ROKU, INC
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
ROKU$160.52+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-01.
0001428439-25-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001628280-25-047808
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 108 current paragraphs.
71 unchanged; 34 reworded; 3 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Income Tax Expense (Benefit)
Current report
Income tax expense increased by $9.1 million during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily due to higher pre-tax book income, partially offset by the impact from the enactment of the One Big Beautiful Bill Act.
Current report
Income tax benefit increased by $5.4 million during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to the impact from the enactment of the One Big Beautiful Bill Act.
Removed paragraphs (3)
Previous report
Income Tax Benefit
Previous report
Income tax benefit decreased by $3.3 million during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to differences in tax benefit from the release of jurisdictional valuation allowances in each period.
Previous report
Income tax benefit increased by $14.5 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to U.S. current income tax benefit expected to be realized during the year from year-to-date losses and the differences in tax benefit from the release of jurisdictional valuation allowances in each period.
Reworded paragraphs (34)
Previous wording
Our two reportable segments are the platform segment and the devices segment. Platform revenue is generated from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our user interface (“UI”), and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of Premium Subscriptions, and the sale of branded app buttons on remote controls).
Current wording
Our two reportable segments are the platform segment and the devices segment. Platform revenue is generated from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our user interface (“UI”), and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of Premium Subscriptions, the sale of owned and operated subscription services, and the sale of branded app buttons on remote controls).
Previous wording
Our business is subject to risks related to the evolving macroeconomic environment, including the effects of increased volatility in financial markets, higher inflation and interest rates, potential economic slowdown or recession, geopolitical developments, changes in economic or government policies, including the unknown impact of tariffs, changing global regulations, and the overall uncertainty surrounding international trade relations. While we intend to remain vigilant in monitoring the impacts of these circumstances on our business and adapt accordingly, the effects of these macroeconomic factors on our business, results of operations, and financial condition remain largely uncertain; however, for the full year 2025, we expect our devices revenue and gross margin to be slightly down, mostly due to tariffs. See Item 1A, Risk Factors, and the Note Regarding Forward Looking Statements elsewhere in this Quarterly Report for additional details.
Current wording
Our business is subject to risks related to the evolving macroeconomic environment, including the effects of increased volatility in financial markets, higher inflation and interest rates, potential economic slowdown or recession, geopolitical developments, changes in economic or government policies, including the unknown impact of tariffs, changing global regulations, and the overall uncertainty surrounding international trade relations. While we intend to remain vigilant in monitoring the impacts of these circumstances on our business and adapt accordingly, the effects of these macroeconomic factors on our business, results of operations, and financial condition remain largely uncertain. See Item 1A, Risk Factors, and the Note Regarding Forward Looking Statements elsewhere in this Quarterly Report for additional details.
Previous wording
We streamed 35.4 billion and 30.1 billion hours during the three months ended June 30, 2025 and 2024, respectively, reflecting an increase of 17%.
Current wording
We streamed 36.5 billion and 32.0 billion hours during the three months ended September 30, 2025 and 2024, respectively, reflecting an increase of 14%.
Previous wording
We use Platform revenue as a primary metric to measure the performance of our business because it represents our ability to successfully monetize our platform. Platform revenue growth is one of our strategic priorities. Platform revenue was $975.5 million and $824.3 million for the three months ended June 30, 2025 and 2024, respectively.
Current wording
We use Platform revenue as a primary metric to measure the performance of our business because it represents our ability to successfully monetize our platform. Platform revenue growth is one of our strategic priorities. Platform revenue was $1,064.6 million and $908.2 million for the three months ended September 30, 2025 and 2024, respectively.
Previous wording
(1) The restructuring charges for the three months ended June 30, 2025 were not significant, and the restructuring charges for the six months ended June 30, 2025 primarily include asset impairment charges of $2.9 million and facilities exit costs of $0.2 million. Restructuring charges for the three and six months ended June 30, 2024 primarily include asset impairment charges of $10.7 million and $11.5 million, respectively.
