01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
Roku, Inc. reported net revenue of $1,111,038 thousanda ($1.11 billion) for the three months ended June 30, 2025, up from $968,179 thousand in the prior-year quarter.
Platform revenue was $975,471 thousandb, up $151.1 million, or 18%, driven mainly by higher advertising revenue despite continued weakness in the media and entertainment vertical, and by higher Premium Subscriptions revenue and subscription revenue from the Frndly acquisition, which contributed approximately 1.8 points of growth. Devices revenue declined $8.3 million, or 6%, as lower streaming player revenue offset higher average selling prices from Roku-branded TVs. The company recorded net income of $10,503 thousand for the quarter, compared with a net loss of $33,953 thousand a year earlier, and Adjusted EBITDA of $78,188 thousand versus $43,642 thousand.
For the six months ended June 30, 2025, the company reported a net loss of $16,928 thousandc, narrower than the $84,808 thousand loss in the prior-year period, on total net revenue of $2,131,710 thousand. Net cash provided by operating activities was $248,465 thousand, and trailing twelve-month Free Cash Flow was $391,987 thousand. Cash and cash equivalents totaled $2,253,276 thousand at June 30, 2025.
The company acquired Frndly TV, Inc. on May 9, 2025 for a total purchase consideration of $169.8 million, including up to $75.0 milliond of contingent cash consideration payable over two years. Management stated that for full-year 2025 it expects devices revenue and gross margin to be slightly down, mostly due to tariffs.
The filing also notes an accumulated deficit of $1,443.9 million, a $300.0 million revolving Credit Agreement under which nothing had been borrowed as of June 30, 2025, and a valuation allowance against U.S. deferred tax assets. Customer J accounted for 12% of total net revenue for the three and six months ended June 30, 2025.
02—Key points
Key Highlights
- Total net revenue of $1,111,038 thousand for Q2 2025, up from $968,179 thousand in Q2 2024; Platform revenue rose 18% to $975.5 million.
- Devices revenue fell 6% to $135.6 million, with average selling price of devices shipped up 8% and volume down 9%.
- Net income of $10,503 thousand in Q2 2025 versus a net loss of $33,953 thousand in Q2 2024; six-month net loss narrowed to $16,928 thousand from $84,808 thousand.
- Adjusted EBITDA of $78,188 thousand for Q2 2025, compared with $43,642 thousand in Q2 2024.
- Free Cash Flow (TTM) of $391,987 thousand through June 30, 2025, up from $317,917 thousand a year earlier; cash and cash equivalents of $2,253,276 thousand.
- Acquired Frndly TV on May 9, 2025 for $169.8 million in total purchase consideration, which contributed approximately 1.8 points of Platform revenue growth in Q2.
- Management expects devices revenue and gross margin to be slightly down for full-year 2025, mostly due to tariffs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Roku kept $0.01.
- Revenue$1.11B100.0%
- Cost of revenue−$613.4M55.2%
- Gross profit$497.7M44.8%
- Operating costs−$521.0M46.9%
- Operating income−$23.3M2.1%
- Interest, other & tax$33.8M3.0%
- Net income$10.5M0.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.11B$968.18M | +14.8% |
| Cost of Revenue | $613.38M$543.48M | +12.9% |
| Gross Profit | $497.66M$424.70M | +17.2% |
| R&D Expenses | $178.02M$175.48M | +1.4% |
| Operating Expenses | $520.99M$495.94M | +5.1% |
| Operating Income | -$23.33M-$71.24M | +67.2% |
| Net Income | $10.50M-$33.95M | +130.9% |
| EPS (Basic) | $0.07$-0.24 | +129.2% |
| EPS (Diluted) | $0.07$-0.24 | +129.2% |
| Shares Outstanding (Basic) | 146.89M144.34M | +1.8% |
| Shares Outstanding (Diluted) | 149.68M144.34M | +3.7% |
05—Questions
Frequently Asked Questions
How did Roku's revenue and profitability change in the second quarter of 2025?
Total net revenue rose to $1,111,038 thousand from $968,179 thousand, and the company reported net income of $10,503 thousand compared with a net loss of $33,953 thousand a year earlier. Loss from operations narrowed to $23,333 thousand from $71,243 thousand.
What drove the growth in Platform revenue?
Platform revenue increased $151.1 million, or 18%, primarily due to higher advertising revenue, plus higher Premium Subscriptions revenue and subscription revenue from the Frndly acquisition. The filing notes continued weakness in the media and entertainment advertising vertical.
What is the company's liquidity position?
Cash and cash equivalents were $2,253,276 thousand as of June 30, 2025. The company had not borrowed under its $300.0 million revolving Credit Agreement, which matures on September 16, 2029, and it stated it was in compliance with all covenants.
What did the Frndly TV acquisition involve?
Roku acquired Frndly TV, Inc. on May 9, 2025 for total purchase consideration of $169.8 million, consisting of $103.6 million in cash and $65.8 million of contingent consideration fair value. Up to $75.0 million in additional cash may be paid on achievement of performance metrics over two years, and goodwill of $147,887 thousand was recorded.
What is the outlook for devices revenue?
The filing states that for full-year 2025 the company expects devices revenue and gross margin to be slightly down, mostly due to tariffs, and notes that the effects of macroeconomic factors remain largely uncertain.
06—Continue