# Roku (ROKU) Q3 2026 earnings

Results filed 2026-11-02 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/roku/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1428439/000162828026068877/0001628280-26-068877-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Roku's Q3 2026 total net revenue was $1.5 billion, up 24% YoY, with Platform revenue of $1.3 billion, up 23% YoY, net income of $183 million and Adjusted EBITDA of $249 million.

Roku had a strong third quarter. Total net revenue reached $1.5 billion, up 24% from a year ago. Advertising and Subscriptions each grew 23%, and Devices grew 33%. Net income was $183 million, up from $25 million a year earlier, as operating expenses fell 6% while gross profit rose 24%. Devices lost money because of elevated memory costs, but higher-margin advertising offset that loss.
Roku gave no financial outlook and held no earnings call because Fox Corporation has agreed to acquire it. Management says it remains on track for the second-half 2026 forecast in the proxy statement. It expects distribution costs for Roku TV models to be weighted toward Q4. The main risks are weak Devices margins from memory prices and uncertainty around the pending FOX deal.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total net revenue | $1.5 billion | up 24% YoY | GAAP |
| Net income | $183 million | up 639% from a year ago | GAAP |
| Diluted net income per share | $1.20 | up from $0.16 a year ago | GAAP |
| Total gross margin | 43.2% | (0.2)pts YoY | GAAP |
| Income from operations | 164,088 | up from 9,466 a year ago | GAAP |
| Operating cash flow (TTM) | $810,866 | up 78% YoY | GAAP |
| Free cash flow (TTM) | $796 million | up 80% YoY | non-GAAP |
| Adjusted EBITDA | $249 million | up 113% YoY | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Advertising revenue | $727 million | up 23% YoY |
| Subscriptions revenue | $581 million | up 23% YoY |
| Devices revenue | $194 million | up 33% YoY |
| Streaming Hours | 39.9 billion | up 9% YoY |

## Key takeaways

1. **Net income jumped to $183 million** Net income was $183 million, versus $24.8 million a year earlier. Total operating expenses fell 6% while total gross profit rose 24%.
2. **Advertising and Subscriptions both grew 23%** Advertising revenue was $727 million, its ninth consecutive quarter of double-digit growth. Subscriptions revenue was $581 million.
3. **Advertising margin expanded on programmatic mix** Advertising gross margin was 63.2%, up approximately 470 basis points YoY on a mix shift toward higher margin ad products. More than 80% of in-stream video ad impressions were delivered programmatically.
4. **Devices lost money on memory costs** Devices revenue rose 33% to $194 million, but gross margin was (25.1%) because of elevated memory costs. Total gross margin was 43.2%.
5. **Pending FOX deal means no outlook** With the pending acquisition by FOX, Roku will not host an earnings call or provide a financial outlook. It says it remains on track for the second half 2026 forecast in the proxy statement.

## Questions

**How did Roku perform in Q3 2026?** Total net revenue was $1.5 billion, up 24% YoY, and Platform revenue was $1.3 billion, up 23%. Net income was $183 million and Adjusted EBITDA was $249 million.
**Did Roku give guidance for the next quarter?** No. Because of the pending acquisition by FOX, Roku held no earnings call and provided no financial outlook. It said it remains on track for the second half 2026 forecast in the proxy statement.
**Why was the Devices gross margin negative?** Devices gross margin was (25.1%), driven primarily by elevated memory costs. Devices revenue still grew 33% YoY to $194 million.
**How profitable was Roku in Q3 compared with a year ago?** Net income was $183.3 million versus $24.8 million a year earlier, and diluted EPS was $1.20 versus $0.16. Income from operations was $164.1 million versus $9.5 million.
**What is Roku's free cash flow?** Trailing-twelve-month free cash flow (a non-GAAP measure) was $796 million, up 80% YoY. Trailing-twelve-month operating cash flow was $810.9 million.

## Slides and investor documents

- [Read letter](https://image.roku.com/bWFya2V0aW5n/3Q26-Shareholder-Letter.pdf) (Shareholder letter)