Roku (ROKU) Q4 2025 earnings summary

Executive summary

• Achieved record platform revenue growth of 18% year-over-year in 2025, surpassing $1.2 billion in Q4.

• Adjusted EBITDA reached $421 million for the year, with a margin expansion of 255 basis points.

• Net income for Q4 was $80 million, and free cash flow for the year was $484 million, more than doubling year-over-year.

• Strategic focus on platform monetization, advertising integration, and expanding premium subscriptions.

• Continued global expansion, with plans to surpass 100 million streaming households in 2026.

Financial highlights

• Q4 platform revenue grew over 18% year-over-year, exceeding $1.2 billion.

• Adjusted EBITDA for Q4 was $169 million; net income was $80 million, both record highs.

• Full-year Adjusted EBITDA reached $421 million, with free cash flow at $484 million, up over 100% year-over-year.

• Share buybacks totaled $150 million in 2025, achieving near 0% dilution in Q4.

Outlook and guidance

• Q1 2026 platform revenue expected to grow over 21% year-over-year; full-year guidance is 18% growth.

• Full-year Adjusted EBITDA guidance of $635 million, representing over 50% year-over-year growth and margin expansion to 11.6%.

• Free cash flow projected to outpace Adjusted EBITDA, with a path to $1 billion by 2028.

• Platform gross margin expected to remain stable at 51%-52% throughout 2026.

• OPEX growth guided to mid-single digits, with continued investment in engineering and product initiatives.