Roku, Inc.(ROKU) - Stock detail

Roku, Inc.

US
ROKU
Roku, Inc.(Listing date: 09/28/2017)

Roku, Inc. was originally established as a limited liability company in Delaware in October 2002 and subsequently registered in Delaware in February 2008. The company pioneered television programming. Roku, Inc. connects users with the streaming content they love, enables content publishers to build and monetize among a large audience, and provides advertisers with unique capabilities to engage consumers. The company is now large in scale. The disruptive content distribution model of TV streaming is changing billions of dollars in economic value. Roku, Inc. is capitalizing on this enormous economic opportunity by providing a leading TV streaming platform for users, content publishers, and advertisers.

AI Value AnalystHold
Overall Rating5.3/10
Generated at:2026-05-07 17:41:32
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, 2024-12-31. Data includes real-time and fundamental data for Roku, Inc. (ROKU). Most recent closing price as of 2026-05-07.
Overview

Roku, Inc. is a leading TV streaming platform operator showing signs of financial stabilization after achieving annual profitability in FY 2025. The company demonstrates strong liquidity, consistent revenue growth, and a successful transition to a platform-centric model. However, its valuation multiples are exceptionally high, reflecting significant market expectations for future growth.

Valuation
3/10
Profitability
6/10
Financial health
7/10
Operation Advice
  • Hold existing positions; new money should wait for better entry points on market volatility or clearer evidence of accelerating profitability.
  • Consider buying if the stock pulls back to the lower end of the valuation range ($90-$110) or if the company demonstrates accelerating net margin expansion and sustains >15% revenue growth.

Valuation

P/E TTM
85.72
P/E LYR
-114.72
P/B MRQ
6.47
P/S TTM
--
AI Analysis
  • Valuation metrics are exceptionally high, with a TTM P/E of 93.81 and P/B of 7.08, indicating the market prices in significant future earnings growth. The current price of $126.67 is near the upper end of the recent trading range and aligns with the upper bound of a reasonable base case valuation.
  • The trailing twelve-month (TTM) P/E ratio is 93.81, which is exceptionally high by traditional value standards.
  • The P/B ratio of 7.08 is high, suggesting the market values the company's assets far above their accounting book value.
  • The P/S ratio of 3.95 is within a reasonable range for a growing platform company in the streaming sector.
  • The most recent closing price is $126.67, trading near the upper end of the recent 60-day range of approximately $84.42 to $129.85.
  • Base Case (Hold Scenario): Assuming current growth and margin trajectory, a reasonable P/E compression towards 70-80x could support a price range of $115 - $135.
  • Bull Case (Buy Scenario): If Roku demonstrates accelerating net margin expansion and sustains >15% revenue growth, target range could be $135 - $150.
  • Bear Case (Sell Scenario): A reversion to quarterly losses or significant slowdown in revenue growth could drive the price towards $90 - $110.
Valuation trend

Profitability

ROE TTM
7.74%
Net margin
6.86%
Gross margin
45.24%
Total revenue
1.25B
AI Analysis
  • Profitability metrics show a company in transition, with a pivotal turnaround to annual net income of $88.36M in 2025 after a loss in 2024. Gross margin is healthy at 43.79%, and revenue growth remains robust at 15.18% year-over-year.
  • The most recent annual report (2025-12-31) marks a pivotal turnaround with net income of $88.36M in 2025, representing 168.29% year-over-year growth.
  • Return on Equity (ROE) is 3.43% and Return on Assets (ROA) is 2.02% (TTM), positive but modest.
  • Gross margin of 43.79% (FY 2025) is healthy for a platform business.
  • Net margin swung from -7.17% in 2024 to +1.87% in 2025, demonstrating significant progress in controlling costs and scaling revenue.
  • Revenue growth remains robust, with annual revenue increasing 15.18% year-over-year to $4.74B in 2025, following 18.59% growth the prior year.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM---0.67%0.31%3.43%7.74%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue445.05M942.70M1.47B4.74B1.25B

Financial health

Debt/Asset
38.63%
Current ratio
2.91
Quick ratio
2.82
Cash ratio
2.82
AI Analysis
  • Financial health shows signs of stabilization with strong liquidity (current ratio 2.75, quick ratio 2.66) and a moderate debt-to-asset ratio of 40.05%. The company has achieved a critical positive development by returning to annual profitability.
  • The current ratio of 2.75 and quick ratio of 2.66 are strong, indicating Roku has ample short-term assets to cover its immediate liabilities.
  • The debt-to-asset ratio of 40.05% is at a moderate level, suggesting a balanced capital structure without excessive reliance on debt financing.
  • After reporting a net loss of -$129.39M in 2024, Roku achieved a net income of $88.36M in 2025, representing a 168.29% year-over-year growth.
  • This shift from consistent quarterly losses in early 2025 to annual profitability is a critical positive development.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset39.57%39.50%40.30%40.05%38.63%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio2.862.852.742.752.91