Roku Revenue Climbs 24% as Fox Deal Advances

Roku posted $183 million in net income for the July-to-September quarter, more than seven times its result a year earlier. Diluted earnings per share reached $1.20, topping analysts’ forecast of 55 cents, while revenue exceeded their $1.41 billion estimate. Gross profit rose 24% to $649 million.

The company’s Platform segment brought in $1.3 billion. Advertising revenue increased 23% to about $727 million, and subscription revenue also rose 23%, to $581 million. Roku said advertising from political campaigns exceeded the level in the comparable quarter of the 2024 U.S. presidential election cycle. Media and entertainment advertising had its strongest year-over-year growth in four years.

Viewers streamed 39.9 billion hours on Roku devices and TVs, up 9% from a year earlier. Devices revenue grew 33% to $194 million, but that segment recorded a $48.6 million operating loss, with higher memory costs contributing to the result.

Fox agreed in June to acquire Roku in a deal valued at $22 billion. The transaction has shareholder approval and has cleared foreign regulatory reviews, Fox CEO Lachlan Murdoch said; the U.S. Department of Justice is reviewing it. The companies expect it to close in the first half of 2027.

Roku did not issue financial guidance or hold an earnings call, citing the pending transaction. CEO Anthony Wood and CFO and COO Dan Jedda said the deal could help the company expand and invest more quickly. Wood is expected to have a continuing role in the combined company and join the Fox board.