Um, and now Diane King Hall is here. So, I want to see more about some of these movers, including Rivian this morning. We're joined by Diane King Hall.Good morning. >> Good morning. This is on the winning side, Rivian.So, those shares revving up today off the back of his quarterly results, which it did do better than expected. It did report a loss on an adjusted basis, but again, the street was expecting more bleeding than it reported. The adjusted loss uh 54 cents a share.Revenue coming in at 1.29% billion ...

Financial Data and Key Metrics Changes - In Q4 2025, Roku achieved platform revenue growth of 18%, surpassing $1.2 billion, with Adjusted EBITDA of $169 million and net income of $80 million, all records for the company [11][12] - For the full year, platform revenue also grew 18%, with Adjusted EBITDA of $421 million, representing a margin expansion of 255 basis points, and free cash flow of $484 million, over 100% year-over-year growth [12][13] - The outlook for Q1 2026 indicates platform revenue growth of over 21% and 18% for the full year, with full-year adjusted EBITDA guidance of $635 million, representing over 50% year-over-year growth [12][13] Business Line Data and Key Metrics Changes - The advertising segment saw deepened integration with leading demand-side platforms, enhancing measurement and performance capabilities, contributing to the overall revenue growth [9][10] - Q4 2025 was the biggest quarter ever for premium subscription net adds, with plans to add more tier one partners and roll out bundles [9][10] Market Data and Key Metrics Changes - Roku is positioned in over half of U.S. broadband households, with nearly half of all TV streaming occurring on its platform, indicating strong market penetration [18][92] - Internationally, Roku is focusing on monetization in Canada and Mexico, where it has significant scale, while still building scale in Brazil and other Latin American countries [42][44] Company Strategy and Development Direction - Roku's strategy includes broadening and diversifying retail distribution, optimizing investments across retail and OEM partners, and expanding its licensing agreements with major TV manufacturers [15][17] - The company is leveraging AI to enhance content discovery, engagement, and monetization opportunities, viewing it as a significant opportunity rather than a disruptor [24][26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit platform revenue growth while continuing to grow profitability, with a strong focus on operational efficiency and maintaining low cash taxes due to a deferred tax asset [13][19] - The company anticipates that international markets will become a larger percentage of overall platform revenue over time, with ongoing efforts to monetize subscriptions and advertising [44][46] Other Important Information - Roku has a strong free cash flow position, with plans to achieve over $1 billion in free cash flow by the end of 2028 [13][19] - The company is actively investing in its advertising platform, including the launch of Ads Manager, which targets small and medium-sized businesses [66][70] Q&A Session Summary Question: Can you help bridge the Q1 revenue outlook of over 21% growth to the full year outlook of about 18% growth? - Management explained that Q1 has an easier comp from the previous year and includes the full benefit of the Frndly acquisition, with stronger visibility into Q1 compared to the second half of the year [14][15] Question: Can you comment on your retail distribution strategy for 2026? - Management stated that they are focused on broadening retail distribution and optimizing investments, with expansions at Best Buy and Target, and plans to increase sales of first-party TVs after shifting production to Mexico [15][17] Question: How do you think AI could impact the streaming landscape? - Management expressed excitement about AI reducing content costs, which would increase engagement on the platform, and highlighted its integration across the technology stack to improve discovery and monetization [24][26][28] Question: How is the third-party ad demand partnership with Amazon impacting the business? - Management indicated that it is early days for the Amazon partnership, but they are optimistic about its potential as it ramps up, and they are integrating with multiple DSPs to enhance performance [33][35] Question: Can you discuss the international viewership and monetization opportunities? - Management noted that they are seeing scale in Canada and Mexico, with a focus on monetization strategies, while Brazil is still in the scale-building phase [42][44] Question: How do you think about the balance between performance-oriented advertising and maintaining high-quality advertisers? - Management emphasized their ability to serve both high-end clients and performance-oriented advertisers, leveraging their unique position in the CTV landscape [62][66]

Roku (NasdaqGS:ROKU) Q4 2025 Earnings call February 12, 2026 05:00 PM ET Speaker3Hello, and thank you for standing by. Welcome to Roku fourth quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, plea ...

