Streaming Industry Update: Netflix vs. Roku
As of June 10, 2026, Netflix (NASDAQ: NFLX) has experienced a 12% decline in share price this year, while Roku (NASDAQ: ROKU) has seen an 11% increase. Netflix has over 325 million subscribers with an operating margin of 32.3% in Q1, but faces expected revenue growth of only 13.3% this year, the slowest since 2012. In contrast, Roku’s Q1 revenue increased by 22.4% to $1.2 billion, marking the fastest growth rate since Q1 2022.
Roku’s platform segment, which includes advertising and subscriptions, achieved sales growth of 28% in Q1, and the company anticipates generating $360 million in net income this year. Moreover, Roku expects to produce $1 billion in free cash flow by 2028, representing a 107% increase from 2025, driven by high-margin revenues and effective cost controls.
Investors must weigh their objectives: Netflix offers stability and established leadership in the streaming market, while Roku may present greater upside potential given its expanding free cash flow and aggressive growth trajectory.
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