ROKU INC

13. INCOME TAXES

Income tax expense was $4.1 million and $3.2 million for the three months ended September 30, 2024 and 2023, respectively. The increase in income tax expense for the three months ended September 30, 2024 is primarily attributable to an increase in U.S. income tax liability.

Income tax benefit was $0.2 million and income tax expense was $8.4 million for the nine months ended September 30, 2024 and 2023, respectively. The increase in income tax benefit is primarily attributable to the release of the valuation allowance on certain foreign deferred tax assets, which are expected to be utilized based on future forecasted income.

A valuation allowance must be established for deferred tax assets when it is more likely than not that they will not be realized. As of September 30, 2024, the Company analyzed all available objective evidence, both positive and negative, and believes it is more-likely-than-not that some deferred tax assets will not be realizable. Accordingly, the Company has provided a valuation allowance against its U.S. deferred tax assets.