The market has decided to sell first and ask questions later, as observed in Roku, Inc. stock's steep double-digit selloff after the poorly received FQ2 '25 earnings call. Part of the headwinds are naturally attributed to the deteriorating platform gross margins, as the tariff/ macro headwinds trigger changes in advertisers' media buying patterns. For now, we welcome the meltdown, since it brings ROKU closer to our fair value estimates while offering interested investors with richer capital appreciation prospects.
Roku's strong Q2 beat and raised guidance reinforce my bullish thesis, despite a modest post-earnings dip amid broader market caution. Roku benefits from secular streaming growth, leading OS market share, and increasing ad revenue as its platform matures and innovates. Device refreshes and gross margin improvements, plus robust free cash flow, strengthen Roku's long-term fundamentals and cash position.
The headline numbers for Roku (ROKU) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Roku (ROKU) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of a loss of $0.16 per share. This compares to a loss of $0.24 per share a year ago.
Streaming name Roku Inc (NASDAQ:ROKU) is gearing up for its second-quarter report, due out after the close tomorrow, July 31.
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Roku: Lingering Profitability Concerns
Expected platform revenue growth, strong ad gains and rising subs in Q2 signal upside potential for ROKU, suggesting an attractive entry point for investors.
Recently, Zacks.com users have been paying close attention to Roku (ROKU). This makes it worthwhile to examine what the stock has in store.
Top-ranked stocks Affirm (AFRM), Roku (ROKU), Amazon.com (AMZN), Robinhood Markets (HOOD) and Newmont (NEM) are likely to beat on the bottom line in their upcoming releases.
Roku (ROKU) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Roku (NASDAQ:ROKU) is expected to announce its Q2 2025 earnings in early August. We anticipate that the company will report a net loss of approximately $0.16 per share, with revenue projected at $1.07 billion, reflecting an increase of about 11% compared to the previous year.