Roku Beats Q1 Estimates, Acquires Frndly TV

Roku reported first-quarter 2025 revenue of $1.02 billion, exceeding expectations with 16% year-over-year growth and a GAAP loss per share of $0.19. Despite the strong results, shares fell over 5% in after-hours trading due to second-quarter revenue guidance of $1.07 billion, which was below analyst estimates. Roku lowered its full-year revenue forecast to $4.55 billion, citing economic uncertainty, tariff concerns, and increased competition from Amazon and Apple. The company's platform segment, led by advertising and subscriptions, grew 17% to $881 million, while device revenue is expected to decline by about 10% year-over-year. Roku also announced the acquisition of Frndly TV for $185 million to bolster its platform business. Analysts expect Roku to maintain financial flexibility and achieve positive operating income by 2026.