 2025. Cash and cash equivalents were $1.59 billion and short-term investments were $730.2 million at year-end, with no borrowings under its $300.0 million revolving Credit Agreement.
The company repurchased $150.0 milliond of Class A stock in 2025, leaving $250.0 million available under a $400 million program. Devices gross profit remained negative at $(82.0) million, and the filing notes that Amazon, Best Buy, Walmart and Target together accounted for 81% of Devices revenue.
Key risks highlighted include intense competition from larger technology and TV companies, reliance on a small number of content partners for nearly half of Streaming Hours, dependence on third-party contract manufacturers and sole-source components, tariff and trade-policy uncertainty, and the dual-class structure that gives founder and CEO Anthony Wood majority voting control despite owning 11.6% of outstanding Class A and Class B shares. The accumulated deficit stood at $1.49 billion, and the company expects the valuation allowance on its U.S. deferred tax assets may be reversed within the next twelve to eighteen months.
02—Key points
Key Highlights
- Net income of $88.4 million in 2025, versus a net loss of $129.4 million in 2024
- Total net revenue of $4.74 billion, up 15%; Platform revenue of $4.14 billion, up 18%
- Streaming Hours of 145.6 billion, up 15% from 127.1 billion in 2024
- Adjusted EBITDA of $420.5 million, up from $260.2 million; Free Cash Flow (TTM) of $483.6 million, up from $203.2 million
- Frndly TV acquired in May 2025 for $169.8 million in total purchase consideration; Howdy launched in August 2025
- Cash and short-term investments totaled $2.32 billion at year-end, with $150.0 million of stock repurchased in 2025 and $250.0 million remaining under the $400 million authorization
- Founder and CEO Anthony Wood controls a majority of combined voting power despite owning 11.6% of Class A and Class B shares
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Roku kept $0.02.
- Revenue$4.74B100.0%
- Cost of revenue−$2.66B56.2%
- Gross profit$2.07B43.8%
- Operating costs−$2.08B43.9%
- Operating income−$5.6M0.1%
- Interest, other & tax$94.0M2.0%
- Net income$88.4M1.9%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.74B$4.11B | +15.2% |
| Cost of Revenue | $2.66B$2.31B | +15.4% |
| Gross Profit | $2.07B$1.81B | +14.9% |
| R&D Expenses | $729.48M$720.14M | +1.3% |
| Operating Expenses | $2.08B$2.02B | +2.8% |
| Operating Income | -$5.62M-$218.17M | +97.4% |
| Net Income | $88.36M-$129.39M | +168.3% |
| EPS (Basic) | $0.60$-0.89 | +167.4% |
| EPS (Diluted) | $0.59$-0.89 | +166.3% |
| Shares Outstanding (Basic) | 147.15M144.63M | +1.7% |
| Shares Outstanding (Diluted) | 150.91M144.63M | +4.3% |
05—Questions
Frequently Asked Questions
How did Roku's profitability change in 2025?
Roku reported net income of $88.4 million for 2025, compared with a net loss of $129.4 million in 2024. Loss from operations narrowed to $(5.6) million from $(218.2) million, and Adjusted EBITDA rose to $420.5 million from $260.2 million. Stock-based compensation of $354.2 million was a significant non-cash expense in both years.
What drove revenue growth in 2025?
Platform revenue increased $622.1 million, or 18%, to $4.14 billion, primarily due to higher streaming services distribution revenue, specifically higher Premium Subscription revenue and higher subscription revenue from third-party and owned-and-operated services. Advertising revenue also increased on improved video ad monetization, including Roku Ads Manager, partly offset by weakness in the media and entertainment vertical. Devices revenue was essentially flat at $592.4 million.
What are the main concentration risks investors should consider?
The filing states that Amazon, Best Buy, Walmart and Target together accounted for 81% of Devices revenue in 2025 and 2024. Customer J accounted for 11% of total net revenue in 2025. The top three streaming services (excluding The Roku Channel) represented nearly half of all hours streamed in 2025, and Roku has no minimum purchase commitments with its retailers.
How is Roku capitalized and what financing is available?
At December 31, 2025, Roku had $1.59 billion in cash and cash equivalents and $730.2 million in short-term investments, with a $300.0 million revolving Credit Agreement maturing September 16, 2029. The company had not borrowed under the facility and had $39.5 million of letters of credit outstanding against it. Roku repurchased $150.0 million of Class A stock in 2025 and has not paid dividends.
What governance feature should shareholders of Class A stock be aware of?
Class B common stock carries 10 votes per share and Class A carries one vote per share. Anthony Wood, founder, Chairman and CEO, controls a majority of the combined voting power, even though he owns 11.6% of the outstanding Class A and Class B common stock. Roku has not elected the controlled company exemption under Nasdaq rules.
06—Continue