Roku reported third-quarter net revenue of $1.5 billion, up 24% year over year and above analysts’ expectation of $1.41 billion. Net income reached $183 million, a 639% increase from a year earlier, with diluted earnings per share of $1.20 compared with the $0.55 analysts had forecast, according to Zacks consensus estimates.

The company said its media and entertainment vertical recorded its strongest year-over-year revenue growth in four years, as media companies invested on the Roku platform to promote content and services. Platform revenue rose 34% to $1.3 billion, supported by growth in advertising and subscriptions. Viewers streamed 39.9 billion hours, up 9% year over year.

Advertising revenue increased 23% to $727 million, marking Roku’s ninth consecutive quarter of double-digit growth. The company cited a shift toward higher-margin advertising products and strong political advertising results. Political ad spending on the platform during the quarter exceeded the comparable period in the 2024 U.S. presidential election cycle.

Subscription revenue also grew 23%, reaching $581 million. Its gross margin was 40.9%, down about 180 basis points, which Roku attributed to a strategic shift toward premium subscriptions. The company also pointed to the completed rollout of a redesigned U.S. home screen, saying improved content recommendations have helped reduce cancellations of premium subscriptions. The new home screen is now being rolled out internationally.

The results come as Roku awaits the completion of its proposed acquisition by Fox. Announced in June, the deal values Roku at $22 billion and would involve Fox paying $160 per share in cash and Fox Class A common stock. It would bring Fox’s sports, news and entertainment content and Tubi together with Roku’s connected TV platform and The Roku Channel.

Fox CEO Lachlan Murdoch said Monday that the company is working constructively with the Department of Justice to complete the transaction. Roku said the deal has been approved by shareholders and foreign regulatory bodies.

Roku did not provide a financial outlook or hold an earnings call, citing the pending transaction. CEO Anthony Wood said in a shareholder letter that the company remains on track for the second-half 2026 forecast included in its proxy statement, and described the acquisition as an opportunity to scale faster and innovate more aggressively for viewers, partners and advertisers.

Sources: The Hollywood Reporter.