Recent News
Sep 17, 2026 — Roku introduced “Roku Labs,” a U.S. rollout of experimental, in-development apps and a wider homescreen update intended to surface new features and subscription-bundling options to viewers; coverage emphasizes product testing and homescreen changes. Sep 17, 2026 — industry press detailed Roku Labs as an engineer-driven channel for early features and interactive content. Retail listings show ongoing expansion of Roku-made TVs in Canada through Best Buy, with multiple Roku Select and Plus Series models available this year.
Technical Analysis
Directional indicators: ADX registers 24.45, signaling an emerging trend strength; the directional movement picture shows DI- at 24.68 and increasing while DI+ reads 23.59 and displays a peak-and-reversal. That combination points to bearish directional pressure building against the current trend strength, which reduces the margin for bullish continuation despite longer-term price support.
MACD and momentum: MACD sits at 0.84 while the MACD signal line reads 1.55 and MACD trend decreases, producing bearish momentum because MACD remains below its signal line and declines. MRO stands at 21.7 and trends downward; the positive MRO indicates price currently sits above the model target and therefore carries pressure toward contraction in price—momentum strength shows moderation rather than acceleration.
Price relative to averages and bands: the last close at $154.25 sits slightly below the 20-day average ($155.31) and the 12-day EMA shows a peak-and-reversal, signaling short-term exhaustion. Price remains above the 50-day average ($151.70) and well above the 200-day average ($121.30), which supports a constructive intermediate bias even as short-term momentum cools. Bollinger upper bands at ~$157 place near-term resistance above current price while the super-trend upper at $158.22 marks a higher resistance threshold.
RSI and volatility: RSI measures 59.66 and trends down, indicating loss of upward conviction without reaching overbought territory. Short-term beta (42-day) sits at 0.17, indicating muted correlation with market moves in the past six weeks, while the 52-week beta at 1.49 reflects higher long-run sensitivity. Volume at 1,318,144 trails the 10-day average (~2.1M) and the 200-day average (~3.3M), suggesting below-average participation during the recent pullback.
Fundamental Analysis
Revenue and margins: total revenue equals $1,354,690,000 with revenue growth reported at 8.47% while year-over-year revenue growth reads -4.31%. Gross margin measures 49.73%, which sits above the industry peer mean of 46.30% and signals healthy product mix or pricing power. Operating margin stands at 10.79% and EBIT margin at 12.54%, both below the industry peer mean (operating peer mean ~26.89% and EBIT peer mean ~27.75%), indicating profit conversion lags top-tier peers despite improving absolute margins.
Earnings and cash flow: reported EPS came in at $1.20 versus an estimate of $0.56, an EPS surprise of roughly +114.29%. Forward EPS reads $0.98 with forward P/E ~128.31 versus trailing P/E ~111.84, implying market expectations priced into forward profitability. Operating cash flow equals $284,644,000 and free cash flow equals $280,874,000; free cash flow yield calculates to ~1.42% and free cash flow to net income runs 1.71x, reflecting strong cash conversion relative to reported earnings.
Balance sheet and leverage: cash and short-term investments total $2,557,202,000 and the cash ratio stands at 2.03 with a current ratio of 2.87 and quick ratio of 2.77, signaling ample short-term liquidity. Total debt measures $474,118,000 with debt-to-equity at 0.168 and debt-to-EBITDA near 1.89, marking conservative leverage that preserves flexibility for content, product, or ad-tech investment.
