Roku Inc. (ROKU) is set to report its second-quarter 2025 financial results on July 31, 2025. The company anticipates total net revenues of approximately $1.07 billion, reflecting an 11% year-over-year increase, with platform revenues expected to rise by 14% while devices revenues are projected to decline by 10%. The Zacks Consensus Estimate for the quarter aligns with this revenue expectation and suggests a loss of 16 cents per share, indicating a year-over-year growth of 33.33%.
In the first quarter of 2025, Roku achieved a gross profit of about $465 million and expects adjusted EBITDA of approximately $70 million for Q2. It has a positive earnings ESP of +7.41% and a Zacks Rank of #2 (Buy), bolstered by recent partnerships with firms like Amazon and Walmart that aim to strengthen its advertising business. The Devices segment, however, is anticipated to remain a drag on profitability, with revenues estimated at $129 million.
Year-to-date, Roku’s shares have surged by 25.7%, outperforming both the Zacks Consumer Discretionary sector’s growth of 10% and the S&P 500’s growth of 8.2%. Roku’s current price-to-cash flow ratio stands at 42.49X, significantly above the industry average of 32.84X, indicating high growth expectations from investors.
