Net income rose 1,463.5%.
That is the oddest number in Roku's latest filing, and it makes the three months ended June 30 look like an unusually large change in reported earnings. Net income went from $10.5 million to $164.2 million, while operating income swung from a $23.3 million loss to $146.2 million.
The underlying business grew, too, just not at anything like the pace of the earnings line. Revenue increased 21.9% to $1.4 billion, while gross profit grew 35.4% to $673.7 million. Gross margin expanded from 44.8% to 49.7%, giving Roku more profit from each dollar of sales.
The strongest receipt is in subscriptions. Roku said the number of subscriptions grew 11%, while the average price per subscription rose 25%. That combination made subscriptions revenue grow 26%, or $111.7 million, in the three-month period.
The filing also shows what Roku had to spend to support that growth. Subscription cost of revenue grew faster than subscription revenue, with licensing and content costs doing the work.
"Subscriptions Cost of revenue, subscriptions increased by $81.0 million, or 34%, during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily driven by higher licensing and content costs."
10-Q 2026-08-06
So the profit surge is not just a volume story. Roku is charging more per subscription, and its subscription cost base is rising at the same time. The filing gives the cost increase a clear explanation, but not a future margin promise. Streaming economics remain a business of collecting money from viewers and sending some of it straight back to rights holders.
Roku also disclosed a 12% decrease in the average price per impression, caused by changes in product and country mix. That leaves two different pricing signals inside the same advertising and subscription machine: subscribers are paying more, while each ad impression is worth less on average.
The cash picture adds another wrinkle. Roku's cash balance fell 11.2% year over year to $2.0 billion. In the separate six-month cash-flow table, operating cash flow rose to $483.8 million from $248.5 million, but financing used $252.4 million, including $162.7 million of common-stock repurchases and $110.8 million of tax payments tied to vested equity awards.
That is not a contradiction so much as a reminder that profit, operating cash, and the cash balance answer different questions. Roku generated more from operations, then sent substantial cash out through financing activity.
The company also disclosed that Amazon, Best Buy, Target, and Walmart together accounted for 79% of Devices revenue in the latest three-month period. That puts the subscription growth next to a device channel where a small group of retailers handles most reported sales, without saying what that concentration did to the period's results.
At the latest annual facts, Roku carries a 251.0x P/E. The valuation makes the current earnings jump highly visible, but it also means the annual earnings denominator remains small relative to the share price. The latest close was $146.98, after a 0.3% daily move on August 5.
Roku's next quarterly report will add another comparison for subscription cost growth, average price per subscription, and the cash balance. For now, the trade-off is simple: Roku is collecting more from subscribers and paying more to supply them.