Roku, Inc. reported its financial results for the second quarter of 2025, revealing a total net revenue of $1.11 billion, a 15% increase from $968.2 million in the same period last year. The platform segment, which includes revenue from digital advertising and streaming services, generated $975.5 million, up 18% year-over-year, while device revenue decreased by 6% to $135.6 million. The company recorded a net income of $10.5 million, compared to a net loss of $33.9 million in the prior year, marking a significant turnaround in profitability.
The financial performance reflects a notable shift in Roku's operational strategy, particularly following the acquisition of Frndly TV, a subscription streaming service, for $169.8 million in May 2025. This acquisition is expected to enhance Roku's platform revenue and subscription offerings. The company also reported an increase in average revenue per user (ARPU), driven by higher advertising revenue and growth in Premium Subscriptions, which contributed approximately 1.8 points to platform revenue growth in the quarter.
Operationally, Roku's streaming households reached 70.5 million, with streaming hours increasing by 17% to 35.4 billion hours in the second quarter. The company continues to focus on expanding its user base and engagement metrics, which are critical for monetizing its platform. However, device sales faced challenges, with a decrease in the volume of devices shipped, attributed to lower sales of streaming players, despite an increase in average selling prices.
Roku's balance sheet remains strong, with cash and cash equivalents totaling $2.25 billion as of June 30, 2025. The company has also reduced its current liabilities significantly, from $1.23 billion at the end of 2024 to $1.11 billion. Looking ahead, Roku anticipates continued growth in platform revenue, although it expects slight declines in device revenue and gross margins due to ongoing macroeconomic pressures, including tariffs and inflation. The company remains committed to investing in its platform and expanding its content offerings to drive future growth.
About ROKU, INC
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