Roku posts record quarterly profit as revenue climbs 22%

Roku reported record quarterly profit in the second quarter of 2026 as revenue rose 22%, with the streaming platform topping Wall Street expectations ahead of its planned acquisition by Fox Corp.

The company posted revenue of $1.35 billion, compared with $1.3 billion expected by analysts. Net income reached a quarterly record of $164.2 million, up from $10.5 million a year earlier, while diluted earnings were $1.08 per share, roughly twice analysts’ expectations.

The results marked Roku’s fifth consecutive profitable quarter. Free cash flow totaled a record $704 million for the 12 months ended in the quarter.

Platform revenue increased 25% to $1.22 billion. Advertising revenue rose 25% to $673 million, while subscription revenue increased 26% to $548 million. The platform segment posted a 53% gross margin.

Viewers streamed 37.9 billion hours across Roku platforms during the quarter, up 7% from a year earlier. Roku said its services reach more than 100 million households.

The earnings report is Roku’s first since Fox announced in June 2026 that it would acquire the company in a deal valued at about $22 billion. Because of the pending transaction, Roku did not hold an earnings call or issue updated financial guidance.

“We believe our scale, platform strategy, and financial strength position Roku to continue leading the evolution of TV streaming while delivering sustainable, long-term growth,” Roku founder, chairman and CEO Anthony Wood and CFO and COO Dan Jedda wrote in a shareholder letter.

Wood and Jedda said the Fox transaction would allow Roku to expand more quickly and increase investment in products for viewers, content partners and advertisers.

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Under the agreement, Fox will pay $96 per Roku share in cash, representing about $14.2 billion, along with 0.9693 shares of Fox Class A common stock for each Roku Class A and Class B share. Fox shareholders are expected to own about 73% of the combined company, with Roku shareholders owning about 27%.

The transaction is expected to close during the first half of 2027. Wood is expected to remain involved with the combined company and join Fox’s board.

Fox has said it intends to continue operating Roku as an open platform and maintain broad distribution of Fox programming across other services.

Roku also pointed to changes to its home screen as part of its effort to increase engagement and advertising opportunities. The company began rolling out the redesigned interface in May and completed the U.S. rollout early in the third quarter.

Roku said early results indicate the new home screen has improved household retention, potentially lowering the cost of adding and retaining streaming households.

Before the Fox deal was announced, Roku raised its 2026 outlook in April, projecting adjusted EBITDA of $675 million and net income of $360 million. It also forecast Platform revenue of about $5 billion and Devices revenue of $535 million, putting total annual revenue at roughly $5.5 billion.