Roku Inc. reported its financial results for the first quarter of 2026, reflecting continued expansion in its streaming platform business alongside a decline in device sales. The company, which operates a leading streaming platform connecting users to entertainment options through its operating system and The Roku Channel, posted total net revenue of $1.25 billion for the period ended March 31, 2026. This figure represented a 22 percent increase from the same quarter in the prior year.
Platform revenue, which encompasses advertising and subscriptions, reached $1.13 billion, marking a 28 percent year-over-year rise. Within this category, advertising revenue amounted to $613 million, up 27 percent from the first quarter of 2025. Subscription revenue totaled $519 million, an increase of 30 percent year over year, though growth excluding the impact of the Frndly acquisition stood at 23 percent. Devices revenue, derived from the sale of Roku players, Roku TVs, and related hardware, fell 16 percent to $118 million. Overall gross profit for the quarter came in at $565 million, a 27 percent gain compared to the prior-year period. Platform gross margin stood at 51.6 percent, with advertising at 60.5 percent and subscriptions at 41.1 percent. Devices recorded a negative gross margin of 16.3 percent.
The company achieved net income of $86 million for the quarter, a shift from prior periods of net losses. Adjusted earnings before interest, taxes, depreciation, and amortization reached $148 million, reflecting a 165 percent increase year over year. Roku also generated positive free cash flow on a trailing twelve-month basis, achieving an all-time high for the metric. During the quarter, the company repurchased $100 million of its common stock as part of an ongoing $400 million share repurchase program initiated in the third quarter of 2025.
User engagement metrics showed steady growth. Worldwide streaming hours on the Roku platform totaled 38.7 billion, an 8 percent increase from the first quarter of 2025. The number of streaming households surpassed 100 million globally as of April 2026. The Roku Channel maintained its position as the second-most engaged app on the platform in the United States. The company noted that it remained the fastest-growing distributor of third-party billed subscriptions in the subscription video-on-demand category within the United States for the month of March 2026, based on available data that excludes indirect billing.
User engagement metrics showed steady growth. Worldwide streaming hours on the Roku platform totaled 38.7 billion, an 8 percent increase from the first quarter of 2025. The number of streaming households surpassed 100 million globally as of April 2026. The Roku Channel maintained its position as the second-most engaged app on the platform in the United States. The company noted that it remained the fastest-growing distributor of third-party billed subscriptions in the subscription video-on-demand category within the United States for the month of March 2026, based on available data that excludes indirect billing.
On the devices side, Roku TV operating system-powered units drove more than 100 million streaming households worldwide. Roku-branded TV sales increased year over year, supported by expanded availability through major retailers. The company continued to monitor supply chain dynamics, including memory cost pressures, while noting efficiency advantages in its operating system design. It also advanced licensing agreements with additional original equipment manufacturers to support future device volume.
Looking ahead, Roku provided guidance for the second quarter of 2026. Total net revenue is expected to reach approximately $1.3 billion, representing nearly 17 percent year-over-year growth. Platform revenue is projected to grow approximately 20 percent, while devices revenue is anticipated to decline in the high-single digits. Total gross profit is forecasted at $580 million, with adjusted EBITDA of $170 million. Platform gross margin is expected in the range of 51 percent to 52 percent, and devices gross margin in the negative 20 percent range.
For the full year 2026, the company raised its outlook. Platform revenue is now projected at nearly $5.0 billion, implying approximately 21 percent growth, with gross margin at the high end of the prior targeted range. Devices revenue is expected at approximately $535 million. Total net revenue is forecasted at $5.5 billion, with adjusted EBITDA of $675 million. Operating expenses are anticipated to grow in the mid-single digits year over year, with the increase weighted toward the second half. The company reaffirmed its long-term objective of reaching $1 billion in free cash flow by 2028 or earlier.
For the full year 2026, the company raised its outlook. Platform revenue is now projected at nearly $5.0 billion, implying approximately 21 percent growth, with gross margin at the high end of the prior targeted range. Devices revenue is expected at approximately $535 million. Total net revenue is forecasted at $5.5 billion, with adjusted EBITDA of $675 million. Operating expenses are anticipated to grow in the mid-single digits year over year, with the increase weighted toward the second half. The company reaffirmed its long-term objective of reaching $1 billion in free cash flow by 2028 or earlier.
Please add Cord Cutters News as a source for your Google News feed HERE. Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.