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Roku Inc(ROKU)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
2-STAR RATING
WEAK BUY
BUY for 55 days
PROFIT SINCE LAST BUY
+7.87%
LAST CLOSE
$153.64
09/18/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Advisory Performance History (Simulated)Advisory Performance History info

Upturn Advisory & Investor View for ROKU

09/18/2026: ROKU (2-star) has a low Upturn Star Rating. Not recommended to BUY.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Moderately Choppy
PRICE STABILITY

Moderately Choppy

The stock has experienced noticeable price swings while retaining some directional structure.

Analysis of Past Performance

Type Stock
Historic Profit -29.73%
Avg. Invested days 31
Today’s Advisory WEAK BUY
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/18/2026

Upturn Scorecard

Upturn Star Rating

ROKU receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

ROKU has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+168.3%) and solid cash generation (FCF margin 10.1%) are partially offset by soft profitability (net margin 1.9%), very low insider ownership of 0.66%.

Financial Health Rating

ROKU's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 48.8%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

Earnings growth is ROKU's strongest growth driver at +168.3% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+15.2%, solid) and free-cash-flow growth (+124.6%, strong) are also constructive, though not equally high across every growth measure.

Ownership

Institutional ownership is 88.8% and approximately 99.1% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.66%, which materially reduces the ownership score.

Top 5 Institutional Investors

FMR Inc 11.45%
BlackRock Inc 5.00%
Vanguard Portfolio Management, LLC 4.35%
Vanguard Capital Management, LLC 3.96%
Pentwater Capital Management LP 2.91%

Unit Economics (Per $1K Revenue)

ROKU generates approximately $438 of gross profit, $-1 of operating income, and $101 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

Effective Tax Rate: 5.90%

Quantitative Style Profile

ROKU has a large-cap, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilityLarge / Mega Cap StabilityShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 22.82B USD
Price to earnings Ratio 64.83
1Y Target Price 162.33
Price to earnings Ratio 64.83
1Y Target Price 162.33
Volume (30-day avg) 2.3M shares
Beta 2.05
52 Weeks Range 78.53 - 159.89
Updated Date 09/20/2026
52 Weeks Range 78.53 - 159.89
Updated Date 09/20/2026
Dividends yield (FY) -
Basic EPS (TTM) 2.37

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 64.83
Forward PE 39.06
Enterprise Value 20.73B
Price to Sales(TTM) 4.38
Enterprise Value 20.73B
Price to Sales(TTM) 4.38
Enterprise Value to Revenue 3.98
Enterprise Value to EBITDA 28.37
Shares Outstanding 132.14M
Shares Floating 130.99M
Shares Outstanding 132.14M
Shares Floating 130.99M
Percent Insiders 0.66
Percent Institutions 88.76

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Roku Inc

Exchange NASDAQ
Headquarters San Jose, CA, United States
IPO Launch date 2017-09-28
Founder, Chairman, President & CEO Mr. Anthony J. Wood
Sector Communication Services
Industry Entertainment
Full time employees 3600
Full time employees 3600

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others, as well as offers digital advertising services. The company also sells streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.