01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Roku, Inc. reported first-quarter 2026 results in this Form 10-Q.
Total net revenue was $1.25 billiona versus $1.02 billion a year earlier, and Platform revenue (Advertising plus Subscriptions) was $1.13 billion versus $880.8 million. Advertising revenue rose to $612.7 million from $482.8 million, driven mainly by a 59% increase in video impressions partly offset by a 14% lower average price per impression. Subscriptions revenue rose to $518.5 million from $398.0 million, reflecting a 12% increase in subscriptions and a 22% increase in average price per subscription, including contributions from Frndly TV and Howdy.
Devices revenue fell 16% to $117.6 millionb, with the average selling price down 3% and volume down 15%. Profitability improved. Income from operations was $51.8 million versus an operating loss of $57.7 million a year earlier, and net income was $85.7 million, or $0.57 per diluted share, compared with a net loss of $27.4 million.
Adjusted EBITDA was $148.4 millionc versus $56.0 million, and trailing-twelve-month Free Cash Flow was $538.8 million versus $298.4 million. Operating cash flow for the quarter was $199.1 million. The company repurchased about 1.0 million shares for $100.0 million, leaving $150.0 million available under its $400 million program through December 31, 2026.
Cash and cash equivalents were $1.65 billiond and short-term investments were $730.3 million at March 31, 2026, and the company had no borrowings under its $300.0 million revolving Credit Agreement. The filing also notes that the company changed its reportable segments to Advertising, Subscriptions, and Devices effective the first quarter of 2026.
It reports a full valuation allowance against U.S. net deferred tax assets and says a release may occur within the next twelve months. Customer J accounted for 11% of total net revenue, and Amazon, Best Buy, Target, and Walmart together accounted for 86% of Devices revenue.
02—Key points
Key Highlights
- Total net revenue of $1,248.9 million, up from $1,020.7 million; Platform revenue of $1,131.2 million, up from $880.8 million.
- Advertising revenue of $612.7 million (up from $482.8 million), driven by a 59% increase in video impressions, partly offset by a 14% decline in average price per impression.
- Subscriptions revenue of $518.5 million (up from $398.0 million), reflecting a 12% increase in subscriptions and a 22% increase in average price per subscription.
- Devices revenue of $117.6 million, down 16%, with gross loss of $19.1 million, as the average selling price fell 3% and shipment volume fell 15%.
- Net income of $85.7 million ($0.57 diluted EPS) versus a net loss of $27.4 million a year earlier; income from operations of $51.8 million versus a loss of $57.7 million.
- Adjusted EBITDA of $148.4 million (up from $56.0 million) and trailing-twelve-month Free Cash Flow of $538.8 million (up from $298.4 million).
- Share repurchases of $100.0 million in the quarter, with $150.0 million remaining under the $400 million authorization through December 31, 2026; no borrowings under the $300.0 million credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Roku kept $0.07.
- Revenue$1.25B100.0%
- Cost of revenue−$683.9M54.8%
- Gross profit$564.9M45.2%
- Operating costs−$513.2M41.1%
- Operating income$51.8M4.1%
- Interest, other & tax$33.9M2.7%
- Net income$85.7M6.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.25B$1.02B | +22.4% |
| Cost of Revenue | $683.94M$575.63M | +18.8% |
| Gross Profit | $564.94M$445.05M | +26.9% |
| R&D Expenses | $189.49M$184.58M | +2.7% |
| Operating Expenses | $513.16M$502.77M | +2.1% |
| Operating Income | $51.77M-$57.73M | +189.7% |
| Net Income | $85.70M-$27.43M | +412.4% |
| EPS (Basic) | $0.58$-0.19 | +405.3% |
| EPS (Diluted) | $0.57$-0.19 | +400.0% |
| Shares Outstanding (Basic) | 147.51M146.20M | +0.9% |
| Shares Outstanding (Diluted) | 151.02M146.20M | +3.3% |
05—Questions
Frequently Asked Questions
How did Roku's revenue mix change in the first quarter of 2026?
Platform revenue rose to $1,131.2 million from $880.8 million and now represents the majority of total net revenue, with Advertising at $612.7 million and Subscriptions at $518.5 million. Devices revenue declined to $117.6 million from $139.9 million.
Did Roku become profitable in the quarter?
Yes. The company reported net income of $85.7 million and income from operations of $51.8 million, compared with a net loss of $27.4 million and an operating loss of $57.7 million in the first quarter of 2025.
What drove the growth in Subscriptions revenue?
The filing attributes the $120.5 million increase to a 12% rise in the number of subscriptions and a 22% rise in average price per subscription, including the addition of owned and operated services Frndly TV (acquired May 2025) and Howdy (launched August 2025).
How much cash does Roku have and is it borrowing?
At March 31, 2026, Roku had cash and cash equivalents of $1,649.9 million and short-term investments of $730.3 million. It had not borrowed under its Credit Agreement, which provides a $300.0 million revolving facility maturing September 16, 2029, and it was in compliance with its covenants.
Is there a risk to the company's future tax results?
The company has a full valuation allowance against its U.S. net deferred tax assets and believes there is a reasonable possibility that this allowance may be reversed within the next twelve months. The timing and amount depend on the profitability it actually achieves.
06—Continue