Operational efficiency and returns: asset turnover sits at 0.3036 while return on equity equals 5.82% and return on invested capital at ~5.83%, showing modest capital efficiency against high-margin platform economics. EBIT margin QoQ improved ~75.42% and EBIT margin YoY improved ~26.14%, indicating recent margin expansion from operating leverage and mix shifts. WMDST values the stock as under-valued based on these cash-flow dynamics, margin expansion, and liquidity metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-06 |
| NEXT REPORT DATE: | 2026-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 1.6 B |
| Operating Cash Flow | $ 284.6 M | |
| Capital Expenditures | $ -3.77 M | |
| Change In Working Capital | $ -29.96 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 351.9 M | |
| End Period Cash Flow | $ 2.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.4 B | |
| Forward Revenue | $ 298.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 681.0 M | |
| Depreciation | $ 26.4 M | |
| Depreciation and Amortization | $ 81.2 M | |
| Research and Development | $ 179.7 M | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 673.7 M | |
| EBITDA | $ 251.1 M | |
| EBIT | $ 169.9 M | |
| Operating Income | $ 146.2 M | |
| Interest Income | — | |
| Interest Expense | $ 475.0 K | |
| Net Interest Income | $ -475.00 K | |
| Income Before Tax | $ 169.4 M | |
| Tax Provision | $ 5.2 M | |
| Tax Rate | 3.055 % | |
| Net Income | $ 164.2 M | |
| Net Income From Continuing Operations | $ 164.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 1.20 | |
| EPS Difference | $ 0.64 | |
| EPS Surprise | 114.286 % | |
| Forward EPS | $ 0.98 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.6 B | |
| Intangible Assets | $ 503.5 M | |
| Net Tangible Assets | $ 2.3 B | |
| Total Current Assets | $ 3.6 B | |
| Cash and Short-Term Investments | $ 2.6 B | |
| Cash | $ 2.0 B | |
| Net Receivables | $ 776.6 M | |
| Inventory | $ 116.4 M | |
| Long-Term Investments | $ 70.1 M | |
| LIABILITIES | ||
| Accounts Payable | $ 167.2 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.3 B | |
| Net Debt | — | |
| Total Debt | $ 474.1 M | |
| Total Liabilities | $ 1.7 B | |
| EQUITY | ||
| Total Equity | $ 2.8 B | |
| Retained Earnings | $ -1.40 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 19.13 | |
| Shares Outstanding | 147.584 M | |
| Revenue Per-Share | $ 9.18 | |
| VALUATION | Market Capitalization | $ 19.8 B |
| Enterprise Value | $ 17.7 B | |
| Enterprise Multiple | 70.587 | |
| Enterprise Multiple QoQ | -11.851 % | |
| Enterprise Multiple YoY | -44.285 % | |
| Enterprise Multiple IPRWA | high: 119.928 ROKU: 70.587 mean: 53.669 median: 40.047 low: -75.887 |
|
| EV/R | 13.083 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.619 | |
| Asset To Liability | 2.614 | |
| Debt To Capital | 0.144 | |
| Debt To Assets | 0.104 | |
| Debt To Assets QoQ | -9.937 % | |
| Debt To Assets YoY | -21.714 % | |
| Debt To Assets IPRWA | high: 0.959 median: 0.245 mean: 0.222 ROKU: 0.104 low: 0.003 |
|
| Debt To Equity | 0.168 | |
| Debt To Equity QoQ | -10.495 % | |
| Debt To Equity YoY | -23.3 % | |
| Debt To Equity IPRWA | high: 7.296 mean: 0.548 median: 0.475 ROKU: 0.168 low: -5.311 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.015 | |
| Price To Book QoQ | 23.971 % | |
| Price To Book YoY | 42.668 % | |
| Price To Book IPRWA | high: 17.38 median: 11.325 mean: 10.677 ROKU: 7.015 low: -3.142 |
|
| Price To Earnings (P/E) | 111.84 | |
| Price To Earnings QoQ | -37.708 % | |
| Price To Earnings YoY | -90.483 % | |
| Price To Earnings IPRWA | high: 185.822 mean: 116.209 ROKU: 111.84 median: 98.237 low: -74.671 |
|
| PE/G Ratio | 1.012 | |
| Price To Sales (P/S) | 14.621 | |
| Price To Sales QoQ | 20.808 % | |
| Price To Sales YoY | 27.527 % | |
| Price To Sales IPRWA | high: 27.187 median: 27.187 mean: 21.935 ROKU: 14.621 low: 0.205 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 128.31 | |
| Forward PE/G | 1.161 | |
| Forward P/S | 68.237 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 10.656 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.304 | |
| Asset Turnover Ratio QoQ | 6.786 % | |
| Asset Turnover Ratio YoY | 15.602 % | |
| Asset Turnover Ratio IPRWA | high: 0.478 ROKU: 0.304 mean: 0.231 median: 0.203 low: 0.001 |
|
| Receivables Turnover | 1.772 | |
| Receivables Turnover Ratio QoQ | 15.798 % | |
