Resources For TV Channel Developers

San Jose-based streaming technology company Roku [ROKU] commands a significant portion of the connected TV market in the US. It earns money via its Roku platform, which involves high-margin services such as digital advertising, content distribution and its own streaming channels, as well as the manufacturing and distribution of streaming devices, connected TVs and smart home products. 

A favorite of Cathie Wood — and still a major holding in her ARK portfolio — ROKU stock had its heyday during the Covid-19 pandemic but has pulled back significantly since, although it still managed to outperform the market in 2025. With a mixed analyst outlook ahead of Q4 2025 earnings, OPTO examines the investment case for ROKU stock, plus what an increased focus on streaming could mean for the company. 

Platform Power

Roku continues to command a key portion of the streaming market in the US, but the company seems to be positioning itself to capture more. According to Nielsen’s ‘The Gauge’ report, in December 2025 over 21% of all US TV viewing took place on the Roku platform. The company’s free streaming service, The Roku Channel (aff), accounted for 3% of total TV usage, rising 45% year-over-year. 

Interestingly enough, Roku expanded its long-term strategic partnership with analytics firm Nielsen in December 2025, which involves using Roku’s data to provide advertisers with “a more accurate view of what audiences watch”. Given the key role advertising has in Roku’s business model, the benefits of this continued partnership are evident.

More surprising was the integration with Amazon [AMZN] Ads, an erstwhile competitor, announced in June 2025. The new tie-in provides advertisers with access to an estimated 80% of connected TV households in the US.

In its Q3 2025 results, announced on October 30, 2025, the company beat both bottom- and top-line estimates, recording revenue of $1.21bn and GAAP EPS of $0.16. Platform revenue made up the bulk of total revenue, growing 17%…