ROKU, INC

14. INCOME TAXES

Income tax expense was $2.9 million and income tax benefit was $13.1 million for the three months ended March 31, 2026 and 2025, respectively. The increase in income tax expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 is primarily due to increases in pre-tax book income, partially offset by decreases due to a reduction in U.S. federal and certain state taxes due to the 2025 enactment of the One Big Beautiful Bill Act.

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 March 31, 2026, the Company has a full valuation allowance against its net deferred tax assets in the United States. Given the Company's current and anticipated future earnings, the Company believes that there is a reasonable possibility that the valuation allowance against these net deferred tax assets may be reversed within the next twelve months. The exact timing and amount of the valuation allowance release are subject to change based on the level of profitability that the Company actually achieves.