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By India McCarty
Streaming device company Roku just had a majorly successful third-quarter, making it the first time it has had a positive operating income since 2021.
“For Q3, Roku posted revenue of $1.21 billion, up 14%, and net income of $24.8 million (versus a net loss of $35.8 million in the year-earlier period),” Variety explained, adding that meant shareholders earned 16 cents per diluted share.
This exceeded Wall Street analysts’ predictions, who forecast a revenue of $1.1 billion and earnings of 9 cents per share.
Related: Is Roku Still Staying Afloat in the Streaming Wars?
So, what was behind this unexpected growth? Roku’s total streaming hours for 2025’s Q3 were 36.5 billion — up 12% year over year.
“All of this reinforces our commitment to delivering long-term shareholder value by growing free cash flow per share. Looking ahead, we are confident in our ability to deliver double-digit Platform revenue growth while increasing operating margins in 2026 and beyond,” Roku CEO Anthony Wood and COO and CFO Dan Jedda wrote in the quarterly shareholder letter.
The company is also expecting more growth in Quarter 4, predicting total net revenue of approximately $1.35 billion, or a 12% growth.
One of the components behind all this growth? Roku’s recently-launched streaming service, Howdy. It launched earlier this year, giving subscribers almost 10,000 hours of content from partners like Lionsgate, Warner Bros. Discovery and FilmRise, for just $2.99/month.
“Priced at less than a cup of coffee, Howdy is ad-free and designed to complement, not compete with, premium services,” Wood said in a statement. “We’re meeting a real need for consumers who want to unwind with their favorite movies and shows uninterrupted and on their terms. Howdy is a natural step for us at Roku, extending our mission to make better TV for everyone, by making it affordable, accessible, and built for how people watch today.”
In the Q3 shareholder letter, Roku’s execs said, “With nearly 10,000 hours of fan favorites as diverse as THE NOTEBOOK, NURSE JACKIE, and KIDS IN THE HALL, Howdy fills a white space and is designed to complement viewers’ other streaming services. We see a significant untapped opportunity for a low-cost, ad-free streaming service, and we are leveraging the power of our platform to drive cost-efficient sign-ups and engagement, similar to our success building The Roku Channel.”
Roku’s recent moves to boost their profits are definitely paying off, making them a contender in the ongoing streaming wars.
Read Next: Why Roku Launched Paid Ad-Free Platform, Howdy
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