| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 64.5x | 17.7x | Bottom tier | |
Growth | 90 | 18.5% | 7.1% | Top tier | |
Quality | 78 | 7.4% | 4.5% | Top tier | |
Safety | 89 | — | 2.6x | Top tier | |
Capital Return | 71 | — | 2.16% | Top tier | |
Momentum | 97 | 61.1% | 2.1% | Top tier | |
Sentiment | 40 | 15 | 3 | Around median |
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 operates a connected-TV streaming ecosystem that combines its operating system, streaming players, and Roku- and Hero-branded televisions, alongside licensing the system to manufacturers such as TCL and Hisense. Most device volumes come from partner televisions, while a growing share of the economics is generated through the platform: advertising, premium subscriptions, the free ad-supported The Roku Channel, and the paid Audi service priced at $3 per month. The platform surpassed 100 million streaming households globally in the first quarter of fiscal 2026, with a presence in more than half of U.S. broadband households.
In the first quarter of fiscal 2026, Roku reported revenue of $1.2 billion, gross profit of $564.9 million, net income of $85.7 million, and earnings per share of $0.57; equivalent to a gross margin of approximately 47% and a net income margin of approximately 7% based on the reported figures. Platform revenue grew 28%, advertising 27%, and subscriptions 30%, while advertising gross margin exceeded 60% and subscription margin was slightly above 40%. In contrast, device revenue declined 16%, and the segment recorded a negative margin of 14% due to lower average streaming-player prices and higher memory costs.
Second-quarter fiscal 2026 results published on August 6, 2026 showed continued improvement, as total revenue rose 22% to $1 billion and earnings per share reached $1.08, compared with $0.07 in the comparable period, supported by a surge in platform revenue. On a trailing-twelve-month basis through fiscal 2026, revenue was $5.0 billion, gross profit was $2.2 billion, net income was $201.5 million, and earnings per share were approximately $1.33, compared with net income of $88.4 million and earnings per share of $0.59 in fiscal 2025.
The analyst consensus is "Buy," with an average target of $161.29 within a relatively wide range of $150 to $185; the average is slightly above the 52-week range high of $159.89, while the range low is $78.53. No reported price-to-earnings ratio is available, despite earnings per share of approximately $1.33 and net income of $201.5 million on a trailing-twelve-month basis, so the valuation is primarily based on continued platform growth and improving margins and cash flow. Second-quarter fiscal 2026 revenue growth of 22% supports this framework, but weaker outlook visibility after August 6, 2026 and pressures in devices and subscriptions justify the gap between the lowest and highest targets.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Roku generates revenue from advertising, subscriptions, and platform services, in addition to selling streaming players and Roku- and Hero-branded televisions. Platform revenue grew 28% in the first quarter of fiscal 2026, with advertising growing 27% and subscriptions 30%. Device revenue, however, declined 16% and recorded a negative margin of 14%, making the platform the clearest driver of growth and profitability. Most Roku TV device volumes come from manufacturing partners such as TCL and Hisense, rather than televisions sold directly by Roku.
Roku announced on August 6, 2026 that total revenue rose 22% to $1 billion in the second quarter of fiscal 2026. Earnings per share reached $1.08, compared with $0.07 in the comparable period. The performance was driven by a surge in platform revenue, after platform revenue had grown 28% in the first quarter of fiscal 2026. According to news on that date, the company did not provide further financial guidance because of the pending acquisition by Fox Corporation.
Advertising revenue grew 27% in the first quarter of fiscal 2026, and its gross margin reached more than 60%, an increase of over 400 basis points year over year. Integrations with Amazon DSP, The Trade Desk, Yahoo, FreeWheel, and Google DV360 allow advertisers to access Roku's inventory through the buying platforms they use, and the majority of video delivery now runs through third-party programmatic partners. Advertisers outside media and entertainment also represented approximately 30% of Roku Experience advertising revenue, the highest level recorded by the company. The redesigned home screen and the appearance of the marquee ad on first launch also support increased impressions, clicks, and monetization.
Automated analysis for informational purposes only — not investment advice.
Subscription revenue grew 30% in the first quarter of fiscal 2026, or 23% excluding the impact of the Friendly acquisition. Roku added Apple TV subscriptions in March 2026 and Peacock, alongside Paramount+, and also expanded premium subscriptions into Mexico. The Roku Channel represents more than 6% of U.S. streaming time and ranks second among apps on the platform, while Audi offers an ad-free service priced at $3 per month. However, premium-subscription growth pressured the mix, and management expects subscription gross margin to range between 41% and 42% for the rest of fiscal 2026.
Rising memory prices increased the cost of Roku devices and contributed, alongside lower average streaming-player prices, to a 16% decline in device revenue and a negative margin of 14% in the first quarter of fiscal 2026. Management said its fiscal 2026 outlook already included higher memory costs and that it had not changed its assumptions regarding device investment or units sold. In contrast, the Roku TV operating system uses less memory and storage than competing platforms, according to management, expanding the component-cost advantage for manufacturing partners. The portfolio of players, directly sold televisions, and partner televisions gives the company flexibility to adjust its device mix according to cost conditions.
The average analyst target is $161.29, with the highest target at $185 and the lowest at $150, while the 52-week range extends from $78.53 to $159.89. The stock has a "Buy" consensus, but the average target exceeds the 52-week range high by only a limited margin. No reported price-to-earnings ratio is available, despite net income of $201.5 million and earnings per share of approximately $1.33 on a trailing-twelve-month basis. Therefore, the sustainability of platform growth, advertising margins that exceeded 60%, and pressures in devices and subscriptions remain the most important variables for assessing the valuation.
