Roku Posts Strong Q3 Growth as Advertising and Subscriptions Surge

Roku’s Q3 performance highlights a broader upswing in media‑and‑entertainment advertising.

Roku reported a 24% increase in total revenue for the third quarter, easily topping analysts’ earnings expectations. Gross profit rose 24% to $649 million, and net income jumped more than seven‑fold from the comparable period a year earlier.

The Platform segment generated $1.3 billion, up 23% year over year, with both advertising and subscription sales each climbing 23%.

Advertising on the platform continued to benefit from political spending, exceeding the comparable quarter of the 2024 U.S. presidential election cycle. Roku also said the quarter delivered the strongest year‑over‑year revenue growth for its media‑and‑entertainment category in four years, as media companies increased investment on the Roku platform to promote content and services.

Streaming activity on Roku devices reached 39.9 billion hours, a 9% rise from the prior year. Revenue from the Devices business grew 33%, though the segment posted an operating loss of $48.6 million, reflecting a negative gross margin driven by higher memory costs.

Fox Corp. announced a deal to acquire Roku for $22 billion, with the transaction expected to close in the first half of 2027. Roku will not hold an earnings call or issue guidance while the acquisition is pending.

In a letter to shareholders, founder and CEO Anthony Wood and CFO/COO Dan Jedda described the pending deal as an “extraordinary opportunity” to accelerate the company’s vision, emphasizing plans to deepen third‑party ad integrations, expand Roku‑billed subscriptions, and enhance the overall Roku experience.

Wood is slated to join the Fox board and retain an ongoing role at the combined company after the acquisition closes.

Roku’s diversified growth strategy positions it to capitalize on rising ad spend while navigating the challenges of a loss‑making devices segment.