Key Highlights

  • Net Revenue for the quarter reached $1.502 billion, which rose 24% from $1.211 billion.
  • Diluted earnings per share hit $1.20, while Net Income stood at $183.3 million; the year-earlier figures were $0.16 and $24.8 million.
  • The adjusted EBITDA measure came in at $248.8 million, more than double the $116.9 million posted a year earlier.
  • Platform sales climbed 23%, reaching $1.308 billion; of that, $727.4 million came from ads and $580.9 million from subscriptions.
  • Viewing time on the platform rose 9%, totaling 39.9 billion streaming hours, while free Cash Flow over the Trailing Twelve Months reached $795.7 million.

Operating Income Rises to $164.1 Million on a 24% Sales Gain

Roku (NASDAQ:ROKU) published figures covering the period closing Sep 30, 2026, in a report bearing the Nov 2, 2026 date. Total net revenue climbed 24% to $1.502 billion from $1.211 billion, while Gross Profit improved 24%, reaching $648.5 million, and the gross Margin came to roughly 43% (calculated).

Operating income landed at $164.1 million, up from $9.5 million the year before. Net income climbed to $183.3 million, while Diluted Earnings per Share rose to $1.20 from $0.16. Operating expenses were $484.4 million, down from $515.4 million, mainly as sales and Marketing spending dropped.

The streaming platform Business runs a TV operating system and generates income from Advertising and subscriptions delivered through it. The adjusted EBITDA figure, which rose past double its prior level to 248.8 million, excludes stock-based compensation along with a Lease Credit of 22.3 million and Merger costs of 13.6 million.

Ad Views Grow 33% as Average Ad Price Drops 7%

Advertising sales rose 23%, landing at $727.4 million. Ad impressions for video went up 33% thanks to stronger engagement, yet the average price per impression fell 7% amid shifts in product and country mix. Gross profit from advertising climbed 33%, reaching $459.4 million.

Subscriptions revenue increased 23% to $580.9 million, supported by a 7% rise in subscriber count and a 27% gain in the mean price for each subscription. Subscriptions gross profit rose by 18% to $237.7 million, a slower pace than revenue, with licensing and content expenses up 27%.

Devices Sales Climb 33% but the Gross Loss Deepens to $48.6 Million

Devices revenue rose 33%, reaching $193.7 million. Unit shipments dropped 21%, largely because streaming player sales weakened, yet the average selling price jumped 71% due to a heavier share of Roku-made televisions. The devices unit's gross result was negative at $48.6 million, compared with a negative $22.9 million in the prior-year period.

Gross profit from the platform side reached $697.1 million, a 27% rise, offsetting the devices setback. Across the first nine months, revenue reached $4.106 billion, a 23% gain, while net income came in at $433.3 million, up from $7.9 million.

Roughly $2.5 Billion in Cash and a Pending Deal Dominate the Outlook

The company held $2.519 billion of cash and equivalents, along with $201.8 million of short-term holdings, at the end of September, with no borrowings under its $300 million revolver. Nine-month Operating Cash Flow reached $703.2 million, and Roku bought back $162.7 million of shares before halting the program after entering a merger agreement.

Under the Jun 14, 2026 pact with a sizable US media business, Roku holders would receive acquirer Class A stock at a 0.9693 ratio per Roku share, along with $96.00 of cash. Existing Roku holders would hold roughly 27% of the merged entity. Completion hinges on antitrust approval and other conditions, and a $866.1 million termination fee applies in defined circumstances, which makes regulatory developments the main thing to follow.