• In February 2026, Roku reported fourth-quarter 2025 revenue of US$1,394.9 million and net income of US$80.48 million, capping its first full year of profitability with full-year revenue of US$4,737.25 million and net income of US$88.36 million.
• The results were fueled by accelerating, higher-margin platform revenue, outperformance in video advertising, and record premium subscription additions, while Roku outlined plans for bundled subscriptions, AI-enhanced ad tools, and further margin expansion in 2026.
• With Roku returning to full-year profitability and highlighting rapid growth in its platform revenue, we will now assess how this reshapes its investment narrative.

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Roku Investment Narrative Recap

To own Roku today, I think you have to believe its advertising fueled platform can keep scaling even as smart TV competition intensifies and ad budgets move around. This latest quarter confirms profitability and strong platform momentum, but it also raises the stakes: the key near term catalyst is continued acceleration in high margin platform revenue, while the biggest risk remains Roku’s heavy exposure to a cyclical ad market and powerful rival ecosystems.

What stands out to me in this report is Roku’s guidance for continued double digit platform revenue growth and expanding margins in 2026, anchored by AI driven ad tools and premium subscription bundles. That ties directly into the core catalyst of deeper monetization of its large user base. At the same time, the company’s push into bundles and services like Howdy sits squarely against risks around content fragmentation and increasingly aggressive competitors.

But even with Roku’s first full year of profit, investors should still weigh how reliant the story is on ad spending holding up and rivals not tightening their grip...

Roku's narrative projects $6.1 billion revenue and $372.1 million earnings by 2028.

Uncover how Roku's forecasts yield a $115.48 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Before this earnings beat, the most bullish analysts were already assuming Roku could reach about US$6.5 billion in revenue and roughly US$686 million in earnings within a few years, which is far more optimistic than the baseline view tied to steadier double digit growth. For you as a shareholder, this latest platform driven quarter could either support that stronger narrative or expose how much those expectations depend on assumptions about data driven ad monetization and regulatory risks that may need to be revisited.

Explore 12 other fair value estimates on Roku - why the stock might be worth 5% less than the current price!

Build Your Own Roku Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Roku research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Roku research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Roku's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.