Roku Inc. saw its shares surge approximately 12% in after-hours trading Thursday following the release of an optimistic financial forecast for 2026. The company projected net revenue that surpassed consensus analyst estimates, sparking a rebound after the stock closed the regular session down about 6%.
Financial Targets and Performance
The streaming hardware and platform company guided for 2026 net revenue of $5.5 billion alongside adjusted EBITDA of $635 million. For its platform segment, which includes advertising and content distribution, Roku anticipates revenue growth of 18% to reach $4.89 billion next year, ahead of the $4.66 billion average forecast from analysts.
In its shareholder letter, Roku reported fourth-quarter net revenue of $1.395 billion with net income of $80.5 million. For the current quarter, the company expects net revenue near $1.2 billion and adjusted EBITDA of $130 million.
Key Operational Metrics
Streaming activity on Roku's platform showed strong growth, with total hours increasing 15% during 2025 to 145.6 billion. The company's owned Roku Channel captured 6.3% of U.S. TV streaming share in December, up from 4.6% a year earlier. CEO Anthony Wood told analysts the company expects to surpass 100 million streaming households this year.
The devices segment continued to face challenges, posting a negative 23% gross margin for the recent quarter. However, the company noted that video advertising revenue on its platform outperformed both the broader streaming sector and the digital ad market overall in 2025.
Market Context and Challenges
Roku's performance remains closely tied to connected-TV advertising budgets, with investors monitoring whether marketers are increasing spending in the streaming space. The company faces intensifying competition for advertising dollars from rivals including YouTube and other streaming services that are introducing lower-priced ad-supported tiers.
The stock's after-hours gains will face their next test during Friday's regular trading session as investors digest the full earnings report and analysts begin issuing updated ratings and price targets. Market participants will be watching to determine whether the positive momentum can be sustained throughout the trading day.