| Receivables Turnover Ratio YoY | 1.955 % | |
| Receivables Turnover Ratio IPRWA | high: 9.497 mean: 6.129 median: 4.278 ROKU: 1.772 low: 0.993 |
|
| Inventory Turnover | 6.256 | |
| Inventory Turnover Ratio QoQ | -1.246 % | |
| Inventory Turnover Ratio YoY | 26.464 % | |
| Inventory Turnover Ratio IPRWA | high: 68.274 median: 68.274 mean: 42.87 ROKU: 6.256 low: 1.139 |
|
| Days Sales Outstanding (DSO) | 51.502 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 46.66 | |
| Cash Conversion Cycle Days QoQ | -16.422 % | |
| Cash Conversion Cycle Days YoY | 7.049 % | |
| Cash Conversion Cycle Days IPRWA | high: 70.643 ROKU: 46.66 mean: -27.083 median: -45.748 low: -92.812 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.577 | |
| CapEx To Revenue | -0.003 | |
| CapEx To Depreciation | -0.143 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.8 B | |
| Net Invested Capital | $ 2.8 B | |
| Invested Capital | $ 2.8 B | |
| Net Tangible Assets | $ 2.3 B | |
| Net Working Capital | $ 2.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.032 | |
| Current Ratio | 2.866 | |
| Current Ratio QoQ | -1.51 % | |
| Current Ratio YoY | 0.571 % | |
| Current Ratio IPRWA | ROKU: 2.866 high: 2.112 mean: 1.323 median: 1.049 low: 0.412 |
|
| Quick Ratio | 2.774 | |
| Quick Ratio QoQ | -1.737 % | |
| Quick Ratio YoY | 0.925 % | |
| Quick Ratio IPRWA | ROKU: 2.774 high: 1.74 median: 1.74 mean: 1.369 low: 0.602 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.888 | |
| Cost Of Debt | 0.094 % | |
| Interest Coverage Ratio | 357.613 | |
| Interest Coverage Ratio QoQ | 149.975 % | |
| Interest Coverage Ratio YoY | 3104.788 % | |
| Interest Coverage Ratio IPRWA | ROKU: 357.613 high: 24.158 mean: 20.974 median: 6.449 low: -23.647 |
|
| Operating Cash Flow Ratio | 0.199 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 19.365 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.052 % | |
| Revenue Growth | 8.472 % | |
| Revenue Growth QoQ | -180.932 % | |
| Revenue Growth YoY | -4.314 % | |
| Revenue Growth IPRWA | high: 13.148 % ROKU: 8.472 % mean: 3.705 % median: 2.278 % low: -12.664 % |
|
| Earnings Growth | 110.526 % | |
| Earnings Growth QoQ | 1364.502 % | |
| Earnings Growth YoY | -180.769 % | |
| Earnings Growth IPRWA | high: 150.0 % ROKU: 110.526 % mean: -33.425 % median: -45.833 % low: -156.757 % |
|
| MARGINS | ||
| Gross Margin | 49.731 % | |
| Gross Margin QoQ | 9.939 % | |
| Gross Margin YoY | 11.027 % | |
| Gross Margin IPRWA | high: 85.336 % ROKU: 49.731 % mean: 46.303 % median: 45.815 % low: 7.281 % |
|
| EBIT Margin | 12.539 % | |
| EBIT Margin QoQ | 75.42 % | |
| EBIT Margin YoY | 2614.069 % | |
| EBIT Margin IPRWA | high: 34.389 % median: 27.938 % mean: 27.747 % ROKU: 12.539 % low: -13.785 % |
|
| Return On Sales (ROS) | 10.79 % | |
| Return On Sales QoQ | 160.314 % | |
| Return On Sales YoY | -613.81 % | |
| Return On Sales IPRWA | high: 33.381 % median: 30.303 % mean: 26.891 % ROKU: 10.79 % low: -17.147 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 280.9 M | |
| Free Cash Flow Yield | 1.418 % | |
| Free Cash Flow Yield QoQ | 9.329 % | |
| Free Cash Flow Yield YoY | 66.237 % | |
| Free Cash Flow Yield IPRWA | high: 11.579 % ROKU: 1.418 % mean: 1.005 % median: 0.447 % low: -13.925 % |
|
| Free Cash Growth | 43.299 % | |
| Free Cash Growth QoQ | -48.417 % | |
| Free Cash Growth YoY | -310.118 % | |
| Free Cash Growth IPRWA | high: 82.132 % ROKU: 43.299 % mean: -57.282 % median: -70.06 % low: -580.645 % |
|
| Free Cash To Net Income | 1.71 | |
| Cash Flow Margin | 18.483 % | |
| Cash Flow To Earnings | 1.525 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.68 % | |
| Return On Assets QoQ | 88.621 % | |
| Return On Assets YoY | 1383.871 % | |
| Return On Assets IPRWA | high: 5.694 % mean: 4.587 % median: 4.056 % ROKU: 3.68 % low: -5.422 % |
|
| Return On Capital Employed (ROCE) | 5.125 % | |
| Return On Equity (ROE) | 0.058 | |
| Return On Equity QoQ | 81.297 % | |
| Return On Equity YoY | 1336.049 % | |
| Return On Equity IPRWA | high: 0.239 mean: 0.099 median: 0.065 ROKU: 0.058 low: -0.065 |
|
| DuPont ROE | 5.978 % | |
| Return On Invested Capital (ROIC) | 5.832 % | |
| Return On Invested Capital QoQ | 80.501 % | |
| Return On Invested Capital YoY | 3614.65 % | |
| Return On Invested Capital IPRWA | high: 8.019 % mean: 7.013 % median: 6.572 % ROKU: 5.832 % low: -3.572 % |
|