Roku’s second-quarter results were more than a beat. The company delivered $1.11 billion in revenue, up 15% year over year, a surprise net profit of $10.5 million, and raised its full-year guidance. The strong quarter reflects the momentum behind its platform-first strategy. Platform revenue rose 18% to $975.5 million, well above expectations, driven by growth in video advertising and the recent acquisition of Frndly TV.
Roku now projects $4.075 billion in platform revenue and $375 million in adjusted EBITDA for 2025, both increases from previous guidance. CEO Anthony Wood credited the improvement to execution on a strategy first set 18 months ago.
Streaming hours hit 35.4 billion, a 17% increase year over year. The Roku Channel remained the second most engaged app on the platform in the U.S. Roku also pointed to The Gauge report from Nielsen, where its channel represented 5.4% of all streaming time in the country.
Device revenue grew 6% to $136 million, though the segment was not the main story. Roku’s focus continues to shift toward its platform business, which includes advertising, content distribution, and subscriptions. Growth in premium subscription sign-ups and higher pricing from last year contributed to the gains.
Ad tech played a central role in the quarter. Roku announced an integration with Amazon’s demand-side platform in June, bringing Amazon advertisers to Roku users across key apps. The company also expanded its programmatic reach with a deeper connection to Wurl’s DSP. CFO Dan Jedda said Roku Ads Manager is bringing in hundreds of new advertisers, many of whom are new to TV.
The company also leaned into custom marketing. For the premiere of Disney+’s “Andor” Season 2, Roku created a branded home-screen experience. Roku Streaming Day in May featured promotions from more than 20 premium partners, which helped drive sign-ups.
Roku also announced a $400 million stock repurchase program for Class A shares. The move is intended to offset stock-based compensation and support long-term shareholder value through free cash flow per share growth.
Looking ahead, Roku expects third-quarter revenue of $1.2 billion and 16% year-over-year growth in platform revenue. The company said it remains on track to generate positive operating income in Q4 2025 and for the full year 2026.
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