Current wording
(1) The restructuring charges for the nine months ended September 30, 2025 primarily include asset impairment charges of $2.9 million. Restructuring charges for the three and nine months ended September 30, 2024 primarily include asset impairment charges of $17.6 million and $29.1 million, respectively.
Previous wording
Our Free Cash Flow was $392.0 million and $317.9 million for the TTM periods ended June 30, 2025 and 2024, respectively.
Current wording
Our Free Cash Flow was $443.0 million and $157.3 million for the TTM periods ended September 30, 2025 and 2024, respectively.
Previous wording
We generate platform revenue from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our UI, and related services), as well as streaming services distribution (including subscription and transaction revenue shares, the sale of Premium Subscriptions, and the sale of branded app buttons on remote controls). Our ad inventory includes video ad inventory from AVOD content in The Roku Channel, native display ads throughout the Roku Experience, as well as ad inventory we obtain through our streaming services distribution agreements with our content partners. To supplement supply, we purchase advertising inventory from our content partners, on an as needed basis. To date, we have generated most of our platform revenue in the United States.
Current wording
We generate platform revenue from the sale of digital advertising (including direct and programmatic video advertising, ads integrated into our UI, and related services), as well as streaming services distribution (including subscription and transaction revenue shares, the sale of Premium Subscriptions, the sale of owned and operated subscription services, and the sale of branded app buttons on remote controls). Our ad inventory primarily includes video ad inventory from AVOD content in The Roku Channel, native display ads throughout the Roku Experience, as well as ad inventory we obtain through our streaming services distribution agreements with our content partners. To supplement supply, we purchase advertising inventory from our content partners, on an as needed basis. To date, we have generated most of our platform revenue in the United States.
Previous wording
Other income, net primarily consists of interest income on cash and cash equivalents, foreign currency remeasurement, transaction gains and losses, andnet change in the fair value of our strategic investments.
Current wording
Other income, net primarily consists of interest income on cash and cash equivalents, short-term investments, foreign currency remeasurement, transaction gains and losses, andnet change in the fair value of our strategic investments.
Previous wording
Our income tax expense (benefit) consists primarily of income tax expense (benefit) in certain foreign jurisdictions where we conduct business and income tax expense (benefit) in the United States. We have a full valuation allowance against net deferred tax assets in the United States. We expect to maintain this valuation allowance for the foreseeable future.
Current wording
Our income tax expense (benefit) consists primarily of income tax expense in certain foreign jurisdictions where we conduct business and income tax expense (benefit) in the United States. We have a full valuation allowance against net deferred tax assets in the United States. We expect to maintain this valuation allowance for the foreseeable future.
Previous wording
Comparison of the Three and Six Months Ended June 30, 2025 and June 30, 2024
Current wording
Comparison of the Three and Nine Months Ended September 30, 2025 and September 30, 2024
Previous wording
Platform revenue increased by $151.1 million, or 18%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily due to higher advertising revenue despite continued weakness in the media and entertainment vertical. Additionally, revenue from streaming services distribution, specifically higher Premium Subscriptions revenue and subscription revenue from the acquisition of Frndly, contributed to the year over year increase in revenue. Frndly contributed approximately 1.8 points of growth in the three months ended June 30, 2025.
Current wording
Platform revenue increased by $156.5 million, or 17%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily due to higher revenue from streaming services distribution, specifically higher Premium Subscriptions revenue and higher subscription revenue from both third-party and our owned and operated subscription services, and higher advertising revenue, which grew despite continued weakness in the media and entertainment vertical.
Previous wording
Platform revenue increased by $277.0 million, or 18%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily due to higher revenue from streaming services distribution, specifically higher Premium Subscription revenue and subscription revenue from the acquisition of Frndly. In addition, advertising revenue increased despite continued weakness in the media and entertainment vertical.
