Roku, Inc. announced its financial results for the quarter ended September 30, 2026, in a filing dated November 2, 2026. The company reported total net revenue of $1.5 billion, representing a 24% year-over-year increase. Platform revenue, which includes advertising and subscriptions, grew 23% year-over-year to $1.3 billion.
Key financial metrics for the third quarter included total gross profit of $649 million, up 24% year-over-year. The company generated net income of $183 million and Adjusted EBITDA of $249 million. Free cash flow over the trailing twelve months was reported at $796 million.
Platform revenue growth was driven by Advertising and Subscriptions, both of which increased 23% year-over-year. Advertising revenue reached $727.4 million, with a gross margin of 63.2%. Subscriptions revenue was $580.9 million, with a gross margin of 40.9%. The company noted a mix shift toward higher-margin ad products contributed to the advertising margin expansion.
Devices revenue increased 33% year-over-year to $193.7 million, though the segment reported a gross margin of (25.1%) due to elevated memory costs. Roku-made TVs exceeded expectations, approaching 8% of total TV unit sales volume in the U.S. In September, the company launched its first-ever OLED TVs, the Roku Pro Series OLED TV and Roku Pro Series LX OLED TV, available exclusively on Amazon.
In terms of engagement, streaming hours totaled 39.9 billion, up 9% year-over-year. The Roku Channel was ranked the second-most engaged app on the platform in both the U.S. and globally. The company highlighted the rollout of the new Roku Home Screen in the U.S. and international markets, designed to improve content discovery and personalization.
The company also noted that political advertising on the Roku platform in Q3 exceeded the comparable quarter from the 2024 U.S. presidential election cycle. Additionally, the Sports Experience was launched in Canada, and full Cloud DVR capabilities were introduced for FOX One in Premium Subscriptions.
Roku stated that it remains on track for its second half 2026 forecast provided in its proxy statement. The company noted that pending acquisition by Fox Corporation will not result in an earnings call or financial outlook.
