Roku (ROKU)
NASDAQ:ROKU
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Roku
(NASDAQ:ROKU)
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Rating:64Neutral
Price Target:
$111.00
▲(7.43% Upside)
Action:ReiteratedDate:02/14/26
Score is driven primarily by improving fundamentals (notably strong and improving free cash flow, return to positive net income, and moderate leverage) and an upbeat earnings call with clear 2026 growth and profitability guidance. These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and unhelpful valuation signals from a highly negative P/E and no dividend yield data.
Positive Factors
Consistent positive free cash flow
Roku generated materially stronger operating cash flow and free cash flow in 2025 and has been FCF-positive since 2023. Durable FCF supports capital allocation (buybacks noted), funds reinvestment into ads/tech, and reduces reliance on external financing, increasing long-term financial flexibility.
Negative Factors
International monetization still nascent
Many international markets remain early in digital ad migration, producing uneven monetization. This limits near‑term revenue diversification and means meaningful international contribution will require multi‑quarter investments in sales, measurement and product localization before driving durable ad growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive free cash flow
Roku generated materially stronger operating cash flow and free cash flow in 2025 and has been FCF-positive since 2023. Durable FCF supports capital allocation (buybacks noted), funds reinvestment into ads/tech, and reduces reliance on external financing, increasing long-term financial flexibility.
Read all positive factors
Roku (ROKU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.23B
Dividend YieldN/A
Average Volume (3M)2.64M
Price to Earnings (P/E)180.7
Beta (1Y)2.22
Revenue Growth16.61%
EPS Growth83.98%
CountryUS
Employees3,340
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.53
Shares Outstanding130,717,710
10 Day Avg. Volume2,092,616
30 Day Avg. Volume2,635,605
Financial Highlights & Ratios
PEG Ratio-1.08
Price to Book (P/B)6.01
Price to Sales (P/S)3.37
P/FCF Ratio33.37
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit7.23
Enterprise Value/Ebitda56.95
Forecast
1Y Price Target
$127.78Price Target Upside23.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)2.16
Revenue Forecast (FY)$5.50B
Roku Business Overview & Revenue Model
Company Description
Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live TV, news spor...
How the Company Makes Money
Roku generates revenue primarily through its Platform business and secondarily through its Devices business. Platform revenue includes (1) advertising sales, where Roku sells video and display ad inventory across Roku properties such as the Roku h...
Roku Key Performance Indicators (KPIs)
Any
Active Accounts
Measures the number of user accounts actively engaging with Roku's platform, indicating growth in user base and potential for increased ad revenue.
Measures the number of user accounts actively engaging with Roku's platform, indicating growth in user base and potential for increased ad revenue.
Data provided by:
The Fly
The FlyRoku Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial achievements — double‑digit platform revenue growth (18%), record adjusted EBITDA and free cash flow, aggressive 2026 guidance for revenue and EBITDA expansion, improving monetization through Ads Manager and DSP integrations, and strategic distribution and cost actions. The primary risks highlighted were timing and visibility into H2 (political ad spend), early-stage ramps for third‑party DSP integrations and international monetization, and the need to scale new home‑screen ad formats and SMB advertising. Overall, the positives around profitability, cash generation, product momentum and clear guidance materially outweigh the manageable execution and timing uncertainties.Positive Updates
Strong Platform Revenue Growth
Platform revenue grew 18% for full year 2025 and platform revenue grew over 18% in Q4 2025, with Q4 platform revenue surpassing $1.2 billion.
Negative Updates
Retail Distribution Headwind — Walmart House TV Shift
Walmart is shifting its House brand TV to VIZIO OS, creating a retail distribution change; Roku is responding by broadening and diversifying distribution (Best Buy Pioneer Roku TVs, Target Hiro Roku TVs and expanded OEM deals) but expects impacts to take time and materialize more in H2 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Platform Revenue Growth
Platform revenue grew 18% for full year 2025 and platform revenue grew over 18% in Q4 2025, with Q4 platform revenue surpassing $1.2 billion.
