Roku Beats Q3 Estimates, Raises Guidance

Roku reported third-quarter revenue of $1.21 billion, up 14% year‑over‑year, and adjusted EPS of $0.16, beating expectations and delivering its first operating profit since 2021 at roughly $9.5 million. Platform revenue grew 17% to $1.065 billion and streaming hours reached 36.5 billion, while device revenue fell about 5% to $146 million with notably weak hardware margins. Management raised guidance, forecasting Q4 revenue around $1.35 billion and increasing full‑year Platform revenue to $4.11 billion, adjusted EBITDA to $395 million, and full‑year revenue to roughly $4.69 billion. The company authorized a $50 million share buyback under an existing $400 million program and highlighted product and AI improvements to boost discovery and subscriptions. Despite the beat and the raised outlook, shares dropped sharply in after‑hours trading as investors focused on the device slump and a tepid near‑term forecast.