Roku, Inc.ROKU
NasdaqGS•Communication Services•Entertainment
Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others, as well as offers digital advertising services. The company also sells streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.
Roku, Inc. (ROKU) reported trailing twelve months revenue of $4.97B as of March 2026, a 16.8% increase year-over-year. Quarterly revenue reached $1.25B, reflecting continued top-line momentum.
Roku, Inc. generated $201.49M in TTM net income, with quarterly EBITDA of $65.67M. The operating margin expanded from -5.7% to 4.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (4.1%) and net margin (6.9%) indicates tight cost control with minimal non-operating drag. Net margin has improved from -2.7% a year ago, signaling stronger bottom-line efficiency.
ROKU trades at a P/E of 64.6x (a premium multiple) and a P/S of 2.6x. The price-to-book ratio of 4.9x reflects a moderate premium to book value.
The company generated $196.01M in free cash flow over the trailing twelve months, a 43.3% increase year-over-year, indicating strong cash generation ability. The balance sheet shows $4.35B in total assets with no in long-term debt against $2.67B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging -1.5%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~32.6% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding rose 2.2% — mild dilution. Compare to earnings growth to assess net per-share impact.