Roku reported second-quarter revenue of $1.35 billion, up 22 percent year-over-year and ahead of consensus estimates of $1.3 billion. Net income reached $164.2 million, a 1,464 percent increase year-over-year and more than 80 percent above the $90.4 million estimate.
The streaming platform operator's free cash flow totaled $704.1 million, crushing the $188 million estimate and rising 80 percent from the year-ago period. EBITDA came in at $254.3 million against an estimate of $171 million, a 225 percent year-over-year jump. Earnings per share were $1.08.
Roku's platform segment, which includes advertising revenue from its owned channels and third-party publishers, generated $1.2 billion in net revenue with 25 percent year-over-year growth. The devices segment, which includes sales of Roku hardware, posted $133.7 million, down 1 percent year-over-year. Total gross profit expanded to $673.7 million, up 35 percent from the prior year.
Gross margins widened across both segments. Platform gross margin expanded to 53.0 percent from 51.0 percent a year earlier. Total company gross margin reached 49.7 percent, a gain of 4.9 percentage points. Streaming hours on the Roku platform totaled 37.9 billion, up 7 percent year-over-year.
Roku is pending acquisition by Fox Corporation, announced in June 2026, with the deal expected to close in the first half of 2027. The company has faced sustained pressure from larger streaming competitors and advertising slowdowns that have weighed on growth across the sector.
Roku beat consensus on all four main metrics, revenue, net income, EBITDA, and free cash flow. The spread between Roku's net income result and its estimate was $73.8 million, compared to a $50 million revenue beat. Free cash flow exceeded its estimate by a factor of 3.7.
The timing of the results comes as Fox's $8.65 billion acquisition of Roku faces ongoing regulatory review. The deal's close in H1 2027 remains contingent on regulatory approval and other customary closing conditions.
