Recent News
In October–December 2025 Roku announced a major software update that brings AI-powered voice search, enhanced discovery, and sports features to its devices. The company expanded product and ad-platform efforts internationally with a connected-TV rollout in Brazil and broadened ad-tech integrations with partners including large DSPs and FreeWheel. Roku also promoted Black Friday product pricing and continued smart‑TV licensing with OEMs such as Vestel.
Technical Analysis
Directional indicators show a meaningful trend strength: ADX stands at 28.82, indicating a strong directional move; DI+ sits at 24.92 and has been decreasing, which creates a bearish directional tilt, while DI- shows a dip-and-reversal at 12.87 that also signals bearish pressure. Together these directional cues temper short-term upside relative to valuation.
MACD registers 2.58 with a 2.56 signal line and a peak‑and‑reversal trend. The MACD currently sits just above its signal line, which constitutes a bullish cross, but the peak‑and‑reversal pattern signals emerging bearish momentum and suggests the recent bullish impetus may be fading.
MRO reads 29.83 and shows a peak‑and‑reversal, placing the current price above the model target and implying potential downside pressure as momentum normalizes versus target valuation.
RSI at 56.22 with a peak‑and‑reversal indicates waning upside momentum from a neutral-to-mildly bullish level, consistent with MACD and MRO signals pointing to diminished short‑term strength.
Price sits at $108.72, above the 200‑day average of $87.61 and the 50‑day average of $102.54, but slightly below the 20‑day average of $109.80 and the 12‑day EMA (price12dayEMA trend: peak & reversal). Bollinger band values place the stock near the middle of the short-term range (lower ~ $108.2, upper ~ $111.4–$113.0). Ichimoku components (Tenkan 110.00, Kijun 102.06, Senkou A ~102.29, Senkou B ~103.64) and a SuperTrend lower support at $102.29 show longer-term structural support even as near-term momentum softens.
Fundamental Analysis
Top-line scale: total revenue reached $1,210,638,000. Reported revenue growth measures show a mixed cadence: an overall revenue growth figure of 8.97%, quarter‑over‑quarter change of +1.25%, and year‑over‑year change of −7.68%, reflecting recent variability in growth timing and seasonality.
Profitability metrics remain compressed versus typical entertainment peers. EBIT margin stands at 3.18%, improving QoQ by about 5.88% but down YoY by 1.94%. This EBIT margin falls below the industry peer mean (25.47%) and median (21.77%) but stays above the peer low. Operating margin measures 0.78%, reflecting narrow operating leverage despite scale in platform revenue.
Earnings: reported EPS equaled $0.16 versus an estimate of $0.08, beating by $0.08 and delivering a 100% surprise ratio on that basis. Company disclosures and third‑party summaries indicate recent platform revenue acceleration and a return to positive operating income in the quarter reported, supporting the EPS beat.
Cash and capital structure: cash and short‑term investments total $2,302,366,000, and the current ratio reads 2.74 with a cash ratio near 1.89, signaling a strong near‑term liquidity position. Free cash flow reached $126,467,000 with a free cash flow yield of 0.90%, slightly above the industry peer mean of ~0.89% for the peer set provided.
Returns remain low: return on equity at 0.95% and return on assets at 0.57% both fall below the industry peer means reported. Balance-sheet leverage stays modest (debt-to-assets ~12.37%, debt-to-equity ~0.21), and interest coverage reads strongly above 80x, reflecting minimal interest burden relative to operating earnings.
