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Here are 1-2 brief analogies to describe Roku:

• Roku is like the Android OS for smart TVs and streaming players, providing a universal platform for accessing all major streaming services.

• Roku is similar to Amazon's Fire TV, offering streaming devices and a smart TV operating system that aggregates content and generates revenue primarily from advertising.

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• Roku Streaming Players: Hardware devices that connect to TVs, enabling users to stream content from various online services.
• Roku TVs: Smart televisions with the Roku operating system built-in, offering integrated access to streaming channels.
• Roku Platform: The proprietary operating system and user interface that powers Roku devices and TVs, providing access to a wide array of streaming channels.
• Advertising Services: Roku's ad-tech platform that monetizes content through targeted advertising across The Roku Channel and partner channels.
• Content Distribution: A service enabling content providers to distribute their streaming channels and content to Roku's user base.

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Anthony Wood, Founder, Chairman and CEO

Anthony Wood founded Roku in 2002, marking his sixth startup. He previously founded ReplayTV, the first commercially sold DVR, and served as CEO before its acquisition by SONICblue Incorporated in 2001 for $42 million. Wood also co-founded iband, Inc., which was acquired by Macromedia, and founded SunRize Industries. Additionally, he founded BrightSign, a global leader in digital signage media players, which was spun off from Roku in 2010. He briefly served as Vice President of Internet TV at Netflix in 2007, where he developed a Netflix-streaming player before Netflix spun his engineering team back out to Roku.

Dan Jedda, Chief Financial Officer & Chief Operating Officer

Dan Jedda joined Roku in 2023 as Chief Financial Officer and was appointed Chief Operating Officer in 2025. Before Roku, he served as CFO at Stitch Fix. Jedda spent 15 years at Amazon, holding various leadership positions including CFO/VP for Digital Video (including Amazon Studios), Advertising, and Corporate Development. His earlier career included leadership roles at Toshiba, ADC Telecommunications, and Honeywell.

Mustafa Ozgen, President, Devices, Products and Technology

Mustafa Ozgen joined Roku in February 2019. Prior to Roku, he served as CEO of SmartKem, a semiconductor company, and as CEO of QD Vision, a nanotechnology materials firm that was acquired by Samsung. He also held senior management and engineering roles at several companies including Sigma Designs, CSR, and Zoran, and served for seven years as an officer in the Turkish Navy.

Charlie Collier, President, Roku Media

Charlie Collier joined Roku in 2022. He previously served as CEO of Fox Entertainment, where he oversaw the company's entertainment strategy and business operations. Before Fox, Collier spent over 12 years at AMC Networks as President and General Manager, leading the launch of acclaimed series such as "Mad Men" and "Breaking Bad." His career also includes positions at Court TV, Oxygen Media, and A+E Networks.

Chris Handman, Senior Vice President and Chief Counsel

Chris Handman joined Roku in October 2025. He most recently served as General Counsel at Rippling. Handman was also the Co-Founder and COO of TerraTrue and previously served as General Counsel for Snap Inc., guiding the company through its IPO. Earlier in his career, he was a partner in the Supreme Court and appellate practice at Hogan Lovells LLP.

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The key risks to Roku's business (ROKU) are:

1. Intense Competition and Market Share Erosion: Roku faces significant and increasing competition in the smart TV operating system (OS) market and streaming industry from well-resourced tech giants such as Google (Google TV), Amazon (Fire TV), Apple (Apple TV), and Samsung (Tizen OS). These competitors not only offer their own streaming hardware and platforms but also leverage their extensive ecosystems and substantial financial capabilities to gain market share. The potential for consolidation among content providers and strategic acquisitions, such as Walmart's reported interest in Vizio, could further intensify this competitive landscape, potentially weakening Roku's position in content distribution and advertising.
2. Reliance on Advertising Revenue and Macroeconomic Sensitivity: A substantial portion of Roku's revenue, particularly from its higher-margin platform segment, is generated through digital advertising. This reliance makes the company vulnerable to fluctuations in advertising spending, which can be significantly impacted by macroeconomic factors and an "uneven ad market recovery." Any downturns in the advertising market directly affect Roku's primary revenue driver.
3. Persistent Profitability Challenges in the Devices Segment: Roku's Devices segment, which includes its streaming players and branded TVs, consistently operates at a gross loss and faces ongoing financial strain and margin pressure. While this segment is viewed as a strategic tool to expand Roku's user base and grow its overall streaming footprint, its unprofitability acts as a drag on the company's overall financial performance. The company has intentionally prioritized growing its streaming households, sometimes at the expense of short-term device profitability.