Roku handily beat Wall Street analysts’ consensus forecast for earnings in the fourth quarter and signaled plans to roll out bundles of premium streaming subscriptions. The company posted revenue of $1.4 billion in the fourth quarter, up 16%, with adjusted earnings per share of 53 cents, a reversal of the year-ago quarter’s loss of 24 cents a share. Analysts had been calling for earnings of 28 cents a share. Roku shares rocketed 13% in after-hours trading on the financials as well as upbeat guidance. Roku ...

Core Insights - Investors are showing a bullish stance on Roku, with significant options activity indicating potential upcoming developments [1] - The sentiment among large traders is mixed, with 50% bullish and 25% bearish positions [2] - A total of 12 options trades were identified, with 11 calls amounting to $760,530 and 1 put totaling $28,167 [3] Options Analysis - The projected price targets for Roku are between $55.0 and $125.0 based on recent options activity [4] - Analyzing volume and open interest provides insights into liquidity and interest in Roku's options within the specified price range [5] Company Overview - Roku is a leading streaming platform with over 90 million households and 127 billion streaming hours in 2024, making it the top streaming operating system in the US [10] - The company generates revenue through device sales, licensing, advertising, and subscription fees from platforms sold through Roku [10] Current Performance - Recent expert ratings suggest an average target price of $139.0 for Roku, with upgrades from analysts indicating positive sentiment [12] - Roku's current trading volume is 1,373,630, with a price of $110.52, reflecting a decrease of -0.58% [14] - Anticipated earnings release is in 31 days, with analysts from Evercore ISI Group, Arete Research, and B of A Securities providing target prices of $145, $132, and $140 respectively [14]

Core Insights - High-rolling investors are bullish on Roku, indicating potential privileged information influencing their trading decisions [1] - The sentiment among major traders is split, with 33% bullish and 33% bearish, highlighting mixed market expectations [2] Options Activity - A total of 9 options trades for Roku were identified, with 8 calls totaling $406,242 and 1 put amounting to $27,411, suggesting a stronger interest in calls [2] - Whales have targeted a price range for Roku between $55.0 and $120.0 over the last 3 months, indicating significant price movement expectations [3] - The average open interest for Roku options is 346.78, with total volume reaching 429.00, reflecting active trading in the options market [4] Company Overview - Roku enables streaming for over 90 million households, providing 127 billion streaming hours in 2024, making it the leading streaming operating system in the US [8] - Revenue is generated primarily from device sales, licensing, advertising, and subscription fees from platforms sold through Roku [8] Market Status - Roku's current trading volume is 1,564,184, with a price increase of 1.25% to $111.68, and analysts suggest the stock may be approaching overbought conditions [11] - Analyst ratings show a consensus target price of $133.4, with several analysts upgrading their ratings and price targets, indicating positive market sentiment [10][12]