Valuation context: trailing P/E registers at ~593.05 and P/S at ~11.58 while P/B sits near 5.34, which falls below the industry peer mean and median P/B values provided. Enterprise multiples show elevated figures (enterprise multiple ~99.75) driven by small trailing earnings and the company’s scale. WMDST values the stock as under‑valued, which reflects WMDST’s assessment across cash generation, platform momentum, and long‑run asset base despite elevated absolute multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-30 |
| NEXT REPORT DATE: | 2026-01-29 |
| CASH FLOW | Begin Period Cash Flow | $ 2.3 B |
| Operating Cash Flow | $ 127.6 M | |
| Capital Expenditures | $ -1.14 M | |
| Change In Working Capital | $ -66.64 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -677.78 M | |
| End Period Cash Flow | $ 1.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.2 B | |
| Forward Revenue | $ 517.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 685.7 M | |
| Depreciation | $ 31.8 M | |
| Depreciation and Amortization | $ 84.4 M | |
| Research and Development | $ 182.2 M | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 524.9 M | |
| EBITDA | $ 122.9 M | |
| EBIT | $ 38.5 M | |
| Operating Income | $ 9.5 M | |
| Interest Income | — | |
| Interest Expense | $ 455.0 K | |
| Net Interest Income | $ -455.00 K | |
| Income Before Tax | $ 38.0 M | |
| Tax Provision | $ 13.2 M | |
| Tax Rate | 34.757 % | |
| Net Income | $ 24.8 M | |
| Net Income From Continuing Operations | $ 24.8 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.08 | |
| EPS Actual | $ 0.16 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 100.0 % | |
| Forward EPS | $ 0.29 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.4 B | |
| Intangible Assets | $ 541.1 M | |
| Net Tangible Assets | $ 2.1 B | |
| Total Current Assets | $ 3.3 B | |
| Cash and Short-Term Investments | $ 2.3 B | |
| Cash | $ 1.6 B | |
| Net Receivables | $ 745.4 M | |
| Inventory | $ 140.7 M | |
| Long-Term Investments | $ 71.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 159.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.2 B | |
| Net Debt | — | |
| Total Debt | $ 543.8 M | |
| Total Liabilities | $ 1.8 B | |
| EQUITY | ||
| Total Equity | $ 2.6 B | |
| Retained Earnings | $ -1.47 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 17.77 | |
| Shares Outstanding | 147.752 M | |
| Revenue Per-Share | $ 8.19 | |
| VALUATION | Market Capitalization | $ 14.0 B |
| Enterprise Value | $ 12.3 B | |
| Enterprise Multiple | 99.745 | |
| Enterprise Multiple QoQ | -21.27 % | |
| Enterprise Multiple YoY | -36.498 % | |
| Enterprise Multiple IPRWA | high: 155.939 ROKU: 99.745 mean: 78.485 median: 69.962 low: -118.636 |
|
| EV/R | 10.128 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.675 | |
| Asset To Liability | 2.481 | |
| Debt To Capital | 0.172 | |
| Debt To Assets | 0.124 | |
| Debt To Assets QoQ | -6.636 % | |
| Debt To Assets YoY | 583.96 % | |
| Debt To Assets IPRWA | high: 1.022 median: 0.263 mean: 0.237 ROKU: 0.124 low: 0.013 |
|
| Debt To Equity | 0.207 | |
| Debt To Equity QoQ | -5.381 % | |
| Debt To Equity YoY | 554.916 % | |
| Debt To Equity IPRWA | high: 7.122 mean: 0.617 median: 0.557 ROKU: 0.207 low: -4.611 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.341 | |
| Price To Book QoQ | 8.615 % | |
| Price To Book YoY | 50.989 % | |
| Price To Book IPRWA | high: 25.535 median: 19.682 mean: 17.346 ROKU: 5.341 low: -2.514 |
|
| Price To Earnings (P/E) | 593.049 | |
| Price To Earnings QoQ | -49.537 % | |
| Price To Earnings YoY | -159.364 % | |
| Price To Earnings IPRWA | ROKU: 593.049 high: 399.099 mean: 189.56 median: 188.737 low: -138.317 |
|
| PE/G Ratio | 4.613 | |
| Price To Sales (P/S) | 11.581 | |
| Price To Sales QoQ | 1.008 % | |
| Price To Sales YoY | 41.337 % | |
| Price To Sales IPRWA | high: 44.379 median: 44.379 mean: 35.735 ROKU: 11.581 low: 1.121 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | -582.053 | |
| Forward PE/G | -4.527 | |
| Forward P/S | -49.39 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 72.48 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.279 | |
| Asset Turnover Ratio QoQ | 6.234 % | |
| Asset Turnover Ratio YoY | 10.409 % | |
| Asset Turnover Ratio IPRWA | high: 0.675 ROKU: 0.279 mean: 0.221 median: 0.191 low: 0.052 |
|
| Receivables Turnover | 1.762 | |
