Roku (NASDAQ:ROKU) reports strong Q3 2026
Streaming TV platform Roku (NASDAQ: ROKU) reported revenue ahead of Wall Street’s expectations in Q3 2026, as revenue rose 24.1% year on year to $1.5 billion. Its GAAP profit of $1.20 per share was significantly above analysts’ consensus estimates.
For more on Roku, read our free full research report.
Roku (ROKU) Q3 2026 highlights:
- Revenue $1.5 billion vs S&P analysts’ consensus estimates of $1.41 billion (24.1% year-on-year growth, 6.2% beat)
- EPS (GAAP) $1.20 vs analysts’ consensus estimates of $0.54 (significant beat)
- Adjusted EBITDA $248.8 million vs analysts’ consensus estimates of $162.6 million (16.6% margin, 53% beat)
- Operating margin 10.9%, up from 0.8% in the same quarter last year
- Free cash flow margin 14.5%, down from 20.7% in the previous quarter
- Total hours streamed 39.9 billion, up 3.4 billion year on year
- Market capitalization $23.02 billion
Revenue growth
A company’s long-term revenue performance is one signal of its overall quality. Any business can have a good quarter or two, but many enduring ones grow for years. Roku’s revenue grew at a solid 17.8% compounded annual growth rate over the last three years. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers.
This quarter, Roku reported strong year-on-year revenue growth of 24.1%, and its $1.5 billion in revenue topped Wall Street’s consensus estimates by 6.2%.
Looking ahead, sell-side analysts expect revenue to grow 12.3% over the next 12 months, according to S&P, a deceleration versus the last three years. Despite the slowdown, this projection is above average for the sector and indicates the market sees some success for its newer products and services.
Total hours streamed
Request growth
As a subscription-based app, Roku generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.
Over the last two years, Roku’s total hours streamed, a key performance metric for the company, increased by 12.6% annually to 39.9 billion in the latest quarter. This growth rate is strong for a consumer internet business and indicates users value its offerings. 
In Q3, Roku added 3.4 billion total hours streamed, leading to 9.3% year-on-year growth. The quarterly growth rate was lower than its two-year rate, suggesting its new initiatives aren’t accelerating request growth just yet.
Revenue per request
Average revenue per request (ARPR) is a critical metric to track because it measures how much the average request spends. ARPR is also a key indicator of how valuable its requests are (and can be over time).
Roku’s ARPR growth has been decent over the last two years, averaging 5.8%. Its ability to increase monetization while effectively growing its total hours streamed demonstrates the value of its platform. 
This quarter, Roku’s ARPR was $0.04. It grew by 13.5% year on year, faster than its total hours streamed.
Key takeaways from Roku’s Q3 results
A sizable EBITDA beat stood out among the positives in Roku’s quarter, with revenue also topping Wall Street’s consensus estimates. Shares remained flat at $155.68 immediately after the results.
Roku’s latest quarter is only one piece of the longer-term business quality picture. Business quality, combined with valuation, can help determine whether the stock is worth buying. Read our full research report here (it’s free).