Roku shares rise on strong fourth quarter earnings beat

Roku Inc (NASDAQ:ROKU) shares climbed astir 5% pursuing the company’s merchandise of 4th fourth 2025 results, which exceeded Wall Street expectations and highlighted maturation successful its level business.

The institution reported gross of $1.395 cardinal for Q4, a 16% summation from the aforesaid play a twelvemonth earlier and supra expert forecasts of $1.35 billion.

Earnings per stock came successful astatine $0.53, astir treble the $0.29 expected by the Street.

For the afloat year, Roku posted full nett gross of $4.737 billion, up 15% twelvemonth implicit year, with level gross increasing 18% to $4.145 billion.

Gross nett roseate 15% to $2.074 billion, portion streaming hours accrued 15% to 145.6 billion.

During the year, Roku repurchased $150 cardinal of shares nether its $400 cardinal buyback program.

Looking ahead, the institution said it expects to prolong double-digit level gross maturation and further grow operating and nett income margins successful 2026 and beyond.

Wedbush analysts, who support an ‘Outperform’ standing connected Roku and a 12-month terms people of $140, highlighted the company’s “accelerating monetization with an underappreciated runway” and improving profitability.

The analysts wrote that Roku’s Q4 results and 2026 guidance show its “ability to thrust progressively profitable maturation for years to come,” citing high-teens gross growth, expanding EBITDA margins, rising escaped currency flow, and accelerated stock buybacks.

They besides noted the early-stage quality of Roku’s initiatives crossed advertizing products and level enhancements, saying this points to a agelong maturation runway. On the raised estimates, the analysts wrote, “with the OPEX basal present right-sized, and Platform gross projected to turn successful the treble digits, incremental margins are expanding rapidly.”

They added that Roku’s important nett operating losses should enactment arsenic a taxation shield, “ensuring that pre-tax income converts efficiently into distributable cash,” portion the company’s cleanable equilibrium expanse and improving liquidity enactment accelerated buybacks.