-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
ROKU reported Q1 2026 EPS of $0.57, beating consensus of $0.35. Total revenue was $1.25B, up 22% Y/Y, driven by robust Platform segment growth of 28% Y/Y to $1.13B (91% of total revenue). We think ROKU's strategic focus on enhancing the Roku Experience and content discovery positions the company well, as evidenced by The Roku Channel becoming the #2 most engaged app on the platform and ROKU maintaining its #1 streaming platform position in the U.S., Canada, and Mexico. Management raised 2026 guidance with total revenue expected at $5.535B and Platform revenue growth of ~21% Y/Y to $5.0B, with Platform gross margins at the high end of the 51%-52% range. We believe ROKU is well-positioned for sustained growth, supported by strong advertising momentum with 27% Y/Y growth to $612.7M and exceptional subscription revenue growth of 30% Y/Y to $518.5M. The company maintains a strong balance sheet with $1.6B in cash, zero debt, and reaffirmed its long-term target of achieving $1B in free cash flow by 2028.