ROKU Communication Services

Roku, Inc.

$160.36+3.11%

Price as of close on Nov 3, 2026 · Financials updated Sep 30, 2026

Basics

Sector: Communication Services
Industry: Entertainment
Country: United States
Market cap: 23.8B USD
Enterprise value: 21.7B USD
Full-time employees: 3,600

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: its share price swings more than most peers’ (beta 2.05 vs a peer median of 0.65)bigger price swings (beta 2.05 vs peers 0.65)
About average: risk (debt, liquidity and share-price swings)risk

Ranks #136 of 454 communication services companies (top 30%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $1.1B vs $150M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years Roku recorded $1.1B of stock-based pay expense and spent $150M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Roku recorded $1.1B of stock-based pay expense and spent $150M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Earnings turned from a loss to a profit. Profit per share this year after a loss last year.
Roku made a profit per share in its latest year after a loss the year before.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $1.8B in 2020 to $4.7B in 2025.
Roku's fiscal-year revenue rose in each of the five years to 2025, from $1.8B to $4.7B.
Profit is backed by cash. Free cash flow is 200% of reported profit.
Roku's free cash flow is 200% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

StockQuotient Score

61/ 100▲ 1 since Oct 27 close

Oct 5 61 → Nov 4 61

Valuation

Is the price right?

24/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ FCF yield
▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield1.5%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.50Sector median: 0.0294 · MAD: 0.0294

EBITDA yield2.7%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsReported value50% base weight · Z-score -0.91Sector median: 0.0857 · MAD: 0.0649

Free cash flow yield2.9%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.76Sector median: 0.0740 · MAD: 0.0593

Other data (not scored)

Book yield11.6%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.4780 · MAD: 0.3375

Growth

Is it growing?

93/100

Strong▲ 1 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 4.9%

Why it changed since the Oct 27, 2026 close: Score 92 → 93

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Stronger than most peers on:

▲ EPS growth
▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Earnings per share turned from a loss to a profit33% base weight · Z-score 4.87Sector median: 0.0878 · MAD: 0.3126

3-year revenue growth17.4%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 2.11Sector median: 0.0303 · MAD: 0.0683

Revenue growth18.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.16Sector median: 0.0299 · MAD: 0.0720

Profitability

Does it earn well?

78/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Operating margin rose 3.2 points to 5.2%

Why

Stronger than most peers on:

▲ ROIC
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin5.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -0.37Sector median: 0.0818 · MAD: 0.0789

Return on assets7.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.59Sector median: 0.0272 · MAD: 0.0318

Return on invested capital26.3%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.88Sector median: 0.0598 · MAD: 0.0706

Other data (not scored)

Gross margin45.5%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.4656 · MAD: 0.1827

Return on equity12.6%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0529 · MAD: 0.1007

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ Current ratio
▲ Debt / equity
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta2.05

Yahoo Finance · 5-year monthly beta vs the marketOutlier capped at sector 5th/95th percentile33% base weight · Z-score -3.41Sector median: 0.6525 · MAD: 0.2880

Current ratio2.87×

SEC filings · latest balance sheetReported value33% base weight · Z-score 2.13Sector median: 1.3848 · MAD: 0.6948

Debt / equity0.17×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 0.61Sector median: 0.3697 · MAD: 0.3335

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Roku

Is Roku getting weaker?: Its latest SEC filing (Aug 6, 2026) got stronger: operating margin rose 3.2 points to 5.2%. Its overall score is 61/100, up 1 since Oct 28, 2026.
How is Roku valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 24/100 against 512 communication services peers. Free cash flow yield 2.9% vs a peer median of 7.4% (weaker than 75% of peers).Free cash flow yield 2.9% vs peers 7.4% (weaker than 75% of peers).
Is Roku growing?: Yes, faster than most of its peers. Growth scores 93/100 against 512 communication services peers. 3-year revenue growth 17.4% vs a peer median of 3.0% (stronger than 87% of peers).3-year revenue growth 17.4% vs peers 3.0% (stronger than 87% of peers).
How profitable is Roku?: More profitable than most of its peers. Profitability scores 78/100 against 512 communication services peers. Return on invested capital 26.3% vs a peer median of 6.0% (stronger than 88% of peers).Return on invested capital 26.3% vs peers 6.0% (stronger than 88% of peers). Operating margin 5.2% vs a peer median of 8.2% (weaker than 62% of peers).Operating margin 5.2% vs peers 8.2% (weaker than 62% of peers).
How risky is Roku?: Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.87× vs a peer median of 1.38× (stronger than 79% of peers).Current ratio 2.87× vs peers 1.38× (stronger than 79% of peers). Beta 2.05 vs a peer median of 0.65 (weaker than 100% of peers).Beta 2.05 vs peers 0.65 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Operating margin rose 3.2 points to 5.2%

	Previous quarter	Latest quarter	Change
Revenue (12 months)	5.0B USD	5.2B USD	+4.9%
Net income (12 months)	201.5M USD	355.2M USD	+76.3%
Operating margin	2.1%	5.2%	+3.2 pts
Free cash flow (12 months)	537.6M USD	709.9M USD	+32.0%
Cash	1.6B USD	2.0B USD	+21.3%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Sector: Communication Services · 67 companies

Valuations in Communication Services are within their usual range since 2016.

46% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +13% and earnings +11% (medians): earnings grew faster than prices.
Median price-to-sales is −6% vs the whole market, against a usual −7%.

2016Shaded: most expensive fifth of its range2026

Shown for Communication Services: too few Entertainment companies have a long enough history of their own.

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	51.0%	46.1%	43.7%	43.9%	43.8%	▼ 0.1 pts
Operating margin	8.5%	-17.0%	-22.7%	-5.3%	-0.1%	▲ 5.2 pts
Net margin	8.8%	-15.9%	-20.4%	-3.1%	1.9%	▲ 5.0 pts
Return on assets (ROA)	5.9%	-11.3%	-16.6%	-3.0%	2.0%	▲ 5.0 pts
Return on equity (ROE)	8.8%	-18.8%	-30.5%	-5.2%	3.3%	▲ 8.5 pts
Free cash flow margin	6.8%	-4.8%	5.0%	5.2%	10.1%	▲ 4.9 pts
Current ratio	4.19×	2.74×	2.41×	2.62×	2.75×	▲ 4.7%
Quick ratio	4.12×	2.64×	2.34×	2.50×	2.66×	▲ 6.4%
Debt to equity	0.03×	0.03×	0.00×	—	—	—
Interest coverage	—	-102.87×	-1085.45×	-530.82×	-2.95×	▲ 99%

ROKU price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: its share price swings more than most peers’ (beta 2.05 vs a peer median of 0.65)bigger price swings (beta 2.05 vs peers 0.65)

About average: risk (debt, liquidity and share-price swings)risk

Ranks #136 of 454 communication services companies (top 30%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $1.1B vs $150M spent repurchasing shares over the 3 fiscal years to 2025.

Over three fiscal years Roku recorded $1.1B of stock-based pay expense and spent $150M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Roku recorded $1.1B of stock-based pay expense and spent $150M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Earnings turned from a loss to a profit. Profit per share this year after a loss last year.

Roku made a profit per share in its latest year after a loss the year before.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $1.8B in 2020 to $4.7B in 2025.

Roku's fiscal-year revenue rose in each of the five years to 2025, from $1.8B to $4.7B.

Profit is backed by cash. Free cash flow is 200% of reported profit.

Roku's free cash flow is 200% of its reported profit, so its earnings are turning into cash it can reinvest, pay out or use to reduce debt.

Questions investors ask about Roku

Is Roku getting weaker?

Its latest SEC filing (Aug 6, 2026) got stronger: operating margin rose 3.2 points to 5.2%. Its overall score is 61/100, up 1 since Oct 28, 2026.

How is Roku valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 24/100 against 512 communication services peers. Free cash flow yield 2.9% vs a peer median of 7.4% (weaker than 75% of peers).Free cash flow yield 2.9% vs peers 7.4% (weaker than 75% of peers).

Is Roku growing?

Yes, faster than most of its peers. Growth scores 93/100 against 512 communication services peers. 3-year revenue growth 17.4% vs a peer median of 3.0% (stronger than 87% of peers).3-year revenue growth 17.4% vs peers 3.0% (stronger than 87% of peers).

How profitable is Roku?

More profitable than most of its peers. Profitability scores 78/100 against 512 communication services peers. Return on invested capital 26.3% vs a peer median of 6.0% (stronger than 88% of peers).Return on invested capital 26.3% vs peers 6.0% (stronger than 88% of peers). Operating margin 5.2% vs a peer median of 8.2% (weaker than 62% of peers).Operating margin 5.2% vs peers 8.2% (weaker than 62% of peers).

How risky is Roku?

Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.87× vs a peer median of 1.38× (stronger than 79% of peers).Current ratio 2.87× vs peers 1.38× (stronger than 79% of peers). Beta 2.05 vs a peer median of 0.65 (weaker than 100% of peers).Beta 2.05 vs peers 0.65 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

5.0B USD

5.2B USD

+4.9%

Net income (12 months)

201.5M USD

355.2M USD

+76.3%

Operating margin

2.1%

5.2%

+3.2 pts

Free cash flow (12 months)

537.6M USD

709.9M USD

+32.0%

Cash

1.6B USD

2.0B USD

+21.3%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

51.0%

46.1%

43.7%

43.9%

43.8%

▼ 0.1 pts

Operating margin

8.5%

-17.0%

-22.7%

-5.3%

-0.1%

▲ 5.2 pts

Net margin

8.8%

-15.9%

-20.4%

-3.1%

1.9%

▲ 5.0 pts

Return on assets (ROA)

5.9%

-11.3%

-16.6%

-3.0%

2.0%

▲ 5.0 pts

Return on equity (ROE)

8.8%

-18.8%

-30.5%

-5.2%

3.3%

▲ 8.5 pts

Free cash flow margin

6.8%

-4.8%

5.0%

5.2%

10.1%

▲ 4.9 pts

Current ratio

4.19×

2.74×

2.41×

2.62×

2.75×

▲ 4.7%

Quick ratio

4.12×

2.64×

2.34×

2.50×

2.66×

▲ 6.4%

Debt to equity

0.03×

0.00×

—

Interest coverage

—

-102.87×

-1085.45×

-530.82×

-2.95×

▲ 99%