Roku Delivers Another Stellar Quarter: Q3 Sales Soar 24% as Media and Entertainment Ad Spending Sees Biggest Growth in Four Years — SkimNews
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- Roku posted Q3 revenue of $1.50 billion, up 24% year over year, and topped Wall Street earnings expectations; gross profit rose 24% to $649 million, while net income jumped more than sevenfold to $183 million.
- Roku’s Platform segment generated $1.3 billion in Q3 revenue, up 23% year over year, as advertising and subscription sales each rose 23%.
- Roku said political advertising exceeded the comparable quarter of the 2024 U.S. presidential election cycle, while media and entertainment revenue posted its strongest year-over-year growth in four years.
- Roku recorded 39.9 billion streaming hours in Q3, up 9% year over year.
- Roku Devices posted 33% revenue growth to $194 million, but the segment recorded a $48.6 million operating loss and a -25% gross margin, driven primarily by higher memory costs.
- Fox announced on June 15 an agreement to acquire Roku for $22 billion, with the deal expected to close in the first half of calendar year 2027; Roku is not hosting an earnings call or providing financial guidance because of the pending transaction.
- Anthony Wood and Dan Jedda said Fox's acquisition offers Roku an extraordinary opportunity to scale faster and innovate more aggressively, as Roku pursues deeper third-party advertising integrations, growing Roku-billed subscriptions and enhancements to the Roku Experience; after closing, Wood will retain an ongoing role at the combined company and join Fox's board.
Why it matters: Fox’s pending $22 billion acquisition centers on a Roku whose advertising and subscription sales each grew 23% in Q3 and whose companywide net income reached $183 million. Roku is not providing financial guidance while the deal awaits expected closure in the first half of 2027, leaving the standalone business’s financial trajectory less visible.
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