Roku, Inc 10-K for FY2025

Roku, Inc (ROKU)

10-K 2026-02-13 For: 2025-12-31

Added on April 10, 2026

About this 10-K

Roku, Inc filed this 10-K on February 13, 2026, covering the fiscal year ended December 31, 2025 (FY2025).

Headline figures

Fiscal year ended December 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.74B; up 15.2% from $4.11B a year earlier
Net income: $88.36M; compared with a net loss of $129.39M a year earlier
Diluted EPS: $0.59; compared with -$0.89 a year earlier

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Delaware	4841	26-2087865
(State or other jurisdiction of incorporation or organization)	(Primary standard industrial code number)	(I.R.S. employer identification no.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value	ROKU	The Nasdaq Global Select Market


		Page
PART I
Item 1	Business	1
Item 1A	Risk Factors	8
Item 1B	Unresolved Staff Comments	39
Item 1C	Cybersecurity	39
Item 2	Properties	40
Item 3	Legal Proceedings	40
Item 4	Mine Safety Disclosures	40
PART II
Item 5	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	41
Item 6	Reserved	42
Item 7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 7A	Quantitative and Qualitative Disclosures About Market Risk	52
Item 8	Financial Statements and Supplementary Data	53
Item 9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	89
Item 9A	Controls and Procedures	89
Item 9B	Other Information	91
Item 9C	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	91
PART III
Item 10	Directors, Executive Officers and Corporate Governance	91
Item 11	Executive Compensation	91
Item 12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	91
Item 13	Certain Relationships and Related Transactions, and Director Independence	91
Item 14	Principal Accounting Fees and Services	92
PART IV
Item 15	Exhibits and Financial Statement Schedules	93
Item 16	Form 10-K Summary	94
	Signatures	95


	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands)
October 1, 2025 to October 31, 2025	101,029	$	98.98	101,029	$	340,000
November 1, 2025 to November 30, 2025	311,521	$	98.22	311,521	309,402
December 1, 2025 to December 31, 2025	562,744	$	105.53	562,744	250,018
	975,294			975,294


Company / Index	Dec-20	Dec-21	Dec-22	Dec-23	Dec-24	Dec-25
Roku, Inc.	$100	$69	$12	$28	$22	$33
Nasdaq Composite Index	$100	$122	$82	$119	$154	$187
Peer Group	$100	$133	$70	$122	$178	$247


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Years Ended December 31,
	2025		2024		2023
Net income (loss)	$	88,361	$	(129,386)	$	(709,561)
Total other income, net	(99,522)		(98,209)		(92,947)
Stock-based compensation	354,169		384,662		370,130
Depreciation and amortization	68,904		62,714		70,447
Restructuring charges (1)	3,064		30,999		356,094
Income tax expense	5,537		9,428		10,131
Adjusted EBITDA	$	420,513	$	260,208	$	4,294


	Trailing Twelve Months Ended
	December 31, 2025		December 31, 2024
Net cash provided by operating activities	$	483,718	$	218,045
Less: Purchases of property and equipment	(5,280)		(5,061)
Add/(Less): Effect of exchange rate changes on cash, cash equivalents and restricted cash	5,179		(9,746)
Free cash flow (TTM)	$	483,617	$	203,238


			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID 34)			54
Consolidated Balance Sheets			56
Consolidated Statements of Operations			57
Consolidated Statements of Comprehensive Income (Loss)			58
Consolidated Statements of Stockholders’ Equity			59
Consolidated Statements of Cash Flows			60
Notes to Consolidated Financial Statements			62
1. The Company			62
2. Significant Accounting Policies and Basis of Presentation			62
3. Revenue			68
4. Business Combination			69
5. Goodwill and Intangible Assets			70
6. Balance Sheet Components			72
7. Content Assets			73
8. Strategic Investments			74
9. Fair Value Disclosure			75
10. Leases			77
11. Debt			78
12. Stockholders’ Equity			78
13. Commitments and Contingencies			81
14. Income Taxes			82
15. Retirement Plans			86
16. Net Income (Loss) Per Share			86
17. Segment Information			86
18. Restructuring Charges			87


