Roku reports strong Q3 earnings amid pending Fox merger

Roku reported third-quarter revenue of $1.5 billion, a 24 percent increase year-over-year that exceeded analyst expectations of $1.41 billion. Net income rose 639 percent to $183 million, resulting in diluted earnings per share of $1.20, significantly higher than the $0.55 predicted by analysts.

Growth was driven by a 34 percent increase in platform revenue, fueled by both advertising and subscriptions. Advertising revenue grew 23 percent to $727 million, supported by a shift toward higher margin products and strong political advertising, which exceeded levels seen in the comparable quarter of the 2024 U.S. presidential election cycle. Streaming hours reached 39.9 billion, a 9 percent increase.

The financial results come as Roku prepares for its $22 billion acquisition by Fox Corp. Fox CEO Lachlan Murdoch stated that the merger has cleared major regulatory hurdles outside the United States and has received shareholder approval. The transaction is currently under review by the U.S. Department of Justice's antitrust division and is expected to close in the first half of 2027.