Roku(US:ROKU)2025-10-30 20:05Financial Performance - Q3 2025 total net revenue reached $1.211 billion, up 14% year-over-year (YoY) [4] - Gross profit for Q3 2025 was $525 million, an increase of 9% YoY [4] - Net income for Q3 2025 was $24.81 million, a significant recovery from a net loss of $9.03 million in Q3 2024 [37] - Net income for the nine months ended September 30, 2025, was $7,884,000, a significant improvement from a net loss of $93,838,000 in the same period of 2024 [41] - Adjusted EBITDA for the nine months ended September 30, 2025, was $251,146,000, up from $182,710,000 in 2024, representing a year-over-year increase of about 37.5% [44] - Free Cash Flow (TTM) reached $443,007,000 in Q3 2025, compared to $157,349,000 in Q3 2024, indicating a substantial increase of approximately 182% [45] Revenue Breakdown - Platform revenue was $1.065 billion, reflecting a 17% YoY increase, driven by video advertising and streaming services distribution [5] - Devices revenue was $146 million, down 5% YoY, with a gross margin of (16%) [22] - For Q4 2025, total net revenue is expected to be approximately $1.35 billion, representing 12% YoY growth [27] - Platform revenue for Q4 2025 is projected to grow 15% YoY, with an estimated gross margin of approximately 52% [27] - The company raised its full-year outlook for Platform revenue to $4.11 billion, reflecting a growth of nearly 17% and a gross margin of approximately 52% [28] Operational Metrics - Streaming hours increased to 36.5 billion, up 4.5 billion hours YoY [4] - The Roku Channel was the 2 app on the platform by engagement in the U.S., accounting for 6.2% of all U.S. TV streaming time [19] - Operating expenses for Q3 2025 were $515.43 million, slightly down from $515.84 million in Q3 2024 [37] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025, were $1.58 billion, down from $2.16 billion at the end of 2024 [39] - The company reported total assets of $4.40 billion as of September 30, 2025, compared to $4.30 billion at the end of 2024 [39] - Net cash provided by operating activities increased to $376,068,000 for the nine months ended September 30, 2025, compared to $138,753,000 in 2024, reflecting a growth of approximately 171% [41] - The company reported a net cash used in investing activities of $821,279,000 for the nine months ended September 30, 2025, compared to $22,603,000 in 2024, indicating a significant increase in investment outflows [41] Strategic Initiatives - The company launched a new SVOD service, Howdy, priced at $2.99 per month, offering nearly 10,000 hours of content [15] - The company continues to focus on enhancing subscription capabilities and expanding its advertising initiatives, including Ads Manager [34] - The company anticipates double-digit growth in Platform revenue in 2026 and beyond, aiming to increase profitability and free cash flow per share [29] Stock and Restructuring - The company repurchased $50 million of common stock under a $400 million stock repurchase program [2] - The company incurred restructuring charges of $3,064,000 for the nine months ended September 30, 2025, down from $30,999,000 in the same period of 2024 [44] - Total stock-based compensation expense for the nine months ended September 30, 2025, was $268,165,000, slightly lower than $283,124,000 in 2024 [44] - Cash paid for interest increased to $693,000 in the nine months ended September 30, 2025, from $106,000 in 2024, reflecting a significant rise in financing costs [42]