Roku Inc (NASDAQ:ROKU) shares edged higher after the company delivered an earnings beat for the first quarter of 2026, underscoring accelerating profitability in its core streaming platform business.
The company reported adjusted earnings of $0.57 per share, comfortably ahead of analyst expectations of $0.33.
Revenue came in at $1.25 billion, up 22.4% year over year and above forecasts of roughly $1.2 billion.
Much of the outperformance was driven by Roku’s platform segment, which continues to carry the business. Platform revenue rose 28% year over year to $1.13 billion, supported by strength in advertising and subscription revenue. Advertising alone climbed 27% to $613 million, with Roku noting strong momentum in video ads that outpaced broader OTT and digital advertising markets.
Profitability trends also improved meaningfully. Net income reached $86 million, while adjusted EBITDA surged 165% year over year to $148 million. The company also reported record trailing twelve-month free cash flow and continued buybacks, repurchasing $100 million of shares during the quarter.
Engagement remained solid, with streaming hours rising 8% year over year to 38.7 billion. The Roku Channel also continued to gain traction, ranking as the second-most engaged app on the platform in the US.
Looking ahead, Roku guided second-quarter revenue to approximately $1.3 billion, representing about 17% growth, alongside adjusted EBITDA of $170 million.
For the full year, the company raised its outlook, now expecting $5.5 billion in total revenue and continued mid- to high-teens margin expansion as platform growth drives improved scale.
“We are executing against our monetization initiatives and remain well-positioned to drive sustained double-digit Platform growth and achieve $1 billion of free cash flow by 2028, if not sooner,” Roku CEO Anthony Wood wrote in a letter to shareholders.
Shares of Roku were up 1.2% shortly after Friday’s opening bell.