Streaming TV platform Roku (NASDAQ: ROKU) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 21.9% year on year to $1.35 billion. Its GAAP profit of $1.08 per share was 81.9% above analysts’ consensus estimates.
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Roku (ROKU) Q2 CY2026 Highlights:
- Revenue: $1.35 billion vs analyst estimates of $1.3 billion (21.9% year-on-year growth, 4.4% beat)
- EPS (GAAP): $1.08 vs analyst estimates of $0.59 (81.9% beat)
- Adjusted EBITDA: $254.3 million vs analyst estimates of $171.1 million (18.8% margin, 48.6% beat)
- Operating Margin: 10.8%, up from -2.1% in the same quarter last year
- Free Cash Flow Margin: 20.7%, up from 15.7% in the previous quarter
- Total Hours Streamed: 37.9 billion, up 2.5 billion year on year
- Market Capitalization: $21.71 billion
Company Overview
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Roku’s 17.4% annualized revenue growth over the last three years was solid. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.
This quarter, Roku reported robust year-on-year revenue growth of 21.9%, and its $1.35 billion of revenue topped Wall Street estimates by 4.4%.
Looking ahead, sell-side analysts expect revenue to grow 13.6% over the next 12 months, a deceleration versus the last three years. Still, this projection is healthy and implies the market is forecasting success for its products and services.
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Total Hours Streamed
Request Growth
As a subscription-based app, Roku generates revenue growth by expanding both its subscriber base and the amount each subscriber spends over time.
Over the last two years, Roku’s total hours streamed, a key performance metric for the company, increased by 13.9% annually to 37.9 billion in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
In Q2, Roku added 2.5 billion total hours streamed, leading to 7.1% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating request growth just yet.
Revenue Per Request
Average revenue per request (ARPR) is a critical metric to track because it measures how much the average request spends. ARPR is also a key indicator of how valuable its requests are (and can be over time).
Roku’s ARPR growth has been mediocre over the last two years, averaging 3.7%. This isn’t great, but the increase in total hours streamed is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Roku tries boosting ARPR by taking a more aggressive approach to monetization, it’s unclear whether requests can continue growing at the current pace. 
This quarter, Roku’s ARPR clocked in at $0.04. It grew by 13.9% year on year, faster than its total hours streamed.
Key Takeaways from Roku’s Q2 Results
We were impressed by how significantly Roku blew past analysts’ EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $149.66 immediately following the results.
Is Roku an attractive investment opportunity at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
