Roku ROKU is entering a stronger phase of its turnaround as improving margins and disciplined execution reshape expectations for its performance. In the third quarter of 2025, platform revenues grew 17% year over year, gross profit increased to $525 million and adjusted EBITDA rose 19%. Platform gross margin reached 51.5%, supported by healthier advertising demand, stronger subscription activity and more efficient monetisation across its connected-TV ecosystem.
Roku’s expectations for the rest of 2025 remain constructive. Fourth-quarter revenues are projected at $1.35 billion, up 12% year over year, with platform revenues expected to grow 15% and platform gross margin at 52%. Full-year projections include $4.11 billion in platform revenue and $395 million in adjusted EBITDA. The Zacks Consensus Estimate pegs fourth-quarter EPS at 28 cents, up 6 cents over the past 30 days and implying 216.67% growth. These trends reinforce confidence that ROKU’s margin improvements are transitioning into a more durable profitability cycle.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Market Leadership Positions Platform for Sustained Growth
ROKU remains the number one selling TV operating system in the United States, Canada and Mexico, and its U.S. TV unit share continues to exceed the combined share of the second- and third-largest TV operating systems. With streaming devices in more than half of U.S. broadband households, this scale creates a widening competitive moat. The Zacks consensus estimate for fourth-quarter streaming hours is pegged at 38.77 billion, indicating 13.7% year-over-year growth, signalling solid engagement heading into 2026.
The Roku Channel (aff)’s position as the second most-engaged app on the platform amplifies this advantage. Nearly 90% of engagement comes through platform entry points, making improvements in recommendations and UI placement directly accretive to advertising and subscription revenues.