01—Abstract
Summary
Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Roku, Inc. reported first-quarter 2026 results for the period ended March 31, 2026, in a Shareholder Letter furnished under Item 2.02 of this Form 8-K.
Total net revenue was $1.25 billiona, up 22% year over year, and Platform revenue was $1.13 billion, up 28%. Advertising revenue reached $613 million (up 27%) and Subscriptions revenue reached $519 million (up 30%, or 23% excluding Frndly). Net income was $86 million, compared with a net loss of $27 million in the prior-year quarter, and Adjusted EBITDA was $148 million, up 165%.
Free Cash Flow (TTM) reached $539 millionb, up 81%. Devices revenue declined 16% to $118 million, with gross margin of (16.3)%, reflecting lower player unit sales and promotional pricing. Management flagged rising memory chip costs that it expects to weigh on Devices margins in the second half of 2026, and said new OEM licensing partnerships are expected to contribute to Roku TV model unit volume in that period.
Management raised its full-year 2026 outlook, now expecting Platform revenue growth of nearly 21% to $5.0 billionc, total net revenue of $5.5 billion, total gross profit of $2.45 billion, net income of $360 million, and Adjusted EBITDA of $675 million. For the second quarter, it guided to total net revenue of $1.3 billion, Adjusted EBITDA of $170 million, and Platform revenue growth of approximately 20%. The company also repurchased $100 million of stock in the first quarter, bringing total repurchases to $250 million since the third quarter of 2025 under a $400 million program, and reiterated its goal of $1 billion of Free Cash Flow by 2028, if not sooner.
02—Key points
Key Highlights
- Q1 2026 Platform revenue rose 28% YoY to $1.13 billion, with Advertising up 27% to $613 million and Subscriptions up 30% to $519 million.
- Net income was $85.7 million versus a net loss of $27.4 million a year earlier; Adjusted EBITDA was $148.4 million, up 165% YoY, with Adjusted EBITDA margin of 11.9%.
- Free Cash Flow (TTM) reached $538.8 million, up 81% YoY, described by management as an all-time high.
- Devices revenue fell 16% YoY to $118 million with gross margin of (16.3)%, and management expects higher memory costs to pressure Devices margins in the second half of 2026.
- FY2026 outlook raised: total net revenue of $5.5 billion, total gross profit of $2.45 billion, net income of $360 million, and Adjusted EBITDA of $675 million.
- Q2 2026 guidance calls for total net revenue of $1.3 billion (up nearly 17% YoY), total gross profit of $580 million, and Adjusted EBITDA of $170 million.
- The company repurchased $100 million of stock in Q1, totaling $250 million since Q3 under a $400 million repurchase program.
03—Questions
Frequently Asked Questions
How did Roku's core revenue streams perform in the first quarter of 2026?
Platform revenue grew 28% YoY to $1.13 billion. Advertising revenue was $613 million, up 27%, and Subscriptions revenue was $519 million, up 30%. Excluding Frndly, Subscriptions revenue grew 23% YoY. Devices revenue declined 16% to $118 million.
Is Roku becoming more profitable?
Yes. The company reported net income of $85.7 million in Q1 2026 compared with a net loss of $27.4 million in Q1 2025. Adjusted EBITDA rose to $148.4 million, up 165% YoY, and Adjusted EBITDA margin was 11.9%, up 6.4 points. Income from operations was $51.8 million versus a loss of $57.7 million a year earlier.
What does Roku expect for the rest of 2026?
For full-year 2026, Roku raised its outlook to Platform revenue of nearly 21% growth to $5.0 billion, Devices revenue of approximately $535 million, total net revenue of $5.5 billion, and Adjusted EBITDA of $675 million. For Q2 2026, it expects total net revenue of $1.3 billion and Adjusted EBITDA of $170 million. Management expects operating expenses to be more heavily weighted toward the second half of the year.
What risks does management highlight for Devices?
Management is monitoring pricing pressure from tightening memory chip supply, which it expects to weigh on Devices margins in the second half of 2026. Devices gross margin was (16.3)% in Q1 2026. The company says its Roku TV OS requires significantly less memory than competing platforms and expects new OEM partnerships to begin contributing to Roku TV model unit volume in the second half of 2026.
How is Roku returning capital and what are its cash flow targets?
Roku repurchased $100 million of common stock in Q1 2026, for $250 million since Q3 under a $400 million stock repurchase program. Free Cash Flow (TTM) was $538.8 million. Management reiterated its goal of achieving $1 billion of Free Cash Flow by 2028, if not sooner.
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