Roku Posts Strong Q2 In Wake Of Fox Deal As Platform Revenue Jump Pushes It Past Wall Street Forecasts
Roku posted a strong second quarter, beating Wall Street forecasts as platform revenue surged, marking its first earnings report since agreeing in June to be acquired by Fox Corp in a proposed $22 billion deal. The result underscores Roku's improving core business just as it heads towards new ownership, with executives crediting a major redesign of the Roku home screen for driving growth in both advertising and subscriptions.
Diluted earnings per share reached $1.08, up sharply from 7 cents a year earlier, while total revenue rose 22% to $1.35 billion, with platform revenue up 25%. CEO Anthony Wood and CFO Dan Jedda said the revamped home screen, unveiled last May and now fully rolled out domestically, had improved user retention and would expand internationally in the coming months; the quarter also saw Peacock's ad-free tier added to Roku's subscriptions hub alongside Apple TV. Citing the pending Fox acquisition, which is expected to close in the first half of 2027, Roku did not hold an earnings call, though executives described the deal as an opportunity to "scale faster and innovate more aggressively."
- Roku's Q2 revenue and earnings beat Wall Street expectations
- Platform revenue jumped 25% on ads and subscriptions growth
- First results since Roku agreed to Fox's $22bn takeover
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Roku makes streaming devices and software that let people watch services such as Netflix and Peacock on their televisions. Its “platform” business earns money from advertising and subscriptions, while its devices help bring viewers into that system. A redesigned home screen can affect how easily viewers find programmes and services, and how often they keep using Roku.
Anthony Wood is Roku’s chief executive, and Dan Jedda is its finance chief. Fox Corp is the company that has agreed to buy Roku in a proposed deal; the transaction is still pending and is expected to close in 2027. The deal matters because it could change who owns Roku as the company seeks to grow its advertising and subscription business.
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