Current wording
Platform revenue increased by $433.5 million, or 17%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily due to higher revenue from streaming services distribution, specifically higher Premium Subscription revenue and higher subscription revenue from both third-party and our owned and operated subscription services. In addition, advertising revenue increased despite continued weakness in the media and entertainment vertical.
Previous wording
Devices revenue decreased by $8.3 million, or 6%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The decrease was primarily due to lower revenue from streaming players. During the three months ended June 30, 2025, the average selling price of all devices shipped increased by 8% and the volume of all devices shipped decreased by 9% as compared to the three months ended June 30, 2024. The increase in average selling price is primarily due to a higher proportion of sales from Roku-branded TVs, which generally sell at higher prices compared to streaming players. The decrease in the volume of devices shipped was mainly due to lower sales of streaming players.
Current wording
Devices revenue decreased by $8.0 million, or 5%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was primarily due to lower revenue from streaming players. During the three months ended September 30, 2025, the average selling price of all devices shipped decreased by 6% and the volume of all devices shipped increased by 1% as compared to the three months ended September 30, 2024. The decrease in average selling price is primarily due to the mix of products sold.
Previous wording
Devices revenue increased by $5.0 million, or 2%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily due to higher revenue from Roku-branded TVs, partially offset by lower revenue from streaming players. During the six months ended June 30, 2025, the average selling price of all devices shipped increased by 3% and the volume of all devices shipped increased by 1% as compared to the six months ended June 30, 2024. The increase in average selling price was primarily due to a higher proportion of sales from Roku-branded TVs, which generally sell at higher prices compared to streaming players. The increase in the volume of devices shipped was mainly due to higher sales of Roku-branded TVs.
Current wording
Devices revenue decreased by $3.0 million, or 1%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The decrease was primarily due to lower revenue from streaming players. During the nine months ended September 30, 2025, the average selling price of all devices shipped increased by less than 1% and the volume of all devices shipped increased by 1% as compared to the nine months ended September 30, 2024.
Previous wording
The Cost of revenue, platform increased by $93.3 million, or 24%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily driven by higher costs of Premium Subscriptions, acquiring content, and acquiring advertising inventory.
Current wording
The Cost of revenue, platform increased by $100.5 million, or 24%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily driven by higher costs of Premium Subscriptions, acquiring content, and acquiring advertising inventory.
Previous wording
The Cost of revenue, platform increased by $149.3 million, or 20%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher costs of Premium Subscriptions, acquiring content, and acquiring advertising inventory.
Current wording
The Cost of revenue, platform increased by $249.8 million, or 22%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher costs of Premium Subscriptions, acquiring content, and acquiring advertising inventory.
Previous wording
Gross profit for the platform segment increased by $57.8 million, or 13%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily driven by the overall growth in our platform revenue.
Current wording
Gross profit for the platform segment increased by $56.0 million, or 11%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily driven by the overall growth in our platform revenue.
Previous wording
Gross profit for the platform segment increased by $127.7 million, or 15%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily driven by the overall growth in our platform revenue.
Current wording
Gross profit for the platform segment increased by $183.7 million, or 14%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily driven by the overall growth in our platform revenue.
Previous wording
The Cost of revenue, devices decreased by $23.4 million, or 15%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The decrease was primarily driven by lower inventory provisions of $13.7 million, and lower manufacturing costs of $7.8 million related to lower input costs on Roku-branded TVs and lower sales of streaming players.
Current wording
The Cost of revenue, devices increased by $3.1 million, or 2%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily driven by higher inventory provisions of $7.0 million, partially offset by lower manufacturing costs of $4.0 million related to lower costs to manufacture Roku-branded TVs.
Previous wording
The Cost of revenue, devices increased by $3.1 million, or 1%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher freight costs of $10.7 million and higher manufacturing costs of $9.6 million mainly due to a higher proportion of sales from Roku-branded TVs. The increases were partially offset by lower inventory provisions of $11.7 million, and lower royalty costs of $2.1 million.
