Roku, Inc.
ROKU Communication Services Entertainment
Roku, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $4.7 billion, up 15.2% from fiscal 2024. In the quarter to June 2026, revenue grew 21.9%, EPS grew 1,485.7% and free cash flow grew 158.6%, each against the same quarter a year earlier. Revenue growth for ten consecutive years.
Follow ROKU
Roku, Inc. (ROKU) Altman Z-score
Roku, Inc.'s Altman Z-score for fiscal 2025 is 6.57, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 6.57 | 2.13 |
| FY2024 | 4.44 | 0.14 |
| FY2023 | 4.31 | 1.77 |
| FY2022 | 2.54 | (12.79) |
| FY2021 | 15.33 | (12.04) |
| FY2020 | 27.38 | 14.60 |
| FY2019 | 12.78 | 2.70 |
| FY2018 | 10.08 | 5.35 |
| FY2017 | 4.73 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.49 | — | 0.59 | |
| Retained earnings / total assets | (0.34) | — | −0.47 | |
| EBIT / total assets | 0.00 | — | −0.00 | |
| Market value of equity / total liabilities | 8.99 | — | 5.39 | |
| Sales / total assets | 1.07 | — | 1.07 | |
| Altman Z-score | Safe zone | 6.57 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.67 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ROKU Roku, Inc. | 6.6× |
| FOXA Fox Corporation compare | 3.1× |
| FOX Fox Corporation compare | 3.0× |
| NWS News Corporation compare | 2.4× |
| NWSA News Corporation compare | 2.2× |
| TKO TKO Group Holdings, Inc. compare | 2.1× |
| WMG Warner Music Group Corp. compare | 1.7× |
| FWONA Liberty Media Corporation - Liberty Formula One Series A compare | — |
| FWONK Liberty Media Corporation - Liberty Formula One Series C compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets