Roku, Inc. reported third-quarter 2026 financial results that showed continued expansion in its core platform business. Total net revenue reached $1.5 billion, an increase of 24 percent from the same period a year earlier. Platform revenue, encompassing advertising and subscriptions, rose 23 percent year over year to $1.3 billion. Both the advertising and subscription segments grew at the same 23 percent rate.
Total gross profit came to $649 million, up 24 percent. The company recorded net income of $183 million, Adjusted EBITDA of $249 million, and free cash flow of $796 million on a trailing twelve-month basis. Streaming hours totaled 39.9 billion, a 9 percent increase. The Roku Channel ranked as the second most engaged application on the platform in the United States and globally.
These figures arrive while Roku is in the process of being acquired by Fox Corporation. The companies announced a definitive agreement on June 15, 2026. In light of the pending transaction, Roku did not hold an earnings call and did not issue a financial outlook. Management indicated that results remain consistent with the second-half 2026 forecast contained in the proxy statement associated with the deal.
Advertising revenue totaled $727 million, extending a streak of nine consecutive quarters of double-digit growth. Gross margin in the segment improved to 63.2 percent, an increase of roughly 470 basis points, driven mainly by a shift toward higher-margin products. Growth in video advertising on the platform exceeded that of the broader U.S. over-the-top and digital advertising markets. More than 80 percent of in-stream video ad impressions were delivered through programmatic channels. Political advertising in the quarter surpassed the level seen in the comparable period of the 2024 U.S. presidential election cycle. The media and entertainment category recorded its strongest year-over-year revenue growth in four years.
Subscriptions revenue reached $581 million. Gross margin in the segment declined to 40.9 percent, with the largest factor being a strategic mix shift toward premium subscriptions. Approximately 95 percent of premium subscription sign-ups came from customers who had never subscribed to the service directly. Roku increased its share of U.S. subscription video-on-demand subscriptions even as the overall market declined sequentially.
Devices revenue rose 33 percent to $194 million, though the segment posted a gross loss primarily because of elevated memory costs. Roku-made televisions approached 8 percent of total U.S. television unit sales volume during the quarter. The company introduced its first OLED television models and continued to broaden licensing relationships with television brands.
Platform developments included completion of the U.S. rollout of a redesigned home screen, expanded use of artificial intelligence for recommendations and search, and sports features that generated more than one million subscription sign-ups during the World Cup. Premium subscription bundles offering more than 35 combinations of services were also launched. The company maintains that its open platform approach aligns its interests with those of content partners, advertisers, and television manufacturers, and that more than 100 million households worldwide use Roku.
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