Roku shares jump after earnings beat as premium subscriptions hit record net adds
Roku stock rose after the company beat estimates, swung to profit, and guided above consensus. Management pointed to accelerating subscription adoption and plans to bundle premium subscriptions.
Roku shares rallied after the streaming platform posted a strong quarter and optimistic guidance, signaling improved operating momentum.
## Key results
CNBC reported the company exceeded analyst estimates (LSEG):
- **EPS:** **$0.53** vs **$0.28** expected
- **Revenue:** **$1.39B** vs **$1.35B** expected
Roku also swung to profitability year over year, with CNBC citing **$80.5M** in net income versus a prior-year loss.
## What’s driving the story
Management highlighted **premium subscriptions** — which let users subscribe to multiple streaming services via Roku — as a key growth engine. CNBC said Roku described the quarter as its “biggest quarter ever” for net adds to premium subscriptions.
Roku also expects to roll out **subscription bundles** this year.
## Guidance and market read-through
CNBC reported:
- Current-quarter revenue guidance of **$1.2B**, above StreetAccount consensus
- Full-year revenue guidance of **$5.5B**, also above consensus
For investors, upside guidance can matter as much as the headline beat because it affects expectations for ad demand, platform engagement, and Roku’s path to sustainable margins.
## What to watch
- Adoption and churn for premium subscriptions and new bundles
- Advertising demand and the impact of distribution/measurement partnerships
- Any updates on the company’s target to surpass **100M streaming households**
_Source: CNBC (link above). Topic: stock-markets._
Source: CNBC