ROKU, INC

14. INCOME TAXES

Income tax expense was $4.0 million and $13.2 million for the three months ended September 30, 2026 and 2025, respectively. Income tax expense was $12.1 million and income tax benefit was $5.7 million for the nine months ended September 30, 2026 and 2025, respectively.

The decrease in income tax expense for the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, was primarily attributable to a cumulative estimated annual effective rate adjustment recorded in the third quarter of 2025 following the enactment of the One Big Beautiful Bill Act. The increase in income tax expense for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was primarily attributable to higher pre-tax book income.

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 September 30, 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.