Roku delivered a strong third quarter, with over $1 billion in revenue and raising its full-year guidance amid robust growth in its core advertising and content distribution businesses. The streaming platform company reported total net revenue of $1.211 billion, a 14% increase year-over-year, with its high-margin Platform segment leading the charge.
The Platform business, which includes advertising and streaming services distribution, generated $1.065 billion in revenue, up 17% from the same period last year. Gross profit for the quarter reached $525 million, reflecting a 9% annual increase. Roku highlighted the continued strength in video advertising, which grew faster than the broader U.S. over-the-top (OTT) and digital ad markets. The company attributed this performance to deeper integrations with third-party demand-side platforms, rising programmatic ad transactions, and expanding use of its self-serve advertising tool, Roku Ads Manager.
Small and medium-sized businesses, along with performance marketers in direct-to-consumer e-commerce, mobile apps, and gaming, emerged as the fastest-growing advertiser groups on the platform. Roku also expanded partnerships with measurement and ad-tech providers to enhance campaign transparency and outcomes for advertisers. One notable example involved a home security brand that achieved significant reach and efficiency through a multi-format campaign combining in-stream video, pause ads, and prominent home screen placements.
On the content side, Roku continued to strengthen its position as a key distribution partner for streaming services. Growth in premium subscriptions and the recent acquisition of Frndly TV drove gains in streaming services distribution revenue. The company also launched Howdy, a new ad-free subscription video-on-demand (SVOD) service priced at $2.99 per month, featuring a library of nearly 10,000 hours of movies and TV series. Positioned as a complement to existing streaming subscriptions, Howdy aims to capture demand for affordable, high-quality, ad-free entertainment.
The Roku Channel solidified its leadership in free ad-supported streaming television, maintaining its rank as the second most-engaged app on the Roku platform in the U.S. and the third globally by reach. According to industry reports, the channel accounted for 6.2% of total U.S. TV streaming time in September and remains the most-watched FAST service nationwide. New channel launches featuring popular series like “The First 48,” “Shark Tank,” and “Law & Order” contributed to viewer growth, alongside original programming such as the unscripted series “Solo Traveling with Tracee Ellis Ross,” which earned a Critic’s Choice nomination and was renewed for a second season.
Roku also enhanced its user experience with AI-powered features, including conversational voice search, contextual content recommendations, and “Why to Watch” summaries on content detail pages. The Sports Experience, which aggregates live games and programming across services, saw strong engagement, particularly during NFL kickoff week, with visits to the NFL Zone more than tripling year-over-year. The feature recently expanded to Mexico.
On the hardware front, Roku maintained its dominance as the top-selling TV operating system in the U.S., Canada, and Mexico, with its OS present in over half of U.S. broadband households. Devices revenue was $146 million, down 5% year-over-year, with a gross loss of $23 million due to ongoing investment in user acquisition. New product launches included the Philips Roku TV with Ambilight technology and portable smart projectors from Aurzen and Vankyo, expanding Roku’s presence in innovative display categories.
Looking ahead, Roku provided upbeat guidance for the fourth quarter, projecting total net revenue of approximately $1.35 billion, representing 12% year-over-year growth. Platform revenue is expected to grow 15%, with gross margin around 52%. Adjusted EBITDA for the quarter is forecasted at $145 million. For the full year, Roku raised its Platform revenue outlook to $4.11 billion and Adjusted EBITDA to $395 million.
The company repurchased $50 million of its common stock during the quarter under a $400 million authorization, signaling confidence in its long-term trajectory. Roku leadership emphasized a clear path to sustained double-digit Platform revenue growth and expanding operating margins in 2026 and beyond, with a focus on increasing free cash flow per share.
With a growing ecosystem of content, advertising tools, and distribution partnerships, Roku appears well-positioned to capitalize on the ongoing shift of television viewing and ad spend to connected TV platforms. The combination of scale, innovation, and profitability marks a pivotal moment for the company as it strengthens its role at the center of the streaming economy.
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