Roku (ROKU) remains unprofitable, with losses expanding at an annual rate of 35.1% over the past five years. Earnings growth for the most recent year cannot be directly compared to the five-year average due to continued unprofitability, and net profit margins have not shown improvement. Revenue growth is forecast at 10.1% per year, slightly lagging behind the US market average of 10.4%. Analysts expect Roku to reach profitability within the next three years, with earnings anticipated to grow at a robust 44.17% per year.
See our full analysis for Roku.
Next up, we’ll see how these figures match up against the narratives investors follow most closely. We will also examine whether the numbers reinforce or challenge market expectations.
See what the community is saying about Roku
NasdaqGS:ROKU Earnings & Revenue History as at Nov 2025
Analysts project profit margins rising from -1.4% today to 6.1% within three years, signaling a swing toward profitability that has not yet shown up in the reported net profit margins.
The consensus narrative emphasizes that investments in content and self-service ads are starting to pay off, with anticipated long-term expansion of both revenue and earnings.
Analyst estimates see earnings reaching $372.1 million by September 2028, up from a current loss of $61.5 million.
Margin gains are expected to come from operational efficiency and higher platform engagement as digital ads and proprietary content scale.
Consensus sees Roku’s push into high-margin digital ads and efficiency moves as the key story this year. Read the full Consensus Narrative for all the details. 📊 Read the full Roku Consensus Narrative.
Roku’s Price-To-Sales Ratio of 3.6x is higher than the US Entertainment industry average (1.6x), yet it trades below peers, whose average is 3.9x. This adds subtle valuation appeal even as it looks elevated versus the broader sector.
According to the consensus narrative, this pricing suggests investors are willing to pay up for Roku relative to the average entertainment company, but not as much as for direct competitors with comparable growth and platform metrics.
The company’s positioning benefits from persistent user growth and platform engagement, which the consensus narrative notes are essential for sustaining its valuation premium.
While the Price-To-Sales discount to peers strengthens the case, slower revenue growth versus the overall market (10.1% forecast for Roku versus 10.4% for the US) means it must keep delivering operational progress to justify this premium.
Story Continues
Roku currently trades at $106.13, which is a notable discount to its DCF fair value estimate of $146.68. This provides potential upside if margins and growth targets are realized.
The analysts’ consensus view highlights that while the share price is close to their average one-year price target of $106.17, the fair value gap indicates the market may be underpricing Roku’s long-term profitability and margin expansion.
Consensus also flags that for these targets to hold, Roku’s price-to-earnings would need to reach 53.9x on 2028 estimates, above the US entertainment industry’s current 38.2x.
The relatively narrow spread between current price and analyst target reinforces the market’s wait-and-see stance for proof of margin gains and durable earnings.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Roku on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
Have a unique take on the figures? Share your viewpoint and shape your personal narrative in just a few minutes. Do it your way
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Roku.
Despite projections for profitability, Roku’s slower revenue growth and unproven margin improvements suggest that achieving steady, reliable performance could remain a challenge.
If you want confidence in consistent results, check out stable growth stocks screener (2103 results) where you’ll find companies delivering stable revenue and earnings regardless of market cycles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ROKU.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com