Roku Inc. ROKU has seen its shares surge approximately 22.5% over the past year, outperforming the broader Zacks Consumer Discretionary sector and the Zacks Broadcast Radio and Television industry. This reflects growing investor confidence in the streaming platform's long-term strategic trajectory.
The momentum stems from a historic turn to full-year profitability, robust fourth-quarter 2025 results and upbeat forward-looking guidance that points to sustained double-digit growth ahead. With the company entering 2026 from a position of considerable strength, here are three compelling reasons to consider buying ROKU today.
Roku’s 1 Year Performance
Breakthrough Profitability Marks a Turning Point
Roku's most compelling investment argument is its decisive pivot to sustainable profitability. For full-year 2025, the company posted net income of $88 million, its first annual profit in recent memory. In the fourth quarter alone, net income reached a record $80.5 million, a dramatic reversal from a net loss of $35.5 million in the year-ago period. Platform revenues, the higher-margin engine of the business, grew 18% to $4.15 billion for the full year, while total net revenues climbed 15% to $4.74 billion. Adjusted EBITDA for fiscal 2025 came in at $421 million, marking a margin expansion of 255 basis points. Free cash flow surged more than 100% year over year to $484 million, a company record that underscores strong operational discipline. Roku also repurchased $150 million of its own stock in 2025, achieving near-zero dilution in the fourth quarter.
Robust 2026 Guidance Signals Continued Momentum
Management's forward-looking guidance for 2026, issued alongside fourth-quarter results in February 2026, adds significant conviction to the bull case. Roku projects full-year 2026 total net revenues of $5.5 billion, up 16% year over year, with platform revenues expected to grow 18% to $4.89 billion at margins of 51-52%. Adjusted EBITDA is guided at $635 million, implying over 50%…