ROKU, INC
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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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.
Jun 30, 2026 · Filed Aug 6, 2026
Contents
16. Segment Information
- SEGMENT INFORMATION
An operating segment is defined as a component of an entity for which discrete financial information is available that is evaluated regularly by the CODM for purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer. The CODM evaluates performance and makes decisions about allocating resources to its operating segments based on financial information presented on a consolidated basis and on gross profit for each operating segment.
Beginning in the first quarter of 2026, the Company changed its internal reporting structure and the CODM began receiving disaggregated financial information that allows him to allocate resources and evaluate performance between three operating segments: Advertising, Subscriptions, and Devices. As such, the Company now hasthree reportable segments. The Company’s prior period amounts have been retrospectively adjusted to reflect the disaggregation of the Company’s previous Platform operating segment into the Advertising and Subscriptions operating segments. There are no changes to the consolidated financial statements for any prior periods.
Descriptions of the Company’sthree reportable segments are as follows:
Advertising revenue is generated from the sale of digital advertising, including direct and programmatic video advertising, ads integrated into the Company’s user interface (“UI”), and related services.
Subscriptions revenue is generated from the sale of subscriptions to end users, including the sale of Premium Subscriptions, the sale of owned and operated subscription services, and revenue from content distribution arrangements, which primarily includes subscription revenue shares from content partners and the sale of branded app buttons on remote controls.
Devices
Devices revenue is generated from the sale of streaming players, Roku-made TVs, smart home products and services, audio products, and related accessories.
For all reportable segments, Cost of revenue is the significant segment expense that is regularly provided to the CODM. The Company reports its financial results consistent with the manner in which financial information is viewed by management for decision-making purposes. The Company does not manage operating expenses such as research and development, sales and marketing, and general and administrative expenses at the segment level. The Company does not allocate property and equipment or any other assets or capital expenditures to reportable segments.
The following table presents financial information for each of the Company’s reportable segments (in thousands):
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |
| Advertising | ||||
| Net revenue | $672,816 | $539,053 | $1,285,521 | $1,021,876 |
| Cost of revenue | 252,778 | 237,405 | 494,514 | 449,829 |
| Gross profit | 420,038 | 301,648 | 791,007 | 572,047 |
| Subscriptions | ||||
| Net revenue | 548,153 | 436,418 | 1,066,678 | 834,412 |
| Cost of revenue | 321,439 | 240,390 | 626,848 | 444,472 |
| Gross profit | 226,714 | 196,028 | 439,830 | 389,940 |
| Devices | ||||
| Net revenue | 133,721 | 135,567 | 251,370 | 275,422 |
| Cost of revenue | 106,777 | 135,585 | 243,575 | 294,706 |
| Gross profit (loss) | 26,944 | (18) | 7,795 | (19,284) |
| Total | ||||
| Net revenue | 1,354,690 | 1,111,038 | 2,603,569 | 2,131,710 |
| Cost of revenue | 680,994 | 613,380 | 1,364,937 | 1,189,007 |
| Gross profit | $673,696 | $497,658 | $1,238,632 | $942,703 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.