Core Insights - Roku is entering a stronger phase of its turnaround with improving margins and disciplined execution, leading to reshaped performance expectations [1] - The company is projected to achieve significant revenue growth and profitability improvements in the upcoming quarters [2] Financial Performance - In Q3 2025, Roku's platform revenues grew by 17% year over year, gross profit reached $525 million, and adjusted EBITDA increased by 19% [1] - Fourth-quarter revenues are expected to be $1.35 billion, a 12% increase year over year, with platform revenues projected to grow by 15% and platform gross margin at 52% [2] - Full-year projections include $4.11 billion in platform revenue and $395 million in adjusted EBITDA [2] Market Position - Roku remains the leading TV operating system in the U.S., Canada, and Mexico, with a significant market share that exceeds the combined share of its closest competitors [5] - The Zacks consensus estimate for fourth-quarter streaming hours is 38.77 billion, indicating a 13.7% year-over-year growth [5] Advertising Growth - Roku's advertising engine is strengthening, with automated, data-driven ad buying expanding across the platform [7] - Approximately 90% of advertisers using Roku in Q3 were new to the platform, indicating fresh spending from performance marketers and small businesses [9] - Integrations with third-party demand-side platforms, including Amazon's advertising ecosystem, are broadening demand and improving campaign performance [9] Subscription Growth - Roku's streaming services distribution segment is seeing momentum, supported by Premium Subscriptions and the acquisition of Frndly TV [10] - The launch of the Howdy service, priced at $2.99 per month, expands Roku's reach and promotes efficient subscriber acquisition [11] Valuation and Performance Trends - Roku's valuation is attractive compared to the Zacks Broadcast Radio and Television industry and the broader Consumer Discretionary sector, trading at a forward price-to-sales ratio of 2.98X [12] - Over the past six months, Roku delivered a 42.9% return, significantly outperforming the industry's 8.3% decline and the sector's 3.1% drop [14] Competitive Advantage - Roku can monetize high-margin owned inventories more efficiently than competitors like Netflix and Warner Bros Discovery, who face escalating content costs [17] - Roku's data-rich ecosystem positions it well to capture incremental ad spend while maintaining superior margin potential [17] Conclusion - Roku's strengthening margin profile, growing advertising engine, and expanding subscription ecosystem indicate a business regaining momentum at scale [18] - The improving fundamentals support a clear buy stance, making the stock a compelling opportunity for investors [18]

Core Insights - Roku shares have rebounded in 2025, rising over 35% year to date due to improved execution and a strengthening connected-TV advertising market [2] - The company reported a 15% year-over-year increase in total revenue to approximately $1.11 billion, driven by an 18% rise in platform revenue [5] - Roku remains the leading TV streaming operating system in the U.S., reaching millions of households with its ad-supported services [3] Financial Performance - Roku's second-quarter results showed a return to faster growth in its core platform business and improved profitability [5] - Streaming hours increased to 35.4 billion, up 5.2 billion from the previous year [5] - Management announced a $400 million share repurchase program and raised full-year 2025 guidance, expecting platform revenue to increase by 16% year over year [5] Advertising and Integration - The company's strong performance in video advertising was highlighted, particularly its integration with Amazon's demand-side ad-buying platform [6] - Management expects the integration with Amazon to be completed by the end of the third quarter [6] - CEO Anthony Wood expressed confidence in sustaining double-digit platform revenue growth while improving profitability [7] Competitive Landscape - Competition remains a significant risk, with major players like Amazon, Alphabet, and Samsung aggressively pursuing market share in streaming hardware and advertising [8] - Despite Roku's current leading position, rivals are investing heavily, which could impact Roku's monetization progress [8] Valuation Concerns - Roku's market capitalization is close to $15 billion, with a price-to-sales ratio of approximately 3.3, which requires maintaining double-digit growth and improving margins [9] - Any slowdown in advertising demand or device sales could make the current valuation less appealing [9] Overall Outlook - Roku's platform growth has reaccelerated, and guidance implies better profitability ahead [10] - However, aggressive competition from major players poses risks, and the current stock valuation may not present enough upside for investment [10]