	As of December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	1,587,068	$	2,160,236
Short-term investments	730,213		—
Accounts receivable, net of allowances of $80,448 and $72,657 as of December 31, 2025 and 2024, respectively	879,871		812,510
Inventories	114,642		158,271
Prepaid expenses and other current assets	89,716		103,146
Total current assets	3,401,510		3,234,163
Property and equipment, net	173,577		213,690
Operating lease right-of-use assets	260,341		304,505
Content assets, net	167,908		237,321
Intangible assets, net	50,207		27,501
Goodwill	309,406		161,519
Other non-current assets	70,534		125,234
Total Assets	$	4,433,483	$	4,303,933
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	158,640	$	273,985
Accrued liabilities	957,983		852,799
Deferred revenue, current portion	120,912		105,718
Total current liabilities	1,237,535		1,232,502
Deferred revenue, non-current portion	28,848		25,050
Operating lease liability, non-current portion	435,899		512,706
Other long-term liabilities	73,256		40,938
Total Liabilities	1,775,538		1,811,196
Commitments and contingencies (Note 13)
Stockholders’ Equity:
Common stock, $0.0001 par value; 1,150,000 (Class A - 1,000,000 and Class B - 150,000) shares authorized as of December 31, 2025 and 2024; 147,850 (Class A - 131,067 and Class B - 16,783) shares and 145,910 (Class A - 128,681 and Class B - 17,229) shares issued and outstanding as of December 31, 2025 and 2024, respectively	15		15
Additional paid-in capital	4,145,485		3,921,432
Accumulated other comprehensive income (loss)	1,039		(1,737)
Accumulated deficit	(1,488,594)		(1,426,973)
Total stockholders’ equity	2,657,945		2,492,737
Total Liabilities and Stockholders’ Equity	$	4,433,483	$	4,303,933


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance-December 31, 2022	140,027	$	14	$	3,234,860	$	(292)	$	(588,026)	$	2,646,556
Issuance of common stock pursuant to equity incentive plans	3,475	—		18,757		—		—		18,757
Stock-based compensation expense	—	—		370,130		—		—		370,130
Foreign currency translation adjustment	—	—		—		451		—		451
Net loss	—	—		—		—		(709,561)		(709,561)
Balance-December 31, 2023	143,502	14		3,623,747		159		(1,297,587)		2,326,333
Issuance of common stock pursuant to equity incentive plans	3,906	1		9,379		—		—		9,380
Stock-based compensation expense	—	—		384,662		—		—		384,662
Shares withheld for taxes related to net share settlement of equity awards	(1,498)	—		(96,356)		—		—		(96,356)
Foreign currency translation adjustment	—	—		—		(1,896)		—		(1,896)
Net loss	—	—		—		—		(129,386)		(129,386)
Balance-December 31, 2024	145,910	15		3,921,432		(1,737)		(1,426,973)		2,492,737
Issuance of common stock pursuant to equity incentive plans	5,383	—		34,734		—		—		34,734
Stock-based compensation expense	—	—		354,169		—		—		354,169
Shares withheld for taxes related to net share settlement of equity awards	(1,900)	—		(164,850)		—		—		(164,850)
Repurchases and retirement of common stock	(1,543)	—		—		—		(149,982)		(149,982)
Foreign currency translation adjustment	—	—		—		2,776		—		2,776
Net income	—	—		—		—		88,361		88,361
Balance-December 31, 2025	147,850	$	15	$	4,145,485	$	1,039	$	(1,488,594)	$	2,657,945


	Estimated Fair Value
Assets Acquired
Cash and cash equivalents	$	8,481
Accounts receivable	5,610
Prepaid expenses and other assets	432

Operating lease right-of-use asset	640
Intangible assets	46,000
Goodwill	147,887

Total assets acquired	209,050
Liabilities Assumed
Accounts payable	5,986
Accrued liabilities	9,918
Deferred revenue	16,956
Operating lease liability	358
Deferred tax liability	6,031
Total liabilities assumed	39,249
Total Purchase Consideration	$	169,801


	Estimated Fair Value		Estimated Weighted-Average Useful Lives (in years)
Customer relationships	$	32,000	7.3
Tradename	14,000		5.0
Estimated fair value of acquired intangible assets	$	46,000	6.6


	Carrying Value
Balance as of December 31, 2024	$	161,519
Frndly TV acquisition (see Note 4)	147,887
Balance as of December 31, 2025	$	309,406


