Roku (NASDAQ:ROKU) Releases Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Roku (NASDAQ:ROKU) posted its quarterly earnings results on Thursday. The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25, FiscalAI reports. The firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.

Roku Trading Down 5.6%

Shares of ROKU stock traded down $4.96 during trading hours on Thursday, hitting $82.93. The company’s stock had a trading volume of 11,257,894 shares, compared to its average volume of 3,488,196. The business has a fifty day moving average of $104.38 and a 200-day moving average of $98.99. Roku has a twelve month low of $52.43 and a twelve month high of $116.66. The stock has a market cap of $12.25 billion, a price-to-earnings ratio of -414.63 and a beta of 1.99.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on ROKU shares. Oppenheimer set a $105.00 target price on shares of Roku and gave the stock an “outperform” rating in a research report on Friday, February 6th. Bank of America raised their price objective on shares of Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Benchmark restated a “buy” rating on shares of Roku in a research report on Wednesday, February 4th. Arete Research set a $132.00 price target on shares of Roku and gave the company a “buy” rating in a research report on Monday, January 5th. Finally, JPMorgan Chase & Co. boosted their price target on Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $118.72.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat Q4 estimates — EPS of $0.53 vs. $0.28 consensus and revenue of $1.39B vs. $1.35B expected, a clear near-term earnings beat that supports the ad/streaming growth story. Roku Stock Rallies After Q4 Earnings: Here’s Why
• Positive Sentiment: Management forecasted full-year revenue above Street estimates, citing an expected rebound in digital advertising and a shift to ad-supported streaming — guidance that underpins upside to the top line. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Roku signaled product/monetization expansion with plans to roll out premium subscription bundles, which could increase ARPU and diversify revenue beyond ads. Roku Breezes Past Wall Street’s Q4 Earnings Outlook, Signals Plan For Premium Subscription Bundles
• Positive Sentiment: Analyst sentiment improved — Zacks upgraded Roku to a “Strong Buy,” which can attract some buying interest from retail and quant strategies. Zacks.com
• Neutral Sentiment: Ongoing content and platform moves (more free channels, expanded local-news access) increase user value and engagement, but the immediate revenue impact is uncertain. How to watch local news on Roku for free
• Negative Sentiment: Despite the beat, shares have decreased today — likely from profit-taking after the run-up, high trading volume, and investors re‑rating expectations; short-term volatility is common after mixed headlines. MarketBeat ROKU quote & stats
• Negative Sentiment: Institutional trimming and lingering fundamentals: Allianz reduced its ROKU position and the company still shows a negative net margin/negative ROE and a negative forward EPS expectation, which can cap multiple expansion. Allianz reduces Roku holdings
• Negative Sentiment: Consumer/legal noise (reports of device issues/lawsuits) is present; while not core to earnings, such items can create headline risk if they escalate. Lawsuit report

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 3,000 shares of the company’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $107.56, for a total value of $322,680.00. Following the sale, the chief financial officer directly owned 87,267 shares in the company, valued at $9,386,438.52. This represents a 3.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total value of $192,960.00. Following the sale, the director directly owned 7,782 shares in the company, valued at approximately $750,807.36. The trade was a 20.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 184,790 shares of company stock worth $19,685,259 in the last quarter. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. Larson Financial Group LLC grew its holdings in shares of Roku by 32.1% during the third quarter. Larson Financial Group LLC now owns 556 shares of the company’s stock worth $56,000 after buying an additional 135 shares in the last quarter. Rakuten Securities Inc. lifted its stake in shares of Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after buying an additional 158 shares during the period. Parallel Advisors LLC boosted its position in Roku by 12.9% during the third quarter. Parallel Advisors LLC now owns 1,597 shares of the company’s stock worth $160,000 after acquiring an additional 182 shares during the last quarter. Xponance LLC grew its stake in Roku by 3.9% in the 4th quarter. Xponance LLC now owns 8,502 shares of the company’s stock worth $922,000 after acquiring an additional 322 shares during the period. Finally, Utah Retirement Systems grew its stake in Roku by 1.7% in the 3rd quarter. Utah Retirement Systems now owns 21,201 shares of the company’s stock worth $2,123,000 after acquiring an additional 357 shares during the period. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.