Roku, Inc. has recently released its 10-Q report, providing a detailed overview of its business operations and financial performance. The company operates a TV streaming platform in the United States and internationally, with two primary segments: Platform and Devices. The Platform segment generates revenue from digital advertising, streaming services distribution, and other related services, while the Devices segment focuses on the sale of streaming players, Roku-branded TVs, smart home products, audio products, and accessories.
In the report, Roku, Inc. highlighted its key performance metrics and non-GAAP measures. The company reported an increase in Streaming Hours, with 36.5 billion hours streamed during the three months ended September 30, 2025, representing a 14% increase from the same period in 2024. Platform Revenue also saw growth, reaching $1,064.6 million for the three months ended September 30, 2025, compared to $908.2 million in the same period in 2024.
Adjusted EBITDA, a non-GAAP financial measure used to evaluate the company's ongoing operational performance, increased to $116.9 million for the three months ended September 30, 2025, compared to $98.2 million in the same period in 2024. Free Cash Flow also showed significant improvement, reaching $443.0 million for the trailing twelve months ended September 30, 2025, compared to $157.3 million in the same period in 2024.
The report also provided insights into the components of results of operations, including revenue breakdown, cost of revenue, operating expenses, and other income. It revealed that Platform Revenue accounted for 88% of total net revenue, while Devices Revenue contributed 12% for the three months ended September 30, 2025. The company's gross profit margin for the same period was 43%, with Platform Revenue accounting for 45% and Devices Revenue at a loss of 2%.
Additionally, the report compared the financial performance for the three and nine months ended September 30, 2025, with the corresponding periods in 2024. It showed positive growth in net revenue, Adjusted EBITDA, and Free Cash Flow, reflecting the company's continued efforts to drive growth and profitability. The market has reacted to these announcements by moving the company's shares 1.44% to a price of $100.03. For the full picture, make sure to review ROKU, INC's 10-Q report.
