Roku Subscription Revenue Grows 26% to $548 Million in Q2 2026

advertising earnings roku streaming subscription revenue Aug 07, 2026

Roku’s new financial reporting gives subscription operators a clearer look at its growing subscription business, as both subscriptions and advertising helped drive a strong second quarter.

Roku’s subscription business continued its strong growth in the second quarter, helping push total company revenue to approximately $1.35 billion, up 22% from a year ago.

Beginning this year, Roku started reporting Advertising and Subscriptions separately instead of grouping both businesses under Platform revenue. For subscription operators, that gives us a much clearer look at the size of Roku’s subscription business and how quickly it is growing.

Subscription revenue reached approximately $548 million in the second quarter, up 26% year over year. Advertising revenue increased 25% to approximately $673 million. Together, the two businesses drove Platform revenue to approximately $1.22 billion, up 25%.

The growth follows a strong first quarter. Subscription revenue reached approximately $519 million, up 30%, while Advertising revenue grew 27% to approximately $613 million. Excluding Roku’s acquisition of Frndly TV, first-quarter Subscription revenue grew 23%.

Roku’s Subscriptions segment covers more than its own streaming services. It includes subscriptions sold to consumers through Roku, revenue shares from content partners, Premium Subscriptions and Roku-owned subscription services.

In other words, Roku can make money when consumers subscribe to other streaming services through its platform.

How Discovery Supports the Subscription Business

What viewers see when they open Roku matters to the subscription business.

Roku’s Home Screen, search and AI-powered recommendations can surface programming and subscription services to viewers. Those discovery tools can lead directly to subscription sign-ups through Roku.

The company reported its highest-ever quarter for Premium Subscription sign-ups in the first quarter.

Major sporting events can create another opening. Roku said its Advertising and Subscriptions businesses both benefited from the FIFA World Cup during the second quarter.

That gives Roku more than one way to make money from the same viewer relationship. Advertising generates revenue as audiences watch. Roku can also earn subscription revenue when viewers sign up for services through its platform.

Profit and Cash Flow Improve

Roku also reported a sharp improvement in profitability.

Net income reached approximately $164 million, compared with $10.5 million a year ago. Adjusted EBITDA, a measure Roku uses to track operating performance, increased to approximately $254 million from $78 million.

Roku also generated approximately $704 million in free cash flow over the past 12 months, up from approximately $539 million at the end of the first quarter.

Simply put, Roku is turning more of its revenue growth into profit and cash. The company has said it is targeting $1 billion in annual free cash flow by 2028, if not sooner.

Fox Deal Changes Roku’s Earnings Routine

This was Roku’s first quarterly earnings report since the company agreed in June to be acquired by Fox Corporation.

Fox plans to acquire Roku for $160 per share in a cash-and-stock transaction valuing Roku at approximately $22 billion in enterprise value. The deal is expected to close in the first half of 2027, subject to shareholder and regulatory approvals and other closing conditions.

Because the transaction is pending, Roku did not provide updated financial guidance or hold its usual quarterly earnings call.

Fox has pointed to Roku’s subscription business as part of the value of the deal. Its transaction materials cite tens of millions of Roku-billed subscriptions, along with Roku’s advertising business and direct relationship with streaming households.

INSIDER TAKE

Roku’s new reporting gives subscription operators something useful: a clearer view of a subscription business that was previously buried inside a larger Platform number.

At approximately $548 million for the quarter, Subscriptions is moving closer in size to Roku’s $673 million Advertising business. Both grew about 25% year over year.

What stands out is how closely the businesses connect.

Roku sits at an important point in the subscriber journey. Viewers turn on their televisions and start looking for something to watch. Roku’s search, recommendations and Home Screen can influence what they find and which services they subscribe to.

That puts Roku in an interesting position. It can earn advertising revenue from what viewers watch and subscription revenue when they sign up for services through Roku.

For subscription operators, Roku is worth watching. Its newly separated numbers give us a much clearer view of how subscription distribution and advertising can grow alongside each other.