ROKU, INC
For the period ended Sep 30, 2026. Filed Nov 2, 2026.
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Sep 30, 2026 · Filed Nov 2, 2026
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10. Leases
- LEASES
The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from less thanone year toseven years and may include options to extend or terminate the lease. The depreciable life of operating lease right-of-use assets is limited by the expected lease term.
The components of lease expense are as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |
| Operating lease expense | $17,254 | $18,364 | $52,404 | $54,584 |
| Variable lease expense | 6,595 | 6,944 | 19,604 | 19,026 |
| Sublease income | (5,994) | (6,200) | (18,368) | (17,302) |
| Total operating lease expense | $17,855 | $19,108 | $53,640 | $56,308 |
Supplemental cash flow information related to leases is as follows (in thousands):
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |
| Cash paid for amounts included in the measurement of lease liabilities: | ||||
| Operating cash outflows from operating leases (1) | $50,637 | $27,462 | $116,138 | $77,749 |
| Right-of-use assets obtained in exchange for lease obligations: | ||||
| Operating leases | $2,812 | $53 | $9,908 | $7,927 |
| Decrease in operating lease right-of-use assets due to impairment | $5,394 | $— | $10,314 | $2,870 |
(1)Includes any termination payments associated with lease exits.
During the three months ended September 30, 2026, the Company terminated a portion of a previously impaired corporate office lease and recorded an impairment credit of $22.3 million within operating expense on the condensed consolidated statements of operations and comprehensive income. This credit was comprised of a $56.6 million removal of the remaining lease liability, partially offset by $5.4 million of additional right-of-use asset impairment charges, $2.7 million of property and equipment impairment charges, and $26.2 million of termination fees and other charges. There wereno right-of-use asset impairment charges during the three months ended September 30, 2025.
The Company recorded operating lease right-of-use asset impairment charges of $10.3 million and $2.9 million related to the ceased use of certain of its corporate facilities during the nine months ended September 30, 2026, and 2025, respectively.
Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):
| As of | ||
|---|---|---|
| September 30, 2026 | December 31, 2025 | |
| Operating lease right-of-use assets | $222,564 | $260,341 |
| Operating lease liability, current (included in Accrued liabilities) | 82,511 | 87,425 |
| Operating lease liability, non-current | 317,968 | 435,899 |
| Total operating lease liability | $400,479 | $523,324 |
| Weighted-average remaining term for operating leases (in years) | 5.22 | 6.11 |
| Weighted-average discount rate for operating leases | 4.06% | 3.99% |
Future lease payments under operating leases as of September 30, 2026 are as follows (in thousands):
| Year Ending December 31, | Operating Leases (1) |
|---|---|
| 2026 (remaining 3 months) | $23,871 |
| 2027 | 95,521 |
| 2028 | 91,359 |
| 2029 | 86,680 |
| 2030 | 65,020 |
| Thereafter | 82,659 |
| Total future lease payments | 445,110 |
| Less: imputed interest | (42,032) |
| Less: expected tenant improvement allowance | (2,599) |
| Total | $400,479 |
(1) Non-cancelable sublease proceeds for the fiscal years ending December 31, 2026 (remaining 3 months), 2027, 2028, and 2029 of $4.1 million, $16.7 million, $16.7 million, and $10.6 million, respectively, are not included in the table above.
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