Roku Reports 16% Revenue Growth to $1.02 Billion in Q1 2025

Roku, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with total net revenue reaching $1.02 billion, a 16% increase from $881.5 million in the same period last year. The platform segment, which includes revenue from digital advertising and streaming services, generated $880.8 million, up 17% from $754.9 million. The devices segment also saw growth, with revenue rising 11% to $139.9 million, primarily driven by increased sales of Roku-branded TVs, despite a slight decline in the average selling price of devices.

The company's gross profit for the quarter was $445.0 million, reflecting a 15% increase from $388.3 million in the prior year. The gross profit margin for the platform segment remained stable at 45%, while the devices segment reported a gross loss of $19.3 million, compared to a loss of $6.1 million in the previous year. Operating expenses increased to $502.8 million, up 9% from $460.3 million, driven by higher research and development, sales and marketing, and general administrative costs. Roku's net loss for the quarter was $27.4 million, an improvement from a loss of $50.9 million in the same quarter of 2024.

Roku's operational metrics showed positive trends, with streaming hours increasing by 16% to 35.8 billion hours compared to 30.8 billion hours in the prior year. The number of streaming households also grew, contributing to the overall increase in engagement on the platform. As of March 31, 2025, Roku had 129.5 million shares of Class A common stock and 17.1 million shares of Class B common stock outstanding.

Strategically, Roku announced plans to acquire Frndly TV, Inc., a subscription streaming service, for $185 million, which is expected to close in the second quarter of 2025. This acquisition aligns with Roku's strategy to expand its content offerings and enhance its competitive position in the streaming market. The company continues to focus on growing its platform revenue and profitability while managing operating expenses amid a challenging macroeconomic environment.

Looking ahead, Roku's management expressed optimism about future growth, emphasizing the importance of increasing user engagement and monetization through advertising. However, they acknowledged potential risks, including macroeconomic uncertainties, competition in the streaming industry, and the need to maintain relationships with key content partners. The company remains committed to investing in its platform and expanding its international presence to drive long-term growth.