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Roku Delivers Another Stellar Quarter: Q3 Sales Soar 24% as Media and Entertainment Ad Spending Sees Biggest Growth in Four Years
Roku reported strong third-quarter results, with revenue rising 24% to $1.50 billion and net income increasing more than seven-fold to $183 million. The growth comes as Fox prepares to acquire the streaming platform company in a deal expected to close in the first half of 2027.
Platform revenue rose 23% to $1.3 billion, with advertising and subscription sales each up 23%; Roku said media and entertainment advertising had its strongest year-over-year growth in four years. Viewers streamed 39.9 billion hours, up 9%, while Devices revenue climbed 33% to $194 million but the segment recorded a $48.6 million operating loss, partly due to higher memory costs. Roku is not providing financial guidance or holding an earnings call while the Fox acquisition is pending.
In short
- Roku’s Q3 revenue rose 24% to $1.50 billion.
- Net income reached $183 million, more than seven times higher.
- Fox’s $22 billion acquisition is expected to close in 2027.
Explained simply
Roku is a US company that makes streaming devices and smart televisions, and runs a platform where viewers watch films, programmes and other video. It earns money from selling devices, advertising on its platform and subscriptions to streaming services.
Advertising is an important source of income for Roku, so changes in how much media companies spend on adverts can affect its results. Its devices business can also face higher costs for components such as memory chips, which may reduce its profits.
Fox has agreed to acquire Roku, with the deal expected to close in the first half of 2027. While the acquisition is pending, Roku is not giving financial guidance or holding earnings calls, leaving investors with less company commentary about its outlook.
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