
Roku (ROKU) Stock Forecast & Price Target
Roku (ROKU) Analyst Ratings
Bulls say
Roku has established itself as the leading streaming operating system in the United States with over 90 million streaming households and 127 billion streaming hours in 2024, accounting for 6.1% of total streaming time, reflecting a year-over-year increase. The company's revenue streams are bolstered by a projected 15.4% growth in platform revenue to $4.75 billion, fueled by increased fees from subscription services and the rising popularity of its ad-supported Roku Channel. Furthermore, Roku anticipates significant EBITDA margin expansion by around 200 basis points in 2026, driven by operating leverage on advertising growth and a focus on enhancing free cash flow, positioning the company for accelerated profitable growth in the future.
Bears say
Roku faces potential revenue deceleration due to the volatility in the advertising market, which could negatively impact its core platform revenue growth, currently estimated to drop from 19% in 4Q25 to approximately 12% in 1Q26. Additionally, the company's device segment continues to operate at a loss as Roku pursues a loss-leader strategy, with further concerns arising from increasing content costs for The Roku Channel, which could hinder profit margins. A broader macroeconomic slowdown may exacerbate these challenges by tightening advertising budgets, contributing to a negative outlook for the company's financial performance.
This aggregate rating is based on analysts' research of Roku and is not a guaranteed prediction by Public.com or investment advice.
Roku (ROKU) Analyst Forecast & Price Prediction
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