Roku handily beat Wall Street analysts’ consensus forecast for earnings in the fourth quarter and signaled plans to roll out bundles of premium streaming subscriptions.
The company posted revenue of $1.4 billion in the fourth quarter, up 16%, with adjusted earnings per share of 53 cents, a reversal of the year-ago quarter’s loss of 24 cents a share. Analysts had been calling for earnings of 28 cents a share.
Roku shares rocketed 13% in after-hours trading on the financials as well as upbeat guidance.
Roku estimated its audience at 90 logged-in households globally by the end of 2025. The company noted that the Roku Channel had climbed to the No. 2 spot among free, ad-supported channels on its platform, trailing only YouTube.
In its quarterly letter to shareholders, Roku said the fourth quarter was its biggest ever for premium subscriptions net adds, not a surprise given the holiday period often sees a surge of streaming.
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The company credited the holiday timing as well as improvements in its user interface.
HBO Max was added to the roster of 13 premium subscription partners, with more on the way. In the letter, execs said they plan to roll out bundled plans. Third-party bundles like one with Disney+, Hulu and HBO Max, are offered on Roku but the company sees upside in being the architect and distribution hub for packages in the future.
“By expanding our platform monetization over the last two years, we’ve unlocked new growth engines,” noted CEO Anthony Wood in the letter. A milestone in the distribution growth was Roku’s 2025 acquisition of Frdnly.
In 2026, Roku expects total revenue of $5.5 billion, with adjusted EBITDA rising nearly fivefold to $635 million. Growth in platform revenue will continue in the double-digit range, the company said.