Roku Q3 Platform Growth Slows With FOX Acquisition Pending

The Tip Desk · November 3, 2026 · 4 min read

Platform revenue reached $1.31 billion, up 23%, as net income hit $183 million and the company skipped an earnings call.

Roku (ROKU), the TV streaming platform, reported Platform revenue of $1.31 billion for the third quarter, up 23% from a year earlier, a slower pace than the 25% year-over-year increase in the second quarter and the 28% rise in the first quarter.

Total net revenue was $1.50 billion, up 24% year over year. Streaming Hours were 39.9 billion, up 9% year over year. The company said it remains on track for the second-half 2026 forecast it provided in its proxy statement and, in light of the pending acquisition by FOX, will not host an earnings call or provide a financial outlook.

Advertising revenue was $727 million, up 23% year over year, the ninth consecutive quarter of double-digit growth. Advertising gross margin expanded to 63.2%, up approximately 470 basis points year over year, which the company said was driven primarily by a mix shift toward higher-margin ad products. More than 80% of in-stream video ad impressions were delivered programmatically. Political advertising on the platform exceeded the comparable quarter from the 2024 U.S. presidential election cycle, the company said, and the Media & Entertainment vertical posted its highest year-over-year revenue growth in four years.

Subscriptions revenue was $581 million, up 23% year over year. Subscriptions gross margin compressed to 40.9%, down roughly 180 basis points year over year, with the largest factor a strategic mix shift toward Premium Subscriptions. The company said approximately 95% of Premium Subscription sign-ups came from customers who had never subscribed to that service directly, and that Roku grew its share of U.S. SVOD subscriptions despite a sequential decline in the overall market.

Platform gross profit was $697 million, with Platform gross margin of 53.3%, compared with 53.0% in the second quarter and 51.6% in the first quarter. Total gross profit was $649 million, up 24% year over year, and total gross margin was 43.2%.

Devices revenue was $194 million, up 33% year over year, with Devices gross margin of (25.1%), which the company said was driven primarily by elevated memory costs. Roku-made TVs approached 8% of total TV unit sales volume in the U.S., the company said. In September it launched its first OLED TVs, the Roku Pro Series OLED and Roku Pro Series LX OLED, available exclusively on Amazon. TCL expanded its Roku TV lineup at Target and Hisense is moving its value assortment to Roku at Best Buy; the company said it expects those partnerships to contribute to Roku TV model unit volume in the fourth quarter of 2026 and that distribution costs for Roku TV model sales will be weighted toward that period.

Net income was $183 million, or $1.20 a share on a diluted basis, compared with $25 million, or $0.16 a share, a year earlier. Adjusted EBITDA was $249 million, with Adjusted EBITDA margin of 16.6%. Income from operations was $164 million. Sales and marketing expense fell to $191 million from $223 million in the second quarter. Research and development was $187 million. General and administrative expense was $107 million.

Free Cash Flow on a trailing-twelve-month basis was $796 million. Cash and cash equivalents were $2.52 billion as of September 30, 2026.

In July the company completed the U.S. rollout of a new Roku Home Screen and said it is now rolling the update out internationally. It said an early result is a reduction in Premium Subscription cancellations. The Roku Channel was the No. 2 app on the platform by engagement in the U.S. and globally. The World Cup sports experience, the company said, reached viewers across seven international markets and drove more than one million subscription sign-ups across services including Peacock, Paramount+, FOX One, and ViX.

On June 15, 2026, Fox Corporation and Roku announced a definitive agreement under which FOX will acquire Roku. Founder and CEO Anthony Wood and CFO and COO Dan Jedda said the pending acquisition is an opportunity to accelerate the company’s vision.