Roku’s Platform Advertising Surges 17% in Q3 2025
Roku has reported a solid performance in its advertising revenue, demonstrating significant growth in the third quarter of 2025. The company’s platform revenue rose by 17%, amounting to $1.07 billion. This increase highlights the growing demand for advertising on streaming platforms.
Key Drivers of Roku’s Revenue Growth
Roku credits the following factors for its impressive revenue increase:
- Expansion of third-party demand-side platform (DSP) integrations.
- Increase in video impressions, particularly from programmatic advertising.
- Growth of streaming hours to 36.5 billion, a year-over-year increase of 4.5 billion hours.
Roku Ads Manager Success
The Roku Ads Manager, which provides a self-serve platform for small and medium-sized businesses, has gained traction. Many digital marketers focused on e-commerce, mobile applications, and gaming are engaging more with this platform, leading to further advertising growth.
Financial Performance
Roku’s net income for the third quarter reached $24.5 million, a significant turnaround from the $9.0 million loss reported in the same period last year. This follows a successful second quarter, where the company achieved a net income of $10.5 million, breaking its profitability drought since 2021.
Cash Flow and Future Projections
Adjusted cash flow in the third quarter increased by 19%, amounting to $116.9 million. Despite this growth, analysts had projected slightly higher figures, leading to a 5% decline in Roku’s stock price to $100.03 in aftermarket trading.
Market Analyst Insights
Michael Morris, a media analyst with Guggenheim Securities, highlighted potential future gains from Roku’s deal with Amazon DSP. He emphasized that the collaboration should yield “meaningful” outcomes by 2026. Morris also estimates that Roku’s platform will expand to reach 96 million users by the end of the next quarter, aspiring to cross the 100 million streaming homes mark shortly thereafter.
