Roku’s “outstanding” quarter, aided by strong political ad spending, sends shares soaring
Roku’s stock surged 14% in after-hours trading Thursday, after the streaming giant posted a smaller-than-expected Q4 loss of $0.24 per share, beating analysts’ expected $0.41 loss. Revenue rose 22% year over year to $1.2 billion, ahead of Wall Street’s $1.15 billion estimate, per Barron’s.
The earnings beat was driven by Roku’s main revenue generator, its platform business — consisting of ad sales and streaming subscriptions — which crossed the $1 billion mark for the first time in Q4, up 25% from the previous year.
The company had an “outstanding advertising quarter,” according to CEO Anthony Wood, fueled by strong political ad spending during the election cycle as well as expanding partnerships with small and midsize businesses. In Q4, Roku’s ad business outperformed both the overall ad market and the OTT ad market in the US, the company said.
Streaming subscription revenue also climbed, with Roku reaching nearly 90 million global households and approximately 145 million people in the US, which represents more than half of the nation’s broadband households.
Once a pandemic darling as people flocked to its streaming services during lockdowns, Roku has reported quarterly losses since 2022 — yet in yesterday’s letter to shareholders, the company said it expects to deliver positive operating income for 2026.
The earnings beat was driven by Roku’s main revenue generator, its platform business — consisting of ad sales and streaming subscriptions — which crossed the $1 billion mark for the first time in Q4, up 25% from the previous year.
The company had an “outstanding advertising quarter,” according to CEO Anthony Wood, fueled by strong political ad spending during the election cycle as well as expanding partnerships with small and midsize businesses. In Q4, Roku’s ad business outperformed both the overall ad market and the OTT ad market in the US, the company said.
Streaming subscription revenue also climbed, with Roku reaching nearly 90 million global households and approximately 145 million people in the US, which represents more than half of the nation’s broadband households.
Once a pandemic darling as people flocked to its streaming services during lockdowns, Roku has reported quarterly losses since 2022 — yet in yesterday’s letter to shareholders, the company said it expects to deliver positive operating income for 2026.
