Roku’s FY 2025 results reset the profit story

Roku (ROKU) closed out FY 2025 with Q4 revenue of about US$1.4 billion and basic EPS of US$0.54, capping a year in which trailing twelve month revenue reached roughly US$4.7 billion and EPS landed at US$0.60. The company has seen quarterly revenue move from US$1.20 billion in Q4 2024 to US$1.39 billion in Q4 2025, while basic EPS shifted from a loss of US$0.24 to a profit of US$0.54. This gives investors a clearer view of how margins are now feeding through to the bottom line.

See our full analysis for Roku.

With the latest numbers on the table, the next step is to see how this turn in profitability lines up with the big narratives around Roku’s growth, competitive position, and long term margin potential.

Four-quarter swing to US$88 million profit

• On a trailing 12 month basis, Roku moved from a net loss of US$129.4 million at Q4 2024 to net income of US$88.4 million by Q4 2025, with quarterly net income going from a loss of US$35.5 million in Q4 2024 to a profit of US$80.5 million in Q4 2025.
• Bulls point to this profitability shift as the foundation for future earnings growth, and the recent numbers give them specific support as well as some checks:
  • Consensus narrative expects earnings to expand from a loss of US$61.5 million to US$372.1 million by around 2028, and the move to US$88.4 million of trailing profit shows the company has already crossed the break-even line the narratives were written around.
  • At the same time, the five year earnings trend was described as averaging a 21.4% annual decline, so this quick flip to profit is a sharp change in pattern that bullish investors still need to see hold over more than one year.

Revenue up to US$4.7b, growth forecasts at 10.6%

• Trailing 12 month revenue reached about US$4.7b at Q4 2025, compared with US$4.1b a year earlier, and analysts are forecasting around 10.6% revenue growth per year over the next three years, which is slightly above the 10.3% figure given for the broader US market.
• Supporters of the bullish view see this revenue base and forecast growth as the starting point for stronger long term upside, but the forecast ranges show why expectations differ:
  • Bullish analysts are using an 11.4% annual revenue growth path to reach about US$6.1b by 2028, while bearish analysts anchor their view on roughly 10.0% annual growth to about US$5.9b, which is not a huge gap versus the 10.6% figure cited in the risk and reward summary.
  • Because the spread between these growth assumptions is relatively modest, a lot of the disagreement between bulls and bears comes down to what earnings margin they attach to that revenue and what P/E multiple they think the market will pay for it.

Have a closer look at how bullish investors frame this growth story and where the upside case could be challenged or strengthened. 🐂 Roku Bull Case

Profitability reset meets mixed valuation signals

• Roku’s P/S multiple of 2.8x sits below the 3.9x peer average but above the 1.4x US Entertainment industry average, while the current share price of US$90.06 is well below both the analyst price target of US$124.92 and the DCF fair value of about US$190.41 given in the analysis.
• Bears argue that heavy reliance on digital ad revenue and intense competition justify caution even with the recent profit, and the current numbers give them several angles to lean on:
  • The company only recently turned profitable, with trailing EPS moving from a loss of US$0.89 at Q4 2024 to a profit of US$0.60 at Q4 2025, so there is no long record of positive earnings yet to test how those P/S and price target gaps might close over time.
  • On top of that, the valuation data show Roku trading richer than the broader Entertainment industry on P/S, which fits the bearish view that the market is already paying a premium for its growth profile even though the profit history is short and still tied closely to conditions in the digital ad market.

If you want to see how skeptics reconcile this fresh profitability with those mixed valuation markers, the cautious case is laid out in detail here. 🐻 Roku Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Roku on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If this data points you in another direction, shape your own take in a few minutes and share it with others: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Roku.

See What Else Is Out There

Roku’s recent profit is still new, with a short earnings record, mixed valuation signals, and exposure to swings in digital ad spending.

If that leaves you wanting steadier prospects, take a few minutes to run through our 85 resilient stocks with low risk scores and spot companies that aim for more resilient performance.

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.