| Receivables Turnover Ratio QoQ | 1.413 % | |
| Receivables Turnover Ratio YoY | 16.062 % | |
| Receivables Turnover Ratio IPRWA | high: 8.376 mean: 6.447 median: 5.21 ROKU: 1.762 low: 1.288 |
|
| Inventory Turnover | 5.413 | |
| Inventory Turnover Ratio QoQ | 9.421 % | |
| Inventory Turnover Ratio YoY | 33.693 % | |
| Inventory Turnover Ratio IPRWA | high: 107.438 median: 107.438 mean: 77.712 low: 9.984 ROKU: 5.413 |
|
| Days Sales Outstanding (DSO) | 51.777 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 46.418 | |
| Cash Conversion Cycle Days QoQ | 6.494 % | |
| Cash Conversion Cycle Days YoY | 38.152 % | |
| Cash Conversion Cycle Days IPRWA | high: 68.402 ROKU: 46.418 mean: -9.712 median: -14.595 low: -91.156 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.573 | |
| CapEx To Revenue | -0.001 | |
| CapEx To Depreciation | -0.036 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.6 B | |
| Net Invested Capital | $ 2.6 B | |
| Invested Capital | $ 2.6 B | |
| Net Tangible Assets | $ 2.1 B | |
| Net Working Capital | $ 2.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 1.894 | |
| Current Ratio | 2.739 | |
| Current Ratio QoQ | -3.907 % | |
| Current Ratio YoY | 6.624 % | |
| Current Ratio IPRWA | ROKU: 2.739 high: 2.085 mean: 1.411 median: 1.168 low: 0.309 |
|
| Quick Ratio | 2.623 | |
| Quick Ratio QoQ | -4.563 % | |
| Quick Ratio YoY | 8.637 % | |
| Quick Ratio IPRWA | ROKU: 2.623 high: 2.081 median: 2.081 mean: 1.712 low: 0.287 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.424 | |
| Cost Of Debt | 0.053 % | |
| Interest Coverage Ratio | 84.582 | |
| Interest Coverage Ratio QoQ | 657.995 % | |
| Interest Coverage Ratio YoY | -102.365 % | |
| Interest Coverage Ratio IPRWA | ROKU: 84.582 high: 18.738 mean: 17.172 median: 10.09 low: -9.125 |
|
| Operating Cash Flow Ratio | -0.035 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 24.206 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.693 % | |
| Revenue Growth | 8.965 % | |
| Revenue Growth QoQ | 1.254 % | |
| Revenue Growth YoY | -7.682 % | |
| Revenue Growth IPRWA | high: 22.255 % ROKU: 8.965 % mean: 3.722 % median: 1.884 % low: -14.52 % |
|
| Earnings Growth | 128.571 % | |
| Earnings Growth QoQ | -193.956 % | |
| Earnings Growth YoY | -271.428 % | |
| Earnings Growth IPRWA | ROKU: 128.571 % high: 104.0 % mean: -10.145 % median: -18.359 % low: -125.0 % |
|
| MARGINS | ||
| Gross Margin | 43.357 % | |
| Gross Margin QoQ | -3.204 % | |
| Gross Margin YoY | -4.069 % | |
| Gross Margin IPRWA | high: 86.351 % median: 44.647 % ROKU: 43.357 % mean: 42.826 % low: 10.643 % |
|
| EBIT Margin | 3.179 % | |
| EBIT Margin QoQ | 588.095 % | |
| EBIT Margin YoY | -194.416 % | |
| EBIT Margin IPRWA | high: 32.152 % mean: 25.471 % median: 21.774 % ROKU: 3.179 % low: -24.848 % |
|
| Return On Sales (ROS) | 0.782 % | |
| Return On Sales QoQ | -137.238 % | |
| Return On Sales YoY | -123.225 % | |
| Return On Sales IPRWA | high: 28.22 % median: 28.016 % mean: 23.876 % ROKU: 0.782 % low: -24.352 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 126.5 M | |
| Free Cash Flow Yield | 0.902 % | |
| Free Cash Flow Yield QoQ | 5.744 % | |
| Free Cash Flow Yield YoY | 16.088 % | |
| Free Cash Flow Yield IPRWA | high: 5.262 % ROKU: 0.902 % mean: 0.886 % median: 0.521 % low: -14.855 % |
|
| Free Cash Growth | 16.44 % | |
| Free Cash Growth QoQ | -179.779 % | |
| Free Cash Growth YoY | -91.783 % | |
| Free Cash Growth IPRWA | high: 973.24 % mean: 45.793 % median: 17.337 % ROKU: 16.44 % low: -740.0 % |
|
| Free Cash To Net Income | 5.097 | |
| Cash Flow Margin | -3.483 % | |
| Cash Flow To Earnings | -1.7 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.572 % | |
| Return On Assets QoQ | 130.645 % | |
| Return On Assets YoY | -366.047 % | |
| Return On Assets IPRWA | high: 6.386 % mean: 4.431 % median: 2.024 % ROKU: 0.572 % low: -10.786 % |
|
| Return On Capital Employed (ROCE) | 1.21 % | |
| Return On Equity (ROE) | 0.009 | |
| Return On Equity QoQ | 133.333 % | |
| Return On Equity YoY | -357.493 % | |
| Return On Equity IPRWA | high: 0.229 mean: 0.094 median: 0.026 ROKU: 0.009 low: -0.066 |
|
| DuPont ROE | 0.951 % | |
| Return On Invested Capital (ROIC) | 0.956 % | |
| Return On Invested Capital QoQ | 508.917 % | |
| Return On Invested Capital YoY | -50.924 % | |
| Return On Invested Capital IPRWA | high: 6.929 % mean: 6.109 % median: 2.594 % ROKU: 0.956 % low: -5.58 % |
|