Roku, Inc. delivered a robust second quarter in 2025, significantly beating expectations and prompting a full-year guidance raise, according to its July 31 shareholder letter. Total net revenue rose 15% year-over-year to $1.11 billion, driven primarily by a surge in platform revenue, which increased 18% year-over-year to $975 million. The strong performance was largely attributed to video advertising and the contribution of the recently acquired Frndly streaming service, which accounted for 1.8 points of that growth.
Gross profit climbed 17% year-over-year to $498 million, as total streaming hours reached 35.4 billion, up 5.2 billion from the previous year. The Roku Channel continued its strong showing, remaining the second most engaged app on the platform in the U.S. and ranking third globally by reach. According to Nielsen's The Gauge, it captured 5.4% of all TV streaming time in the U.S. during June.
The company emphasized the rapid growth of its advertising business. Roku's video advertising revenue outpaced both overall Platform growth and the broader U.S. OTT and digital ad markets. Roku has deepened its programmatic ad capabilities through integrations with Amazon DSP, Wurl, and Unity via Roku Exchange, and maintains partnerships with The Trade Desk, Yahoo, and others. These integrations aim to boost incremental reach and campaign performance. “We are making ad buying on Roku easier for the biggest brands in the world,” the company stated, highlighting that small and medium businesses are also being served via Roku Ads Manager.
Direct-to-consumer brands are leveraging the platform for performance-driven outcomes. For example, DTC supplement company fatty15 achieved over a 30% cart-add conversion rate by utilizing Roku Ads Manager and shoppable ad formats integrated with Shopify. Separately, Rollo, a shipping platform, repurposed social media content into TV-ready ads using Roku’s Spaceback integration—winning a Programmatic Impact Award from AdExchanger.
Streaming services distribution also showed momentum, driven by higher premium subscription sign-ups and the impact of 2024 price increases. Roku-billed subscriptions grew through features like AI-powered content rows, live TV guides, and strategic campaigns, including a partnership with Disney for the season two premiere of “Andor” and promotions around Streaming Day, which generated sign-ups for over 20 SVOD and DTC services.
On the content front, older series such as “Army Wives,” “Las Vegas,” and “Married… With Children” became top performers thanks to features like Featured Free. Sports programming also expanded, with “MLB Sunday Leadoff” returning for a second year. Roku reported a more than 40% year-over-year increase in average reach for the first seven games and rolled out a new Roku Original with MLB Studios titled “Going, Going, Gone: The Magic of the Home Run.”
Despite a 6% year-over-year decline in Devices revenue to $136 million, Roku maintained its position as the number one selling TV operating system in the U.S., Canada, and Mexico. In fact, its market share in the U.S. outpaces the combined share of the second and third ranked TV OS providers. Roku also expanded its Roku-branded TV line to Canada through an exclusive partnership with Best Buy and launched its most compact and power-efficient streaming players to date. The Roku Streaming Stick and Streaming Stick Plus are 35% smaller than competing products and powered directly via TV USB, cutting material costs without sacrificing performance. The models earned top recognition from GQ and Tom’s Guide.
Roku now forecasts full-year 2025 Platform revenue to hit $4.075 billion and Adjusted EBITDA to reach $375 million. In the third quarter alone, Platform revenue is expected to grow 16% year-over-year with gross margin around 51%, contributing to an estimated $520 million in gross profit and $110 million in Adjusted EBITDA.
The company’s financial strength is further underscored by a $2.3 billion cash position as of June 30 and the approval of a $400 million stock repurchase program aimed at reducing share dilution and enhancing shareholder value. Roku’s leadership reaffirmed its long-term strategy, stating: “Our monetization initiatives position Roku to sustain double-digit Platform revenue growth while increasing profitability.”
With deepening platform integrations, rising ad demand, expanding content partnerships, and a growing device footprint, Roku continues to assert itself as a central player in the connected TV ecosystem.