A Business at a Glance
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Roku, Inc. (“Roku,” the “Company,” “we,” or “us”) is the leading TV streaming platform in the United States, Canada, and Mexico by hours streamed. We pioneered TV streaming and believe that all TV will be streamed. The shift of the TV ecosystem to streaming continues and is expanding TV’s capabilities for viewers, content partners, advertisers, and other industry participants. Nearly every major media company not only has a streaming service, but has also expanded beyond pure subscription streaming models to ad-supported streaming options. Advertisers use TV streaming to reach viewers who are increasingly unreachable on traditional TV, while also benefiting from the digital advertising capabilities that TV streaming platforms can deliver. Our Mission Our mission is to be the global TV streaming platform that connects and benefits the entire TV ecosystem of viewers, content partners, and advertisers.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 4.7B | 4.7B | 4.1B | 3.5B | 3.1B | 2.8B |
| Net Income | 88M | 88M | -129M | -710M | -498M | 242M |
| EPS | $0.59 | $0.59 | $-0.89 | $-5.01 | $-3.62 | $1.71 |
| Free Cash Flow | 478M | 478M | 213M | 173M | -150M | 188M |
| ROIC | -0.5% | 3.3% | -5.2% | -30.5% | -18.3% | 8.5% |
| Gross Margin | 43.8% | 43.8% | 43.9% | 43.7% | 46.1% | 51.0% |
| Debt/Equity | 0.00 | 0.67 | 0.73 | 0.00 | 0.09 | 0.04 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | -5.6M | -5.6M | -218M | -792M | -531M | 235M |
| Operating Margin | -0.1% | -0.1% | -5.3% | -22.7% | -17.0% | 8.5% |
| ROE | 3.3% | 3.4% | -5.2% | -30.5% | -18.8% | 8.8% |
| Shares Outstanding | 150M | 150M | 145M | 142M | 138M | 142M |
ROKU, INC passes 1 of 9 quality checks, indicating weak fundamentals.
ROKU, INC trades at 180.6x trailing earnings, compared to its 15-year median P/E of 15.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 29.1x vs a median of 52.6x. The company's 5-year average gross margin is 45.7%. Total shareholder yield (buybacks) is 0.9%. At current prices, the estimated annualized return to fair value is +65.9%.
ROKU, INC (ROKU) has a current P/E ratio of 180.6, compared to its historical median P/E of 15.0. The stock is currently considered Expensive based on its historical valuation range.
ROKU, INC (ROKU) has a 5-year average return on invested capital (ROIC) of -8.4%. This is below average and may indicate limited pricing power.
ROKU, INC (ROKU) has a market capitalization of $16.0B. It is classified as a large-cap stock.
ROKU, INC (ROKU) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 0.94%.
Based on historical P/E analysis, ROKU, INC (ROKU) appears expensive. The current P/E of 180.6 is 1104% above its historical median of 15.0. The estimated fair value CAGR (P/E method) is 16.5%.
ROKU, INC (ROKU) operates in the Cable & Other Pay Television Services industry, within the Communication Services sector.
ROKU, INC (ROKU) reported annual revenue of $4.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
ROKU, INC (ROKU) has a net profit margin of 1.9%. This is a modest margin.
ROKU, INC (ROKU) generated $478 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ROKU, INC (ROKU) has a debt-to-equity ratio of 0.67. This indicates moderate leverage.
ROKU, INC (ROKU) reported earnings per share (EPS) of $0.59 in its most recent fiscal year.
ROKU, INC (ROKU) has a return on equity (ROE) of 3.4%. This indicates moderate shareholder returns.
ROKU, INC (ROKU) has a 5-year average gross margin of 45.7%. This indicates decent pricing power.
The Ledger Terminal provides 10 years of financial data for ROKU, INC (ROKU), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ROKU, INC (ROKU) has a book value per share of $17.75, based on its most recent annual SEC filing.