Roku Expects to Be Profitable Next Year and Its Stock Is Soaring
Roku stock is surging Friday after the streaming platform topped Q4 expectations and said it expects to be profitable in 2026. Here's what you need to know.


Roku (ROKU) stock is red-hot on Friday after the streaming platform beat top- and bottom-line expectations for its fourth quarter and said it expects to be profitable in 2026.
In the three months ending December 31, Roku's revenue increased 22% year over year to $1.2 billion, driven by a 24.9% increase in platform revenue to $1 billion. Its net loss per share narrowed to 24 cents from 55 cents in the year-ago period.
"We delivered outstanding Platform results in Q4 – our first quarter with more than $1 billion in Platform revenue,” Roku said. "In Q4, streaming hours on The Roku Channel grew 82% YoY, and in the U.S. it reached households with approximately 145 million people."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The company added that it continues to "make progress growing ad demand through deeper third-party platform integrations, improving the Roku Experience (which starts at our Home Screen) to expand monetization, and growing Roku-billed subscriptions."
The results beat analysts' expectations. Wall Street was anticipating revenue of $1.15 billion and a net loss of 41 cents per share, according to Barron's.
Roku also said streaming households rose 12.3% year over year to 89.8 million, streaming hours increased 17.2% year over year to 34.1 billion and average revenue per user was up 3.9% year over year to $41.49.
For its first quarter, Roku said it expects to achieve revenue of approximately $1.005 billion, just about in-line with the $1.006 billion in revenue analysts are anticipating. For the full fiscal year, the company is calling for revenue of roughly $4.61 billion.
"As we look ahead, we see clear paths to growing our key performance metrics of Streaming Hours, Platform revenue, Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization], and Free Cash Flow," Roku said. "In addition, we expect to be operating income positive for full year 2026."
Is ROKU stock a buy, sell or hold?
Roku has been gaining ground since its mid-summer lows, gaining 83% in the past six months or so. And Wall Street is bullish on the communication services stock. According to S&P Global Market Intelligence, the consensus recommendation among the 32 covering analysts it tracks is a Buy.
However, analysts' price targets have not been able to keep up with the surging stock price. The average price target currently stands at $100.06, which is right around where ROKU currently trades.
But some on Wall Street have started adjusting their price targets, including Wedbush, which lifted its target price to $125 from $100 following the strong quarter. The financial services firm also maintained its Outperform rating (equivalent to a Buy) on the large-cap stock.
"Roku handily beat 2024 EBITDA expectations, set solid 2025 EBITDA guidance, and guided to positive operating income in 2026," says Wedbush analyst Alicia Reese. "We think investors will reward the company for taking a balanced approach as it expands internationally, expands its platform capabilities, and expands The Roku Channel's ad capabilities, all while maintaining expense discipline to drive free cash flow."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail Sales
Investors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
By David Dittman Published
-
Loneliness a Risk When Retiring Abroad, Says New Study
More Americans want to retire abroad, but loneliness can undermine your happiness and health, even in paradise. Here's how to avoid loneliness abroad.
By Christy Bieber Last updated
-
Stock Market Today: Dow Adds 353 Points Despite Soft Retail Sales
Investors and traders shake off another set of shaky economic numbers and send 10 of 11 sectors higher on Monday.
By David Dittman Published
-
CoreWeave IPO: Should You Buy CRWV Stock?
The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
By Karee Venema Published
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% Return
Nvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
By Louis Navellier Published
-
10 Tax Topics Every Retiree Should Know About
A little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
By Michael Miller Published
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return Club
Warren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
By Louis Navellier Published
-
4 Turnaround Stocks to Consider – and 2 More to Keep an Eye On
A turnaround stock is a struggling company with a strong makeover plan that can pay off for intrepid investors.
By Nellie S. Huang Published
-
Facing a Layoff? Ask Your Employer These Questions Now
If you're being laid off or forced into early retirement, don't make any decisions without proper guidance — and that starts by asking some key questions.
By Ben Maxwell, ChFC®, AAMS® Published
-
Stock Market Today: Dow Jumps 674 Points in Friday's Relief Rally
The gains weren't limited to stocks, though, with gold futures closing above the $3,000 per ounce mark for the first time.
By Karee Venema Published