Roku Delivers Another Stellar Quarter: Q3 Sales Soar 24% as Media and Entertainment Ad Spending Sees Biggest Growth in Four Years

Roku‘s financial engines are cranking in overdrive ahead of the streaming platform company’s takeover by Fox Corp. next year.

For the third quarter, Roku handily topped Wall Street earnings expectations, with top-line growth of 24% to $1.50 billion in revenue. Total gross profit was $649 million, up 24%, and Roku generated net income of $183 million — up more than seven-fold from the year-prior quarter.

In Q3, Roku’s Platform segment revenue grew 23% year over year to $1.3 billion, with both advertising and subscriptions sales growing 23%.

According to Roku, similar to Q2, political advertising on its platform in Q3 exceeded the comparable quarter from the 2024 U.S. presidential election cycle. Advertising in the company’s media and entertainment category also outperformed: Roku said the most recent quarter was the highest year-over-year revenue growth for M&E in four years “as media companies invested on the Roku platform to promote their content and services.”

Total streaming hours consumed across Roku in Q3 were 39.9 billion, up 9% year over year. Revenue in Roku’s Devices jumped 33%, $194 million. The company operates the Devices business as a loss-leader with a negative margin; in Q3, the operating loss for the segment was $48.6 million (a -25% gross margin), driven primarily by higher memory costs.

Fox Corp. on June 15 announced a deal to buy Roku for $22 billion, which is expected to close in the first half of calendar year 2027. As with its second-quarter earnings, Roku is not hosting an earnings call or providing financial guidance, citing the pending Fox acquisition.

The pending acquisition by Fox “is an extraordinary opportunity to accelerate our vision, allowing us to scale faster and innovate more aggressively for viewers, partners and advertisers,” Roku’s founder and CEO Anthony Wood, and Dan Jedda, CFO and COO, said in a letter to shareholders.

The execs said in the letter: “We are building a diversified and durable business by focusing on monetization initiatives: deepening integrations with third-party advertising platforms, growing Roku-billed subscriptions, and enhancing the Roku Experience. With our open platform, we help our content partners attract and retain audiences, and we offer advertisers the ability to reach viewers at scale, all while providing viewers with an outstanding streaming experience.”

Following the close of the Fox acquisition, Wood will have an ongoing role at the combined company and will join the Fox board.

Pictured top: Disney+ “Toy Story 5” home screen takeover on Roku