	Years Ended December 31,
	2025		2024		Change $		Change %
(in thousands, except percentages)
Platform	$	4,144,886	$	3,522,776	$	622,110	18	%
Devices	592,365		590,122		2,243		—	%
Total net revenue	$	4,737,251	$	4,112,898	$	624,353	15	%


	Years Ended December 31,
	2025		2024		Change $		Change %
(in thousands, except percentages)
Cost of Revenue:
Platform	$	1,988,442	$	1,636,816	$	351,626	21	%
Devices	674,385		670,437		3,948		1	%
Total cost of revenue	$	2,662,827	$	2,307,253	$	355,574	15	%
Gross Profit (Loss):
Platform	$	2,156,444	$	1,885,960	$	270,484	14	%
Devices	(82,020)		(80,315)		(1,705)		2	%
Total gross profit	$	2,074,424	$	1,805,645	$	268,779	15	%


	Years Ended December 31,
	2025		2024		Change $		Change %
(in thousands, except percentages)
Research and development	$	729,477	$	720,145	$	9,332	1	%
Sales and marketing	964,355		932,712		31,643		3	%
General and administrative	386,216		370,955		15,261		4	%
Total operating expenses	$	2,080,048	$	2,023,812	$	56,236	3	%


	Years Ended December 31,
	2025		2024		Change $		Change %
(in thousands, except percentages)
Interest expense	$	(1,906)	$	(411)	$	(1,495)	364	%
Other income, net	101,428		98,620		2,808		3	%
Total other income, net	$	99,522	$	98,209	$	1,313	1	%


	As of December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	73,367	$	(71,138)	$	2,229	5.9
Customer relationships	46,100		(22,995)		23,105		6.3
Tradename	34,400		(11,832)		22,568		7.9
Patents	4,076		(1,771)		2,305		14.0
Total Intangible assets	$	157,943	$	(107,736)	$	50,207	6.7


	As of December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted-Average Useful Lives (in years)
Developed technology	$	73,367	$	(60,896)	$	12,471	5.9
Customer relationships	14,100		(14,100)		—		4.0
Tradename	20,400		(7,966)		12,434		9.8
Patents	4,076		(1,480)		2,596		14.0
Total Intangible assets	$	111,943	$	(84,442)	$	27,501	6.7


Year Ending December 31,
2026	$	14,698
2027	10,507
2028	8,419
2029	7,257
2030	4,884
Thereafter	4,442
Total	$	50,207


	As of December 31, 2025
	Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents:
Cash	$	1,007,068	$	1,007,068	$	—	$	—
Money market funds	580,000		580,000		—		—
Short-term investments:
Time deposits	730,213		—		730,213		—
Total assets measured and recorded at fair value	$	2,317,281	$	1,587,068	$	730,213	$	—
Liabilities:
Accrued liabilities:
Contingent consideration	$	28,110	$	—	$	—	$	28,110
Other long-term liabilities:
Contingent consideration	40,006		—		—		40,006
Total liabilities measured and recorded at fair value	$	68,116	$	—	$	—	$	68,116


Year Ending December 31,	Operating Leases (2)
2026	$	106,560
2027	103,494
2028	100,462
2029	96,845
2030	76,446
Thereafter	110,012
Total future lease payments	593,819
Less: imputed interest	(67,236)
Less: expected tenant improvement allowance	(3,259)
Total (1)	$	523,324


	Total Number of Shares Purchased	Average Price Per Share		Amount
Third Quarter	567,582	$	88.10	$	50,000
Fourth Quarter	975,294	$	102.51	$	99,982
Total share repurchases	1,542,876	$	97.21	$	149,982


Common stock awards granted under equity incentive plans			11,429
Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan *			5,089
Common stock awards available for issuance under the 2017 Amended and Restated Equity Incentive Plan			39,032
Total reserved shares of common stock			55,550


	Number of Shares	Weighted-Average Grant Date Fair Value per Share
Balance as of December 31, 2024	8,657	$	74.80
Awarded	3,343	89.29
Released	(4,462)	84.64
Forfeited	(1,209)	73.77
Balance as of December 31, 2025	6,329	$	75.70


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance as of December 31, 2024	5,759	$	75.24	6.6
Granted	338	89.16
Exercised	(921)	37.71
Forfeited and expired	(76)	71.82
Balance as of December 31, 2025	5,100	$	82.85	6.0	$	201,091

