Sales Up 22%, Breaks Out Ad and Subscriptions Results

Roku, the popular streaming platform, has exceeded Wall Street’s expectations for the first quarter of 2026 and has raised its full-year profit guidance. This success comes as the company continues to thrive in the competitive streaming-video market.

One of the key highlights of Roku’s latest earnings report is the introduction of reporting results for its advertising and subscriptions operating units within its Platform segment. This move provides investors with greater insight into the company’s overall performance. Notably, Q1 saw a record number of premium subscription sign-ups, marking it as the highest quarter for such sign-ups to date.

The company, headquartered in San Jose, California, reported a revenue of $1.248 billion for Q1, a 22% increase year over year. Roku also reported a net income of $85.7 million (or 57 cents per diluted share), a significant improvement from the net loss of $27.4 million in Q1 2025. Adjusted EBITDA for the quarter surged by 165% to $148.4 million.

Roku’s founders and executives, Anthony Wood and Dan Jedda, expressed confidence in their monetization strategies and projected sustained double-digit growth in the Platform segment. They anticipate achieving $1 billion in Free Cash Flow by 2028, if not earlier.

Following the earnings report, Roku’s stock rose by more than 11% in after-hours trading, indicating investor optimism in the company’s performance. Earlier in the month, Roku announced that it had surpassed 100 million streaming households globally, further solidifying its position in the streaming market.

Looking ahead, Roku has raised its adjusted EBITDA outlook for the full year to $675 million and expects Platform revenue to grow by nearly 21% to reach $5.0 billion. Devices revenue is projected to reach $535 million, bringing total net revenue to around $5.5 billion, a 16% increase from 2025.

Roku’s results demonstrate its competitiveness against tech giants like Amazon, Google, Apple, and Samsung in the connected-TV space. In Q1, the Platform segment, which includes ad sales and revenue from subscription partners, saw a revenue increase of 28%, with advertising revenue growing by 27% and subscriptions revenue by 30%.

On the other hand, the Devices business, considered a loss leader for the Platform segment, experienced a decline in revenue due to lower player unit sales and promotional pricing. Despite this, Roku remains optimistic about its future performance and expects continued growth in the coming quarters.

In addition to its financial success, Roku recently announced a partnership with the CW Network to bring CW programming to the Roku Channel for next-day streaming starting in the fall of 2026. This collaboration will include popular series like “Private Eyes West Coast” and “Police 24/7,” as well as game shows such as “Scrabble” and “Trivial Pursuit.” Furthermore, new episodes of “WWE NXT” will be available to stream on the Roku Channel every Wednesday following their live broadcast on the CW.

Overall, Roku’s strong performance in Q1 and its strategic partnerships position the company for continued growth and success in the evolving streaming landscape.