ROKU, INC

3. REVENUE

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

The contract balances include the following (in thousands):

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. Contract assets increased by $2.0 million during the nine months ended September 30, 2026 due to the timing of billing to customers.

Deferred revenue reflects consideration invoiced prior to the completion of performance obligations and revenue recognition. Deferred revenue decreased by $5.0 million during the nine months ended September 30, 2026 primarily due to timing of fulfillment of performance obligations related to advertising arrangements.

Revenue recognized during the three and nine months ended September 30, 2026 from amounts included in total deferred revenue as of December 31, 2025 was $32.5 million and $110.8 million, respectively. 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 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 $479.8 million as of September 30, 2026, of which the Company expects to recognize approximately 56% 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, 2026 and 2025.

Customer J accounted for 11% of total net revenue during the three and nine months ended September 30, 2026 and 2025, which was primarily attributable to the Advertising segment.

Revenue by geography is determined based on the location where the Company’s products and services are delivered. Revenue in international markets was less than 10% in each of the periods presented.