Latest quarter
Roku reported Q2 FY2026 revenue of $1.4 billion, above the consensus estimate of $1.3 billion and up from $1.1 billion a year earlier. Diluted earnings per share rose to $1.08 from $0.07.
In its filing, Roku attributed advertising revenue growth primarily to more video ad impressions, partly offset by a lower average price per impression. The company said subscription revenue also grew, driven by more subscriptions and a higher average price, while devices revenue declined as shipments fell.
Roku reported a gross margin of 49.7%, compared with 44.8% a year earlier, and an operating margin of 10.8%, compared with −2.10%. Its filing said lower freight costs, primarily from a refund of tariff payments made in previous quarters, reduced device costs. Roku reported free cash flow of $280.9 million, compared with $108.6 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.4 billion | $1.1 billion | 21.9% |
| Diluted EPS | $1.08 | $0.07 | 1,442.9% |
| Gross margin | 49.7% | 44.8% | 4.9 percentage points |
| Operating margin | 10.8% | −2.10% | 12.9 percentage points |
| Free cash flow | $280.9 million | $108.6 million | 158.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $1.4 billion | $1.3 billion | Beat by 4.23% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
The latest earnings call is unavailable. In its quarterly filing, Roku said it believes greater engagement can increase platform monetization, but streaming hours do not correlate with revenue from content partners or average revenue per user on a period-by-period basis.
Guidance
Management’s guidance is unavailable. In its quarterly filing, Roku said it expects to manage streaming-device prices to sell more devices, a trade-off it believes will increase streaming households and, over time, platform revenue and gross profit.