Roku stock jumps on upbeat 2026 revenue forecast as ads rebound and subscriptions hit records

San Jose, Calif., Feb 12, 2026, 13:58 (PST)

• Roku is now projecting $5.50 billion in revenue for 2026, beating what Wall Street had penciled in. Shares climbed in after-hours trading.
• The company is targeting platform revenue of $4.89 billion in 2026, which would mark an 18% increase, and it’s forecasting net income at $325 million.
• Roku reported its highest net adds for Premium Subscriptions in Q4, calling it the strongest quarter yet, and said it’s gearing up to introduce subscription bundles.

Roku is looking for a bounce in digital ad spending and a turn toward ad-supported streaming to drive growth, projecting 2026 revenue of $5.50 billion—well past the $5.34 billion analysts had penciled in, according to LSEG. Platform revenue, Roku said, should reach $4.89 billion, ahead of the $4.66 billion estimate. Shares jumped roughly 8% after hours on the news. 1

Right now, the focus is on outlook—connected TV ad dollars are up for grabs as brands pull money from linear TV, but that transition has been anything but steady. Investors are tracking if more streaming eyeballs actually lead to more consistent ad revenue.

Roku builds streaming devices and lets TV manufacturers use its operating system, but the real driver is the platform segment: ad dollars and distribution fees from streaming services. Those revenue streams typically yield fatter margins than selling hardware.

Roku posted a 16% revenue jump in the fourth quarter, hitting $1.3949 billion, the company said in its shareholder letter filed with the U.S. Securities and Exchange Commission. Net income came in at $80.5 million, reversing a loss from the prior year. Platform revenue was up 18% to $1.224 billion, with devices revenue inching 3% higher to $170.9 million. 2

Roku posted $4.737 billion in revenue for 2025, a 15% jump, and swung to $88.4 million in net income after its loss in 2024, according to the filing. “We delivered excellent results in 2025, driven by consistent execution and the differentiation of our leading TV streaming platform,” wrote founder and CEO Anthony Wood, with CFO and COO Dan Jedda also signing the letter.

Roku forecast first-quarter 2026 revenue at $1.2 billion and net income of $50 million. Adjusted EBITDA is pegged at $130 million, excluding interest, taxes, depreciation, and amortization. For the full year 2026, Roku is looking at $325 million in net income, adjusted EBITDA of $635 million, and expects total gross profit to hit $2.435 billion.

One standout for the quarter: subscription distribution. Roku credited its Premium Subscriptions and the Frndly TV deal for the bump in Q4 streaming services, calling it the company’s biggest quarter yet for Premium Subscriptions net adds. Holiday promos and tweaks to its product nudged more users to sign up directly via Roku’s interface. https://www.imdb.com/news/ni65705265/?ref_=nwc_art_perm 3

Roku has expanded Premium Subscriptions in Mexico, bringing the total to 13 partners so far and signaling that more launches are on deck. The company’s eyeing additional “tier-one” partners for 2026. Bundles under Premium Subscriptions are slated to arrive later this year. Roku also pointed to the 2026 FIFA World Cup as a potential boost for subscriptions in the Mexican market.

Advertising is still the main focus. Roku reported over 90 million global streaming households with accounts and expects to hit 100 million by 2026. Streaming hours climbed 15% in 2025, hitting 145.6 billion. The company pointed to Nielsen’s “The Gauge” report, which tracks TV habits, noting The Roku Channel captured 6.3% of U.S. TV streaming in December—up from 4.6% a year ago—and now stands as the second-largest free ad-supported streaming app after YouTube.

Roku faces off against larger platforms and device ecosystems that have a say in what gets featured on the home screen. To push further into programmatic ad buying, the company says it’s tightened integrations with demand-side platforms like The Trade Desk and Amazon DSP.

Still, hardware continues to weigh on results. Devices posted a negative 23% gross margin last quarter, Roku said. Looking ahead to 2026, the company expects device margins to stick in the negative mid-teens—even as it rolls out more Roku-branded TVs and widens its retail footprint.

Analysts had pegged revenue at roughly $1.35 billion and projected adjusted earnings of $0.29 a share, according to a StockStory note on Yahoo Finance. Roku ended up beating those marks on both results and guidance. https://finance.yahoo.com/news/roku-roku-report-earnings-tomorrow-030532764.html 4

According to the filing, Roku plans to hold its conference call to go over the quarter at 2 p.m. Pacific time.