Roku, Inc (ROKU) AI Stock Analysis

Roku, Inc. operates a TV streaming platform divided into two primary segments: Platform and Player. Its platform enables users to discover and access movies, TV shows, live broadcasts, news, and sports, reaching 60.1 million active accounts as of December 31, 2021. Beyond streaming, Roku provides digital and video advertising, content distribution, subscription and billing solutions, commerce transactions, and brand sponsorships. The company also manufactures, sells, and licenses smart TVs under the Roku TV brand, alongside branded streaming players, audio products, and accessories across the United States, Canada, Europe, and Latin America.

Roku expanded annual revenue from $2.76B in FY2021 to $4.74B in FY2025, reflecting a 5-year revenue CAGR of 21.6%. After net losses of -$498.0M in FY2022, -$709.6M in FY2023, and -$129.4M in FY2024, the company returned to annual profitability with net income of $88.4M and EPS of $0.57 in FY2025. Gross margin was 43.8% in FY2025 compared to 51.0% in FY2021. For the trailing twelve months ending June 30, 2026, revenue stood at $5.21B with a profit margin of 6.8%. In the latest quarter ended June 30, 2026, quarterly revenue grew 21.9% year-over-year while quarterly earnings grew 1442.9%.

As of June 30, 2026, Roku reported $2.56B in cash and short-term investments alongside $474.1M in total debt, resulting in net cash of $2.08B. Shareholders' equity was $2.82B, yielding a debt-to-equity ratio of 0.17 and a current ratio of 2.87. Operating cash flow improved to $483.7M in FY2025, supporting free cash flow of $478.4M against capital expenditures of $5.3M. In FY2025, Roku allocated $150.0M to share buybacks, while share count increased 7.1% over five years.

At a last close of $154.54, Roku has a market cap of $22.94B and an enterprise value of $20.71B. The stock trades at a trailing P/E of 65.8x and a forward P/E of 39.1x, well above the median of its US-listed Communication Services peers at 16.2x trailing and 14.1x forward. Its price-to-sales ratio of 4.4x also exceeds the peer median of 0.8x, while EV/EBITDA stands at 28.3x compared to the peer median of 10.0x. Over the past year, Roku returned 62.1%, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of -52.4% trails the benchmark's 83.0% gain.

Wall Street coverage consists of 6 Strong Buy, 1 Buy, and 20 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $162.33 sits 5.0% above the last close of $154.54. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $5.63B and EPS of $2.98, representing 392.3% EPS growth. Roku has beaten EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for October 29, 2026.

This page is an AI-written research summary of Roku, Inc (ROKU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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