01—Abstract
Summary
Summary of the 8-K filed November 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Roku, Inc. reported results for the quarter ended September 30, 2026 in a Shareholder Letter furnished as Exhibit 99.1 to this Form 8-K.
Total net revenue was $1.5 billiona, up 24% year over year, led by Platform revenue of $1.3 billion, up 23%, with Advertising and Subscriptions both up 23%. Total gross profit was $649 million, up 24%, and income from operations was $164.1 million, compared with $9.5 million a year earlier. Net income was $183.3 million, and Adjusted EBITDA was $248.8 million, with trailing-twelve-month free cash flow of $795.7 million.
Devices revenue was $193.7 millionb, up 33%, but Devices gross margin was (25.1%), which the company attributed primarily to elevated memory costs. Management highlighted growth in Advertising, where gross margin rose to 63.2% on a mix shift toward higher-margin ad products, and noted that Subscriptions gross margin declined to 40.9% due to a strategic mix shift toward Premium Subscriptions. Streaming Hours were 39.9 billion, up 9%.
The company said it remains on track with the second-half 2026 forecast provided in the proxy statement. The letter states that Fox Corporation agreed on June 15, 2026 to acquire Roku under a definitive agreement, which is pending.
Because of the pending transaction, Roku will not host an earnings call and will not provide a financial outlook. The letter also cites $13.6 millionc of merger-related costs in the quarter.
02—Key points
Key Highlights
- Total net revenue of $1.5 billion, up 24% year over year; Platform revenue of $1.3 billion, up 23%
- Advertising revenue of $727 million, up 23%, with gross margin of 63.2%, up approximately 470 basis points year over year
- Subscriptions revenue of $581 million, up 23%, with gross margin of 40.9%, down roughly 180 basis points year over year
- Income from operations of $164.1 million versus $9.5 million a year earlier; net income of $183.3 million
- Adjusted EBITDA of $248.8 million (16.6% margin) and trailing-twelve-month free cash flow of $795.7 million
- Devices revenue of $193.7 million, up 33%, with gross margin of (25.1%) driven primarily by elevated memory costs
- Pending acquisition by Fox Corporation announced June 15, 2026; no earnings call and no financial outlook will be provided
03—Questions
Frequently Asked Questions
How did Roku perform financially in the third quarter of 2026?
Total net revenue was $1.5 billion, up 24% year over year, and total gross profit was $649 million, up 24%. Net income was $183.3 million, and Adjusted EBITDA was $248.8 million.
What drove growth in the Platform business?
Platform revenue grew 23% year over year to $1.3 billion, with Advertising and Subscriptions each up 23%. The company cited integrations with third-party DSPs, growth in Roku-billed Premium Subscriptions, and enhancements to the Roku Experience home screen and discovery features.
Why did Devices gross margin decline?
The letter states that Devices gross margin was (25.1%), driven primarily by elevated memory costs, even though Devices revenue rose 33% year over year to $193.7 million.
Will Roku hold an earnings call or provide guidance?
No. Because of the pending transaction with Fox, Roku will not host an earnings call and will not provide a financial outlook. The letter says the company remains on track with the second-half 2026 forecast provided in the proxy statement.
What is the status of the Fox acquisition?
On June 15, 2026, Fox Corporation and Roku announced a definitive agreement under which Fox will acquire Roku. The transaction is pending, and the letter cites $13.6 million of merger-related costs in the third quarter.
04—Continue