Core Insights - Roku operates a platform-centric streaming business primarily monetized through digital advertising and content distribution, with a focus on expanding household penetration through streaming devices and smart televisions [1][5] Performance Overview - Roku's shares have appreciated 26.3% year to date, outperforming the Zacks Consumer Discretionary sector's increase of 10.5% and lagging behind the Zacks Broadcast Radio and Television industry's return of 29.1% [2] - The company's platform revenues reached $975.5 million in Q2 2025, marking an 18% year-over-year increase, with a consensus estimate of $1.048 billion for Q3 2025, reflecting a 15.4% growth from the previous year [5][9] Advertising and Revenue Model - Roku's advertising ecosystem benefits from its dual role as a content aggregator and technology provider, with video advertising growth surpassing the broader digital ad market [6] - The company retains about 20% of fees from subscription sharing partnerships, contributing to recurring revenues [7] Engagement and Content Strategy - The Roku Channel has driven significant engagement, with streaming hours reaching 35.4 billion in Q2 2025, up 17.6% year over year, and an estimated 37 billion hours for Q3 2025 [11][12] - Roku has secured exclusive rights to various content, enhancing its offerings and increasing ad inventory [12] Product Innovation - Roku's 2025 roadmap includes new compact streaming sticks and an expanded smart television lineup, along with enhanced software features to broaden its ecosystem [13][14] Valuation Metrics - Roku's price-to-cash flow ratio stands at 35.46X, above the industry average of 34.55X, indicating a premium valuation despite a Value Score of D suggesting limited near-term appeal [15][17]

Summary of Roku (ROKU) 2025 Conference Call Company Overview - **Company**: Roku, Inc. - **Date**: September 04, 2025 - **Key Speaker**: Dan Jeddah, COO and CFO Industry Insights - **Industry**: Streaming and Digital Advertising - **Market Position**: Roku controls over half of broadband households in the U.S. and is the leading platform for streaming viewership, surpassing traditional linear TV in hours streamed [4][5][6]. Key Points and Arguments Business Performance - **Platform Revenue Growth**: Roku's platform revenue is expected to grow in the high teens percentage range, driven by monetization initiatives [1][6]. - **User Engagement**: Roku has achieved over 80% engagement growth on its platform, particularly through The Roku Channel (TRC) [16][18]. - **Advertising Strategy**: The company has integrated with all major demand-side platforms (DSPs) to enhance ad inventory monetization [7][23]. Monetization Strategy - **Focus on Monetization**: Roku's strategy involves building scale, enhancing user engagement, and then monetizing that engagement [3][4]. - **Ad Inventory Supply**: Roku has a significant supply of ad inventory and is focused on increasing demand to fill this inventory [19][21]. - **Programmatic Advertising**: Over 50% of Roku's advertising revenue comes from programmatic channels, with expectations to reach 75% in the future [41][36]. Subscription Growth - **Diversification into Subscriptions**: Roku is investing in subscription services, including the acquisition of Friendly and the launch of Howdy, to diversify its revenue streams [66][67]. - **User Interface Advantage**: The control over the user interface allows Roku to effectively market and distribute subscription services [67][68]. Cost Management and Profitability - **Cost Structure**: Roku aims to maintain mid-single-digit growth in operating expenses while achieving operating income positivity by 2026 [72][74]. - **EBITDA Growth**: The company reported $260 million in adjusted EBITDA for 2024, with expectations to reach $375 million in the near future [73][74]. Future Opportunities - **Self-Service Advertising**: Roku has launched self-service advertising products aimed at small and medium-sized businesses (SMBs), which could significantly expand its advertiser base [44][50]. - **Market Trends**: The shift from linear to CTV advertising is expected to continue, with SMBs increasingly accessing CTV through self-service platforms [45][48]. Competitive Landscape - **Market Position**: Roku is positioned as the number one streaming platform in the U.S., Mexico, and Canada, with ongoing growth in Latin America [93]. - **Hardware Strategy**: Roku's operating system is favored by users, contributing to its strong market position despite competition from other hardware manufacturers [88][90]. Additional Important Insights - **Performance Measurement**: Roku is integrating with measurement companies to enhance advertisers' ability to track performance and ROI [56][57]. - **Future Growth Potential**: The company anticipates that new monetization initiatives, including gaming and enhanced programmatic advertising, will contribute to future growth [91][92]. This summary encapsulates the key insights and strategic directions discussed during the Roku conference call, highlighting the company's focus on monetization, user engagement, and market leadership in the streaming industry.