Roku reported third-quarter 2026 net revenue of $1.5 billion, up 24% from the same period a year earlier. Platform revenue, which includes advertising and subscriptions, increased 23% to $1.3 billion, with both segments growing at that rate. The results were released while Roku’s proposed acquisition by Fox Corporation remains pending; the companies announced a definitive agreement on June 15, 2026.

Roku recorded $649 million in gross profit and $183 million in net income. Adjusted EBITDA was $249 million, while free cash flow totaled $796 million on a trailing 12-month basis. Streaming hours reached 39.9 billion, up 9% year over year. Roku said The Roku Channel was the platform’s second most-engaged application in the United States and worldwide.

Advertising revenue grew to $727 million, marking the ninth consecutive quarter of double-digit growth. Segment gross margin rose to 63.2%, an increase of about 470 basis points, which Roku attributed mainly to a shift toward higher-margin products. More than 80% of in-stream video ad impressions were delivered programmatically. The company also reported that political advertising exceeded levels from the equivalent period of the 2024 U.S. presidential election cycle.

Subscription revenue reached $581 million. Gross margin in the segment fell to 40.9%, with Roku citing a strategic shift toward premium subscriptions as the largest factor. About 95% of premium subscription sign-ups came from customers who had not previously subscribed directly. Roku said it increased its share of U.S. subscription video-on-demand subscriptions despite a sequential decline in the overall market.

Devices revenue rose 33% to $194 million, but the segment posted a gross loss, primarily because of higher memory costs. Roku-made televisions approached 8% of U.S. television unit sales during the quarter. The company introduced its first OLED television models and continued expanding licensing relationships with television brands.

Roku completed the U.S. rollout of a redesigned home screen and expanded the use of artificial intelligence in recommendations and search. Sports features generated more than one million subscription sign-ups during the World Cup, and the company launched premium subscription bundles with more than 35 service combinations.

Because the acquisition is pending, Roku did not hold an earnings call or issue a financial outlook. Management said the results remain consistent with the second-half 2026 forecast included in the transaction’s proxy statement.

Sources: Cord Cutters News.