Streaming TV platform Roku (NASDAQ: ROKU) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 22.4% year on year to $1.25 billion. Guidance for next quarter’s revenue was better than expected at $1.3 billion at the midpoint, 1.2% above analysts’ estimates. Its non-GAAP profit of $0.57 per share was 64.4% above analysts’ consensus estimates.
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Roku (ROKU) Q1 CY2026 Highlights:
- Revenue: $1.25 billion vs analyst estimates of $1.20 billion (22.4% year-on-year growth, 3.7% beat)
- Adjusted EPS: $0.57 vs analyst estimates of $0.35 (64.4% beat)
- Adjusted EBITDA: $148.4 million vs analyst estimates of $131.2 million (11.9% margin, 13.1% beat)
- The company reconfirmed its revenue guidance for the full year of $5.5 billion at the midpoint
- EBITDA guidance for the full year is $675 million at the midpoint, above analyst estimates of $645.8 million
- Operating Margin: 4.1%, up from -5.7% in the same quarter last year
- Total Hours Streamed: 38.7 billion, up 2.9 billion year on year
- Market Capitalization: $17.18 billion
StockStory’s Take
Roku’s first quarter saw a positive market reaction, with management crediting the results to strong growth in both advertising and subscription revenue. CEO Anthony J. Wood highlighted that advertising revenue climbed 27% and subscription revenue grew 30%, supported by increased engagement from major sporting events like the Olympics and Super Bowl. The company emphasized the impact of its expanding third-party partnerships and the addition of high-profile content partners such as Apple TV and Peacock. Management also referenced significant operational leverage, with adjusted EBITDA margins nearly doubling year over year, underpinned by efficiency gains and the ongoing rollout of performance-oriented ad products.
Looking ahead, Roku’s guidance is driven by momentum in its platform business and a robust pipeline of new…