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• Growing dominance of proprietary Smart TV operating systems by hardware manufacturers, such as Samsung's Tizen and LG's webOS, which are increasingly integrating their own advertising platforms and content ecosystems. This directly competes with Roku's strategy of licensing its operating system and monetizing through advertising on third-party televisions.
• Aggressive expansion by major tech companies like Google (with Android TV/Google TV) and Amazon (with Fire TV), who are leveraging their extensive ecosystems, financial resources, and existing user bases to capture market share in the Connected TV (CTV) operating system and advertising segments. They are securing partnerships with TV manufacturers and building sophisticated ad technology to directly challenge Roku's platform growth and advertising revenue.

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The addressable markets for Roku's main products and services are as follows:

• For the overall global Roku market, encompassing both devices and platform services, the market was valued at approximately US$35.49 billion in 2024 and is projected to reach US$87.75 billion by 2030, with a compound annual growth rate (CAGR) of 17% from 2025 to 2030.
• The global Roku smart TV market size specifically was valued at US$35,490.5 million in 2024 and is estimated to grow at a CAGR of 17.1% from 2024 to 2030.
• The Connected TV (CTV) advertising market, in which Roku's platform heavily participates, is projected to exceed $25 billion globally in 2025. This market is expected to grow from $6.65 billion in 2024 to $13.5 billion in 2029.

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Here are 5 expected drivers of future revenue growth for Roku (ROKU) over the next 2-3 years:

1. Growth in Platform Advertising Revenue: Roku anticipates continued double-digit platform revenue growth, primarily driven by video advertising. The company is actively working on expanding and diversifying ad demand through deeper integrations with third-party Demand-Side Platforms (DSPs), such as Amazon, and by growing its self-serve ad platform, Roku Ads Manager. This strategy aims to meet enterprise clients where they transact and attract new advertisers to the platform.
2. Expansion of Subscription Revenue and Content Monetization: Roku is focused on growing its subscription business, which includes both third-party premium subscriptions offered through its platform and its own content offerings. Recent initiatives like the launch of the "Howdy" streaming service and the acquisition of Frndly TV are expected to tap into underserved markets and contribute to subscription revenue growth.
3. Enhancements to the Roku Experience (Home Screen and User Interface): Strategic improvements to the Roku Home Screen and overall user interface (UI) are expected to drive increased viewer engagement, improve content discovery, and expand monetization opportunities. These enhancements are designed to increase ad reach and subscription sign-ups.
4. International Expansion and Increased Streaming Households: Roku has emphasized its strategic international growth plans, with a goal of reaching 100 million global streaming households by 2026. Expanding its presence in international markets, such as Brazil, is a key component of increasing its active user base and, consequently, its revenue potential.
5. Growth in Average Revenue Per User (ARPU): Roku's management anticipates that Average Revenue Per User (ARPU) will grow faster than active accounts due to the success of its platform revenue initiatives. This indicates an expectation of increasing monetization from each user through advertising and subscription services.

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1. Share Repurchases

   • Roku announced a $400 million stock repurchase program on July 31, 2025, to offset dilution from employee equity-based compensation and enhance shareholder value.
   • As of September 30, 2025, the company had repurchased $50 million of stock under this $400 million program.
   • In early 2024, Roku initiated a net share settlement program, offsetting approximately 40% of the gross dilution, with a long-term goal to offset 100% of dilution.

2. Share Issuance

   • Roku's shares outstanding have generally increased, with 0.150 billion shares outstanding as of June 30, 2025, representing a 3.7% year-over-year increase.
   • Shares outstanding were 0.145 billion in 2024 (a 2.16% increase from 2023) and 0.142 billion in 2023 (a 2.84% increase from 2022).

3. Outbound Investments

   • Roku acquired Frndly TV for $185 million in May 2025, aiming to expand its platform business and increase recurring revenue through subscription offerings.
   • In January 2021, Roku acquired the content library of Quibi Holdings LLC, which included over 75 shows and documentaries.

4. Capital Expenditures

   • Roku's capital expenditures averaged $74.36 million annually from fiscal years 2020 to 2024.
   • Capital expenditures peaked at $161.7 million in December 2022 and reached a 5-year low of $5.061 million in December 2024.
   • The company invests in platform expansion, content acquisition, advanced ad technology, and developing the Roku OS and its Roku TV program.