Roku Q2 Revenue Up 22% and Net Income Zooms to $164 Million in Huge Beat, Abstains From Providing Outlook Amid Pending Fox Corp. Sale
Roku posted stronger-than-expected second-quarter 2026 results, with revenue up 22% to $1.35 billion and net income surging to a record $164.2 million, marking its fifth consecutive profitable quarter after years of losses. The strong performance comes as the streaming platform prepares for its $22 billion sale to Fox Corp., announced in mid-June, with Roku declining to hold an earnings call or provide forward guidance due to the pending deal. The results underline Roku's growing scale in TV streaming just as it heads towards new ownership expected to close in the first half of 2027.
Diluted earnings per share came in at $1.08, double analyst expectations, while trailing 12-month free cash flow hit a record $704 million. Platform revenue rose 25% to $1.22 billion, driven by advertising sales of $673 million (up 25%) and subscription revenue of $548 million (up 26%), while total streaming hours reached 37.9 billion, up 7% year-on-year, across more than 100 million households. Roku also highlighted the rollout of its redesigned home screen, its biggest update in over a decade, which executives said is already improving household retention. Following the Fox acquisition, founder and CEO Anthony Wood is set to retain an ongoing role and join Fox's board.
- Roku Q2 revenue jumped 22% to $1.35 billion, beating forecasts.
- Net income hit a record $164.2 million amid pending Fox Corp. takeover.
- Roku withheld guidance and skipped its earnings call due to the deal.
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Roku makes streaming devices and runs a platform that lets people watch services on their TVs. It earns money from advertising and subscriptions, as well as selling devices, and its platform business accounts for most of its revenue.
Fox Corp. is a US media company that owns television networks and other news and entertainment businesses. It has agreed to buy Roku, whose founder and chief executive, Anthony Wood, is expected to keep a role and join Fox’s board once the deal is completed.
The sale would bring Roku, which reaches more than 100 million households, under new ownership. Its results matter to investors assessing the scale and profitability of the business as it moves towards that change.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Roku's exceptional Q2 results, with 22% revenue growth and record net income of $164.2 million marking its fifth consecutive profitable quarter, demonstrate strong operational performance that validates Fox's $22 billion acquisition decision. The company's decision to withhold forward guidance during deal closure is prudent and standard M&A practice, and should not undermine confidence in these substantial, concrete financial achievements.
The case against
Roku's refusal to provide forward guidance severely constrains investors' ability to evaluate whether these strong Q2 results represent sustainable momentum or a temporary surge, raising legitimate concerns about an acquisition of this magnitude. Without visibility into management's own expectations for future quarters, investors cannot properly assess the acquisition's merit when the company declines to disclose its forward outlook.
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