Current wording
The Cost of revenue, devices increased by $6.2 million, or 1%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher freight costs of $8.7 million and higher manufacturing costs of $5.2 million mainly due to a higher proportion of sales from Roku-branded TVs. The increase was partially offset by lower inventory provisions of $4.8 million and lower royalty costs of $3.9 million.
Previous wording
Gross loss for the devices segment decreased by $15.2 million, or 100%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily driven by lower inventory provisions. We manage the average selling prices of our products to grow our Streaming Households, which we expect should result in increased platform revenue and platform gross profit over time.
Current wording
Gross loss for the devices segment increased by $11.2 million, or 95%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, primarily driven by higher inventory provisions and lower sales of streaming players. We manage the average selling prices of our products to grow our Streaming Households, which we expect should result in increased platform revenue and platform gross profit over time.
Previous wording
Gross loss for the devices segment decreased by $2.0 million, or 9%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily driven by lower inventory provisions, partially offset by a higher proportion of sales from Roku-branded TVs. We manage the average selling prices of our products to grow our Streaming Households, which we expect should result in increased platform revenue and platform gross profit over time.
Current wording
Gross loss for the devices segment increased by $9.2 million, or 28%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily driven by higher freight costs and higher manufacturing costs. We manage the average selling prices of our products to grow our Streaming Households, which we expect should result in increased platform revenue and platform gross profit over time.
Previous wording
Research and development expenses increased by $2.5 million, or 1%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was driven by higher consulting expenses of $2.5 million.
Current wording
Research and development expenses increased by $3.4 million, or 2%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily driven by higher consulting expenses of $3.8 million.
Previous wording
Research and development expenses increased by $6.7 million, or 2%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher consulting expenses of $7.8 million.
Current wording
Research and development expenses increased by $10.1 million, or 2%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher consulting expenses of $11.6 million.
Previous wording
Sales and marketing expenses increased by $43.2 million, or 10%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher marketing, retail, and merchandising expenses of $34.4 million and higher personnel-related expenses of $11.8 million.
Current wording
Sales and marketing expenses increased by $5.0 million, or 2%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The increase was primarily driven by higher marketing, retail, and merchandising expenses of $14.5 million, higher amortization of $5.4 million, and higher consulting expenses of $2.3 million. The increases were partially offset by lower restructuring charges of $17.0 million.
Previous wording
Sales and marketing expenses increased by $21.6 million, or 10%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily driven by higher marketing, retail, and merchandising expenses of $23.3 million.
Current wording
Sales and marketing expenses increased by $48.2 million, or 7%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher marketing, retail, and merchandising expenses of $48.9 million, higher personnel-related expenses of $11.1 million, higher amortization of $7.2 million, and higher consulting expenses of $6.5 million. The increases were partially offset by lower restructuring charges of $25.9 million.
Previous wording
General and administrative expenses increased by $17.7 million, or 10%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by higher legal and consulting expenses of $16.7 million.
Current wording
General and administrative expenses decreased by $8.9 million, or 9%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was primarily driven by lower personnel-related expenses of $4.6 million, lower restructuring charges of $2.9 million, and lower legal and consulting expenses of $1.0 million.
Previous wording
General and administrative expenses increased by $0.9 million, or 1%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily driven by higher legal and consulting expenses of $6.6 million, partially offset by lower bad debt expense of $4.4 million.
Current wording
General and administrative expenses increased by $8.8 million, or 3%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase was primarily driven by higher legal and consulting expenses of $15.7 million, partially offset by lower restructuring charges of $4.5 million.
Previous wording
Total other income, net decreased by $0.1 million, or less than 1%, during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The decrease was primarily driven by higher interest expense of $0.5 million, partially offset by an increase in other income.
Current wording
Total other income, net decreased by $2.3 million, or 8%, during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024. The decrease was driven by lower other income of $1.9 million and higher interest expense of $0.5 million.