Read all positive updates
Company Guidance
Roku guided to Q1 2026 platform revenue growth of over 21% and full‑year platform revenue growth of about 18%, with full‑year adjusted EBITDA of $635 million (over 50% YoY growth) and an EBITDA margin of 11.6% (≈+267 bps); platform gross margin is guided to ~51–52% (2025 finished at 52%), and management expects free cash flow to exceed adjusted EBITDA in 2026 with a path to >$1 billion FCF by the end of 2028. For context, 2025 results included platform revenue growth of 18% (Q4 platform revenue surpassed $1.2 billion), Q4 adjusted EBITDA of $169 million, full‑year adjusted EBITDA of $421 million (+255 bps), net income of $80 million, free cash flow of $484 million (>100% YoY), $150 million of buybacks executed (with $250 million remaining), near‑0% dilution in Q4, expected mid‑single‑digit OpEx growth, CapEx‑light operations, and a >$1 billion deferred tax asset to keep cash taxes low; management noted Q1 benefits from the Frndly acquisition and that last year’s Q1 comp was just under 17%.Roku Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.74B | 4.11B | 3.48B | 3.13B | 2.76B |
| Gross Profit | 2.07B | 1.81B | 1.52B | 1.44B | 1.41B |
| EBITDA | 334.98M | 219.86M | -362.87M | -148.61M | 408.78M |
| Net Income | 88.36M | -129.39M | -709.56M | -498.00M | 242.38M |
Balance Sheet | |||||
| Total Assets | 4.43B | 4.30B | 4.26B | 4.41B | 4.08B |
| Cash, Cash Equivalents and Short-Term Investments | 2.32B | 2.16B | 2.03B | 1.96B | 2.15B |
| Total Debt | 871.80M | 591.93M | 654.27M | 719.33M | 521.71M |
| Total Liabilities | 1.78B | 1.81B | 1.94B | 1.77B | 1.32B |
| Stockholders Equity | 2.66B | 2.49B | 2.33B | 2.65B | 2.77B |
Cash Flow | |||||
| Free Cash Flow | 478.44M | 212.98M | 173.24M | -149.90M | 188.04M |
| Operating Cash Flow | 483.72M | 218.04M | 255.86M | 11.79M | 228.08M |
| Investing Cash Flow | -782.37M | -25.06M | -92.62M | -201.70M | -176.82M |
| Financing Cash Flow | -280.10M | -89.20M | -61.24M | 8.36M | 1.00B |
Roku Technical Analysis
Positive
103.32
Price Trends
94.22
Positive
99.27
Positive
97.08
Positive
Market Momentum
2.19
Negative
66.30
Neutral
86.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROKU, the sentiment is Positive. The current price of 103.32 is above the 20-day moving average (MA) of 96.56, above the 50-day MA of 94.22, and above the 200-day MA of 97.08, indicating a bullish trend. The MACD of 2.19 indicates Negative momentum. The RSI at 66.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ROKU.
Roku Risk Analysis
Roku disclosed 65 risk factors in its most recent earnings report. Roku reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Roku Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $435.56B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
68 Neutral | $179.24B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
68 Neutral | $25.17B | 34.54 | 16.22% | 0.75% | 14.91% | 9.30% | |
64 Neutral | $15.23B | 180.68 | 3.40% | ― | 16.61% | 83.98% | |
62 Neutral | $67.93B | 98.11 | 2.05% | ― | -4.29% | ― | |
61 Neutral | $14.98B | 22.61 | 48.36% | 2.47% | 4.37% | -16.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
ROKU
Roku
106.54
47.15
79.39%
DIS
Walt Disney
102.59
18.51
22.01%
NFLX
Netflix
106.28
8.65
8.86%
FOXA
Fox
63.41
13.82
27.88%
WMG
Warner Music Group
29.05
0.52
1.82%
WBD
Warner Bros
27.37
19.12
231.76%
Roku Corporate Events
Business Operations and StrategyFinancial Disclosures
Roku Restructures Platform Into Advertising and Subscriptions Segments
Neutral
Apr 13, 2026
Roku said it will revise its reportable segments by splitting its existing Platform unit into separate Advertising and Subscriptions segments, aligning external reporting with how the chief executive now reviews the business. The Advertising segme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.