The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 106.8x | 20.8x | Bottom tier | |
Growth | 89 | 16.8% | 6.1% | Top tier | |
Quality | 71 | 7.6% | 6.6% | Top tier | |
Safety | 92 | — | 0.7x | Top tier | |
Capital Return | 71 | — | 2.02% | Top tier | |
Momentum | 93 | 43.0% | 4.1% | Top tier | |
Sentiment | 39 | 15 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Roku, Inc. is a leading global digital video streaming company, operating an integrated platform that combines hardware and software to enable users to access thousands of streaming channels. The company generates revenue from two main segments: the Platform segment, which generates revenue from digital advertising, premium subscription sales, and operating system licensing; and the Devices segment, which includes the sale of streaming devices and its own branded smart TVs. The growth strategy relies on expanding the active user base to increase advertising revenue and facilitate subscriptions through its interactive interface.
During the first quarter of fiscal year 2026, Roku, Inc. achieved strong financial results, with total revenue reaching $1.2 billion, gross profit of $564.9 million, and net income of $85.7 million, equivalent to earnings per share of $0.57. The Platform segment led this performance with robust year-over-year growth of 28%, driven by a 27% increase in advertising revenue and a 30% growth in subscription revenue, while the EBITDA margin doubled to nearly 12%, generating $148 million in free cash flow with a margin of approximately 16%.
Roku, Inc. shares are currently trading within a 52-week range of $77.64 to $148.88, placing the stock below the analysts' average price target of $152.33. The analyst consensus indicates a general recommendation of 'Buy', with the high end of analyst estimates at $185 and the low end at $100, reflecting Wall Street's optimism regarding Connected TV (CTV) advertising growth opportunities and the potential for an upcoming acquisition.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The company generated revenue of $1.2 billion and net income of $85.7 million, with earnings per share of $0.57. Platform segment revenue increased by 28% year-over-year, driven by 27% growth in advertising and 30% in subscriptions. The company also recorded free cash flow of $148 million, the second-highest level in its history, with a free cash flow margin of approximately 16%.
High memory prices negatively impact the margins of the company's Devices segment, where the segment's margin fell to negative 14% due to declining selling prices and rising costs. However, the Roku OS features low memory consumption compared to competitors, reducing the overall bill of materials cost. This distinction makes the company's operating system a more attractive option for original equipment manufacturers (OEMs) and commercial partners during inflationary times, reinforcing its long-term market share.
Roku, Inc. aims to be the most efficient platform in Connected TV advertising through open integration with major demand-side platforms such as Amazon DSP and The Trade Desk. The company recently expanded its partnership with Google DV360 to become the first streaming platform to participate in the 'Publisher Match' feature and support integrated YouTube data management. This programmatic approach currently contributes to executing the majority of video ad deliveries on the platform at accelerating growth rates.
Automated analysis for informational purposes only — not investment advice.
The 'Audi' service is an ad-free paid subscription streaming service owned by Roku, Inc., offered at a low and affordable price of $3 per month to target segments suffering from rising prices on other platforms and increasing ad loads. Data from research firm Antenna indicates that the service has already successfully attracted over 1 million subscribers. The service focuses on delivering high-quality content at low production costs, including unscripted shows like 'Roku Originals', with no current plans to produce high-budget dramatic works.
The recent optimism stems from reliable reports released in mid-June 2026 stating that the company is seriously exploring options for a potential sale or entering into a major media merger with strategic partners. Additionally, on June 6, 2026, Morgan Stanley raised its price target for the stock to $170 due to positive expectations for digital advertising segment growth. This news supports market sentiment and increases the likelihood of a stock price jump driven by acquisition opportunities.