Previous wording
Total other income, net decreased by $8.9 million, or 16%, during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The decrease was primarily driven by a fair value remeasurement loss of $3.1 million on our strategic investment in convertible promissory notes, compared to a gain of $3.6 million during the six months ended June 30, 2024, and higher interest expense of $0.9 million.
Current wording
Total other income, net decreased by $11.2 million, or 13%, during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The decrease was primarily driven by a fair value remeasurement loss of $0.3 million on our strategic investment in convertible promissory notes, compared to a gain of $7.0 million during the nine months ended September 30, 2024, and higher interest expense of $1.3 million.
Previous wording
As of June 30, 2025, we had cash and cash equivalents of $2,253.3 million. Approximately 5% of our cash was held outside the United States in accounts held by our foreign subsidiaries, which are used to fund foreign operations.
Current wording
As of September 30, 2025, we had cash and cash equivalents of $1,575.5 million, and short-term investments of $726.9 million. Approximately 8% of our cash and cash equivalents was held outside the United States in accounts held by our foreign subsidiaries, which are used to fund foreign operations, and all short-term investments were held inside the United States.
Previous wording
Our operating activities provided cash of $248.5 million for the six months ended June 30, 2025. Our net loss of $16.9 million for the six months ended June 30, 2025 was adjusted by non-cash charges of $345.2 million composed primarily of stock-based compensation, amortization of content assets, depreciation and amortization of property and equipment and intangible assets, amortization of operating lease right-of-use assets, fair value change of strategic investment in convertible promissory notes, and impairment of assets as part of restructuring charges. The negative impact from changes in our operating assets and liabilities of $79.8 million was primarily due to decreases in accounts payable and accrued liabilities due to timing of payments, payments made to acquire content, and payments made for operating lease liabilities and other longer-term liabilities, as well as an increase in prepaid expenses and other current assets. This was partially offset by a decrease in accounts receivable, a decrease in inventories, a decrease in other non-current assets, and an increase in deferred revenue.
Current wording
Our operating activities provided cash of $376.1 million for the nine months ended September 30, 2025. Our net income of $7.9 million for the nine months ended September 30, 2025 was adjusted by non-cash charges of $514.6 million composed primarily of stock-based compensation, amortization of content assets, depreciation and amortization of property and equipment and intangible assets, and amortization of operating lease right-of-use assets. The negative impact from changes in our operating assets and liabilities of $146.4 million was primarily due to decreases in accounts payable due to timing of payments, payments made to acquire content, and payments made for operating lease liabilities and other longer-term liabilities. This was partially offset by a decrease in accounts receivable, a decrease in inventories, a decrease in other non-current assets, and an increase in accrued liabilities.
Previous wording
Net cash used in investing activities of $95.1 million for the six months ended June 30, 2025 included purchases of property and equipment of $3.1 million, a purchase of business, net of cash acquired of $95.1 million, and a purchase of a strategic investment of $7.0 million, partially offset by a repayment received from an investment of $10.0 million.
Current wording
Net cash used in investing activities of $821.3 million for the nine months ended September 30, 2025 included purchases of short-term investments of $725.0 million, a purchase of business, net of cash acquired of $95.1 million, a purchase of a strategic investment of $7.0 million, and purchases of property and equipment of $4.2 million, partially offset by a repayment received from an investment of $10.0 million.
Previous wording
Net cash used in financing activities of $68.6 million for the six months ended June 30, 2025 was primarily due to tax payments of $71.5 million to net settle equity awards vested during the period, partially offset by proceeds from employee stock option exercises.
Current wording
Net cash used in financing activities of $146.8 million for the nine months ended September 30, 2025 was primarily due to tax payments of $115.1 million to net settle equity awards vested during the period, and payments of $50.0 million to repurchase common stock, partially offset by proceeds from employee stock option exercises of $18.3 million.