ROKU, INC

3. REVENUE

The Company’s disaggregated revenue is represented by thetwo reportable segments discussed in Note 16.

The contract balances include the following (in thousands):

Accounts receivable are recorded at the amount invoiced, net of an allowance for sales returns, sales incentives, and doubtful accounts. Payment terms can vary by customer and contract.

The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. The Company’s contract assets are current in nature and are included in Prepaid expenses and other current assets.

Deferred revenue reflects consideration invoiced prior to the completion of performance obligations and revenue recognition. Deferred revenue increased by $19.6 million during the nine months ended September 30, 2025 primarily due to the timing of fulfillment of performance obligations related to advertising arrangements, growth in Premium Subscriptions, and a business combination. See Note 4 for additional details.

Revenue recognized during the three and nine months ended September 30, 2025, from amounts included in total deferred revenue as of December 31, 2024, was $13.9 million and $74.1 million, respectively. Revenue recognized during the three and nine months ended September 30, 2024, from amounts included in total deferred revenue as of December 31, 2023, was $10.5 million and $92.8 million, respectively.

Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Remaining performance obligations exclude contracts with original expected terms of one year or less. Estimated contracted revenue for these remaining performance obligations was $1.1 billion as of September 30, 2025, of which the Company expects to recognize approximately 54% over the next 12 months and the remainder thereafter.

Revenue recognized from performance obligations that were satisfied in previous periods due to changes in the estimated transaction price of the Company’s revenue contracts wasnot significant during the three and nine months ended September 30, 2025. The Company recognized $12.0 million and $15.8 million of revenue during the three and nine months ended September 30, 2024, respectively, from performance obligations that were satisfied in previous periods due to changes in the estimated transaction price of the Company’s revenue contracts.

Customer J accounted for 11% of the Company’s total net revenue during the three and nine months ended September 30, 2025, and 11% of the Company’s total net revenue during the three months ended September 30, 2024. The Company didnot have any customer that individually accounted for 10% or more of its total net revenue during the nine months ended September 30, 2024.