businessLIVE
Roku Reports Third-Quarter Sales Up 24% as Ad Spending Growth Hits Four-Year High
Roku reports third-quarter sales up 24% as ad spending growth hits a four-year high
Key points
- Platform segment revenue grew 23% to $1.3 billion, with advertising and subscriptions both up 23%.
- Devices revenue jumped 33% to $194 million, but the segment posted a $48.6 million operating loss driven by higher memory costs.
- Roku is not hosting an earnings call or providing financial guidance, citing the pending Fox acquisition.
Why it matters. The pending $22 billion Fox takeover, expected to close in the first half of calendar 2027, is the reason Roku is withholding an earnings call and guidance.
Roku beat Wall Street earnings expectations for the third quarter, with revenue rising 24% to $1.50 billion. Net income reached $183 million, more than seven times the year-earlier quarter, and gross profit was $649 million. Fox Corp. agreed on June 15 to buy Roku for $22 billion, with the deal expected to close in the first half of calendar 2027, and Roku is not holding an earnings call or giving guidance.
Latest updates
Roku Reports Third-Quarter Sales Up 24% as Ad Spending Growth Hits Four-Year High
Roku reported third-quarter sales that rose 24% from a year earlier, according to Variety. The company said advertising spending in media and entertainment grew at its fastest pace in four years. Roku's financial performance has strengthened ahead of its planned takeover by Fox Corp., which is expected to close next year. The results point to continued demand for advertising on streaming platforms. Further details on profit and guidance were not available in the source material.