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Roku is intensifying its efforts in subscription growth, focusing on improved user acquisition and retention, particularly through its personalized merchandising initiatives like the AI-powered content row on the Home Screen. In Q1 2025, Roku acquired Frndly TV to enhance its live and on-demand offerings and partnered with Apple TV+ to provide Roku users free access to Season 1 of Severance and a three-month trial of the streaming service.
In Q1 2025, Roku’s platform revenues reached $881 million, up 17% year-over-year, making up 86.3% of total revenues, primarily boosted by subscriptions. Deferred revenue growth also increased to $141 million, a rise of 7.8%. For Q2 2025, the Zacks Consensus Estimate predicts Roku’s revenues in the Platform segment at $942 million, reflecting a 14.3% increase from the previous year.
Roku faces stiff competition from Amazon and Disney, both of which offer integrated billing solutions within their platforms. Roku shares have increased by 18.6% year to date, lagging behind the Zacks Broadcast Radio and Television industry’s growth of 32.3% and outperforming the Consumer Discretionary sector’s 11.5% return. The Zacks Consensus Estimate for Roku’s Q2 2025 loss is projected at 17 cents per share, indicating a year-over-year growth of 29.17%.
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