Roku sees annual revenue of $5.5 bln after Q1 sales beat

Overview

• U.S. streaming platform's Q1 revenue rose 22% yr/yr, beating analyst expectations

• Platform revenue grew 28% yr/yr, led by advertising and subscriptions

• Company repurchased $100 mln of shares in Q1 under ongoing buyback program

Outlook

• Roku expects Q2 2026 net revenue of $1.295 bln

• Company sees full-year 2026 net revenue of $5.535 bln

• Roku forecasts Q2 2026 net income of $90 mln and adjusted EBITDA of $170 mln

Result Drivers

• ADVERTISING GROWTH - Advertising revenue grew 27% yr/yr, driven by increased video ad demand, programmatic ad spend, and more advertisers using Roku Ads Manager

• SUBSCRIPTIONS MOMENTUM - Subscription revenue rose 30% yr/yr, with record premium sign-ups and expanded distribution of owned and operated services

• ENGAGEMENT & PLATFORM FEATURES - The Roku Experience, including Home Screen, content discovery, and AI-powered recommendations, drove engagement and monetization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Roku Inc is $130.00, about 15.4% above its April 29 closing price of $112.62

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 89 three months ago

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