Roku Inc (NASDAQ:ROKU) shares climbed almost 5% following the company’s release of fourth quarter 2025 results, which exceeded Wall Street expectations and highlighted growth in its platform business.
The company reported revenue of $1.395 billion for Q4, a 16% increase from the same period a year earlier and above analyst forecasts of $1.35 billion.
Earnings per share came in at $0.53, nearly double the $0.29 expected by the Street.
For the full year, Roku posted total net revenue of $4.737 billion, up 15% year over year, with platform revenue growing 18% to $4.145 billion.
Gross profit rose 15% to $2.074 billion, while streaming hours increased 15% to 145.6 billion.
During the year, Roku repurchased $150 million of shares under its $400 million buyback program.
Looking ahead, the company said it expects to sustain double-digit platform revenue growth and further expand operating and net income margins in 2026 and beyond.
Wedbush analysts, who maintain an ‘Outperform’ rating on Roku and a 12-month price target of $140, highlighted the company’s “accelerating monetization with an underappreciated runway” and improving profitability.
The analysts wrote that Roku’s Q4 results and 2026 guidance demonstrate its “ability to drive increasingly profitable growth for years to come,” citing high-teens revenue growth, expanding EBITDA margins, rising free cash flow, and accelerated share buybacks.
They also noted the early-stage nature of Roku’s initiatives across advertising products and platform enhancements, saying this points to a long growth runway. On the raised estimates, the analysts wrote, “with the OPEX base now right-sized, and Platform revenue projected to grow in the double digits, incremental margins are expanding rapidly.”
Wedbush added that Roku’s substantial net operating losses should act as a tax shield, “ensuring that pre-tax income converts efficiently into distributable cash,” while the company’s clean balance sheet and improving liquidity support accelerated buybacks.