Shares of Roku surged 8% on Friday following robust fourth-quarter results that significantly surpassed analysts’ expectations and provided encouraging guidance for the future. According to estimates compiled by LSEG, the streaming giant reported earnings of 53 cents per share, well above the anticipated 28 cents. Revenue also exceeded forecasts, coming in at $1.39 billion compared to the expected $1.35 billion.
Roku CEO Anthony Wood outlined the main driver behind the company’s subscription business during an interview with CNBC’s Julia Boorstin. He noted the ongoing trend of services transitioning to premium subscription models rather than developing standalone apps. “That’s really, I think, the core driver,” Wood explained.
In a shareholder letter, Roku executives declared that the fourth quarter marked its “biggest quarter ever” for new additions to premium subscriptions. This program allows users to subscribe to various streaming services, such as HBO Max and Paramount+, all through a single Roku account. The company announced plans to introduce premium subscription bundles later this year.
Year-over-year, Roku’s revenue exhibited an impressive 18% growth, rising from $1.03 billion to $1.39 billion. The company reported a net income of $80.5 million, translating to 53 cents per share, a stark recovery from a loss of $35.5 million, or 24 cents per share, during the same period last year. For the current quarter, Roku forecasts revenue of $1.2 billion, exceeding the $1.16 billion analysts expect, as indicated by StreetAccount. Additionally, the company anticipates full-year revenue of $5.5 billion, surpassing analyst projections of $5.34 billion.
In a strategic move, Roku acquired Frndly, a live TV subscription streaming service, for $185 million last May. Recent innovations also include the launch of an ad-free streaming service, Howdy, priced at $2.99 per month. Wood expressed optimism during the earnings call, stating that Howdy has the potential to evolve into a “very large service” over time. Furthermore, Roku expects to surpass 100 million streaming households this year.
Buoyed by these strong fourth-quarter results, analysts at Rosenblatt Securities upgraded Roku’s stock from neutral to buy. They highlighted the company’s significant position as a gatekeeper for U.S. streaming, noting that Roku devices facilitate half of all streaming on TVs in the nation. The analysts pointed to improved monetization opportunities through partnerships with Amazon, a new advertising tool tailored for small to mid-sized businesses, and enhancements made to the platform’s homepage for advanced ad placements.
Correction Notice: A previous version of this article inaccurately reported Roku’s fourth-quarter earnings; the correct figure is 53 cents per share.
This report encapsulates Roku’s strategic advancements and promising outlook, positioning the company favorably in the competitive streaming landscape. Keeping an eye on future developments, Roku continues to be a formidable player in the industry.
Original Source: https://www.cnbc.com/2026/02/13/roku-stock-earnings-premium-subscriptions.html
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Publish Date: 2026-02-14 02:42:00
