Roku Inc (ROKU)
NASDAQCommunication ServicesEntertainmentSnapshot 2026-09-04
$155.59-1.72%
Close 2026-09-04 · 1-day change
NASDAQCommunication ServicesEntertainmentSnapshot 2026-09-04
QuarterlyIQ Insights · ROKU
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within communication services on a research-validated quality screen. As of 2026-09-04.
The screen ranks ROKU against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Communication Services names rated strong grew net income 52% of the time over the next year (vs 53% for the rest of the cohort, n=1891).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue growing Platform revenue with focus on Advertising and Subscriptions to achieve high double-digit year-over-year growth.
Stated as a priority in 3 of last 3 quarters. Platform revenue grew from $880.8M in 2025-Q1 to $1.22B in 2026-Q2, representing 25-28% YoY growth each quarter. Management consistently emphasizes sustaining double-digit Platform revenue growth and the trajectory is delivering.
“In Q2, we grew Platform revenue 25% year over year (YoY), well ahead of our outlook... sustaining double-digit Platform revenue growth.”
“Platform revenue grew 28% year over year (YoY), driven by strength in Advertising and Subscriptions.”
“Platform revenue grew 25% YoY to $1.22 billion, with gross margin of 53.0%.”
Target Adjusted EBITDA of $675 million for full year 2026, reflecting margin improvement and profitable growth.
Management stated this priority in 3 of last 3 quarters. Adjusted EBITDA grew from $78.2M in 2025-Q2 to $254.3M in 2026-Q2, a 225% increase. Full year 2026 guidance is $675M, reflecting margin improvement of 330 basis points YoY. The trajectory is delivering on this profitability target.
“We delivered Adjusted EBITDA of $254 million, a 225% increase YoY.”
Increase total net revenue to $5.5 billion for fiscal year 2026, driven by Platform and Devices revenue growth.
This priority was stated in 3 of last 3 quarters. Total net revenue grew from $1.20B in 2024-Q4 to $1.39B in 2025-Q4 (+16%). Management raised full year 2026 revenue guidance to $5.5B. The trajectory shows consistent revenue growth and raised outlook, indicating delivery.
Grow Roku-made TV unit sales and expand OEM licensing relationships to increase market share and device revenue.
Stated in 2 of last 2 quarters. Roku-made TVs reached about 5% of U.S. TV unit sales in 2026-Q2. Management expanded OEM licensing partnerships expecting contributions in second half 2026. The trajectory shows progress in device footprint expansion.
“We continue to expand our Roku-made TV footprint and diversified OEM licensing relationships.”
Finalize the merger agreement with Fox Corporation to accelerate growth and innovation as a combined company.
Newly stated in 2026-Q2. Roku announced definitive agreement to be acquired by Fox Corporation with expected closing in first half 2027. This is a strategic milestone with no financial results yet; trajectory is pending completion.
“Roku entered into a definitive agreement to be acquired by Fox Corporation, expected to close in first half of 2027.”
Over the trailing year it converted -5.66x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
9 material management or governance events in the past 24 months, led by executive changes. Historically, Communication Services names rated stable grew net income 52% of the time over the next year (vs 54% for the rest of the cohort, n=799).
Not investment advice. As of 2026-09-04.
“We expect Adjusted EBITDA of $675 million for full year 2026, margin improvement of 330 basis points YoY.”
“Adjusted EBITDA was $169 million, up 225% YoY.”
“We now expect Total net revenue of $5.5 billion for full year 2026.”
“We expect Total net revenue of $5.5 billion for full year 2026.”
“Total net revenue was $1.39 billion in 2025-Q4, up 22% YoY.”
“We are actively expanding and diversifying our OEM licensing agreements and expect new partnerships to contribute in second half of 2026.”