Options exercisable as of December 31, 2025	4,044	$	87.02	5.4	$	157,118


	Year Ended December 31, 2025
	Amount		Percent
U.S. federal income tax at statutory tax rate	$	19,719	21.0	%
State and local income taxes, net of federal income tax effect(1)	(5,581)		(5.9)
Foreign tax effects
United Kingdom	1,481		1.6
Other foreign jurisdictions	2,571		2.7

Effect of cross-border tax laws
U.S. taxation of foreign disregarded entities	(1,378)		(1.5)
Other	(212)		(0.2)
Tax credits
Research and development tax credit	(21,368)		(22.8)
Other	8		—
Changes in valuation allowance	(14,264)		(15.2)
Nontaxable or nondeductible items
Non-deductible compensation	19,145		20.4
Tax effects of stock-based compensation	(8,801)		(9.4)
Other	2,510		2.7
Worldwide changes in unrecognized tax benefits	11,045		11.8
Other adjustments	662		0.7
Total income tax expense and effective tax rate	$	5,537	5.9	%


	Year Ended December 31, 2025
	Facilities Exit Costs		Asset Impairment Charges		Total


Research and development	$	194	$	2,133	$	2,327
Sales and marketing	—		175		175
General and administrative	—		562		562
Total restructuring charges	$	194	$	2,870	$	3,064


	Year Ended December 31, 2024
	Employee Terminations		Facilities Exit Costs		Asset Impairment Charges		Total
Cost of revenue, platform	$	(3)	$	—	$	—	$	(3)
Cost of revenue, devices	1		—		5		6
Research and development	368		98		(603)		(137)
Sales and marketing	697		719		24,641		26,057
General and administrative	(116)		117		5,075		5,076
Total restructuring charges	$	947	$	934	$	29,118	$	30,999


	Year Ended December 31, 2023
	Employee Terminations		Facilities Exit Costs		Assets Impairment Charges		Total
Cost of revenue, platform	$	1,164	$	1	$	65,867	$	67,032
Cost of revenue, devices	524		6		2,793		3,323
Research and development	31,160		1,320		78,011		110,491
Sales and marketing	29,786		517		83,411		113,714
General and administrative	20,531		1,683		39,320		61,534
Total restructuring charges	$	83,165	$	3,527	$	269,402	$	356,094


Roku, Inc.

By:						/s/ Anthony Wood
						Anthony Wood
						President, Chief Executive Officer and Chairman
						(Principal Executive Officer)


By:						/s/ Dan Jedda
						Dan Jedda
						Chief Financial Officer and Chief Operating Officer
						(Principal Financial Officer)


By:						/s/ Matthew Banks
						Matthew Banks
						Vice President, Chief Accounting Officer
						(Principal Accounting Officer)


Name	Title	Date

/s/ ANTHONY WOOD	President, Chief Executive Officer and Chairman	February 13, 2026
Anthony Wood	(Principal Executive Officer)

/s/ DAN JEDDA	Chief Financial Officer and Chief Operating Officer	February 13, 2026
Dan Jedda	(Principal Financial Officer)

/s/ MATTHEW BANKS	Vice President, Chief Accounting Officer	February 13, 2026
Matthew Banks	(Principal Accounting Officer)

/s/ JEFFREY BLACKBURN	Director	February 13, 2026
Jeffrey Blackburn

/s/ MAI FYFIELD	Director	February 13, 2026
Mai Fyfield

/s/ JEFFREY HASTINGS	Director	February 13, 2026
Jeffrey Hastings

/s/ LAURIE SIMON HODRICK	Director	February 13, 2026
Laurie Simon Hodrick

/s/ NEIL HUNT	Director	February 13, 2026
Neil Hunt

/s/ GINA LUNA	Director	February 13, 2026
Gina Luna

/s/ RAY ROTHROCK	Director	February 13, 2026
Ray Rothrock


Subsidiary Name			Jurisdiction
Purple Tag Originals, LLC			Delaware
Purple Tag (Taiwan) Ltd			Taiwan
Purple Tag Media Technology (Shanghai) Ltd.			China
Purple Tag Media Technology (Shanghai) Ltd. - Shenzhen Branch			China
Purple Tag Mexico, S.A. de C.V.			Mexico
Roku India Private Limited			India
Roku International B.V.			Netherlands
Roku UK Limited			United Kingdom


			By:			/s/ Anthony Wood
						Anthony Wood
						President and Chief Executive Officer
						(Principal Executive Officer)