ROKU Nasdaq Russell 1000 Earnings call
Roku, Inc. (ROKU) · Q1 2026 results and valuation
Share price: $160.52 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 30 Apr 2026 and 12 Feb 2026
Net income up 6.5% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+6.5%
Net income vs Q4 2025
Outlook given
Net income 85.7M vs 80.5M
Revenue −10.5%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: upbeat, and more positive than the script.
Similar to last call.
3 · What stood out
Key theme
A redesigned home screen is rolling out to all users, representing a major change aimed at satisfying nearly all customers.
Valuation
Is Roku, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 14.9% growth a year (3-year revenue growth), the model's fair value is $126.77 a share — the stock trades 27% above it. Today's price assumes 18.5% growth a year.
Current price
$160.52
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.5% for 10 yrs
Fair value / share
$126.77
Buy below
$95.08
Price vs fair value
Overvalued 27%
Price vs buy-below price
Overvalued 69%
Read between the lines
-
Guidance
Updated partnerships are expected to impact second-half sales.
Source quote
“We expect to see the impact of updated partnerships in second-half sales.”
-
Figure
Advertising revenue grew 27% as a result of the company's third-party partnership strategy.
Source quote
“For example, advertising revenue grew 27%, and our third-party partnership strategy is working.”
-
Fading
The company expects to sustain double-digit platform revenue growth while growing profitability as it looks toward 2026 and beyond.
Source quote
“Looking ahead to 2026 and beyond, we're confident in our ability to sustain double-digit platform revenue growth while continuing to grow... and globally. So with that introduction, let me turn it over to Dan.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“In our products and platform, we use AI to improve discovery and increase engagement, improve advertising performance, and unlock new monetization opportunities.”
“Even if memory prices remain elevated beyond this year, we are confident that strong platform revenue growth and our device and operational flexibility put us in a position to continue...”
“On AI, at the highest level, AI is a big opportunity for Roku, Inc.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-31 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.25B | 1.39B | −10.5% | 1.02B | +22.4% |
| Gross profit | 564.9M | 606.8M | −6.9% | 445.0M | +26.9% |
| Operating income | 51.8M | 66.0M | −21.5% | -57.7M | Turned profit |
| Net income | 85.7M | 80.5M | +6.5% | -27.4M | Turned profit |
| EPS | 0.57 | 0.54 | +5.6% | -0.19 | Turned profit |
| P/E today 65.0 | 70.1 | 183.9 | −113.8 | 12-mo loss | — |
Topics
Most discussed now
- New Roku is also making app tiles more user-friendly—more likely to see the app they want near the top.
- New It is accelerating feature development and enhancing engineer productivity.
- Most connected TV platforms look similar; its home screen looks unique and more delightful, and Roku does not want to...
- Roku also uses AI across the company to drive operational efficiency and productivity.
- In its products and platform, Roku uses AI to improve discovery and increase engagement, improve advertising performance, and unlock new...
Faded since Q4 2025
- Dropped For full year, Roku also grew its platform revenue 18%, achieved adjusted EBITDA of $421 million, which represents a margin...
- Fading To retailers, TV OEMs are key strategic partners for it.
- Fading At regional and national retailers like Amazon, Roku has expanded its presence.
- Fading On the viewer experience, AI helps personalize and simplify how people find what to watch, which increases engagement.
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results · SEC 8-K
- Material agreement; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K