Roku

ROKU

Entertainment · Communication Services

Price

$157.49

+0.37 (+0.24%)

Market Cap

$23.36B

Exchange

NASDAQ

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Strong

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Good

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Share count rising — dilution

+6.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 141.7M (2021) → 150.9M (2025)

Winston Score History

The full picture

Roku makes software and hardware that helps people watch streaming TV. Its main products are the Roku streaming device (a small stick or box you plug into your TV) and the Roku operating system, which is built directly into millions of smart TVs from brands like TCL and Hisense. Roku is one of the largest streaming platforms in the United States, with tens of millions of active accounts watching content through its system.

Roku makes most of its money from advertising and taking a share of subscription revenue when users sign up for services like Netflix or Hulu through its platform — this is called the "Platform" segment. It also sells its streaming devices, though that hardware business has thin margins. Roku operates mainly in the US but is expanding in Canada, Latin America, and Europe. Its main competitive advantage is how deeply embedded its software is in low-cost smart TVs, but it faces growing pressure from Amazon, Google, and Apple, who run competing streaming platforms.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+21.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

>+1,000% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$729M/ year

→ Flat (+1% vs prior year)

15.4% of revenue

In line with sector average (12%)

Steady R&D investment year-over-year

Insider Activity

12.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$2.6B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Roku is a rare growth stock that's already generating positive cash flow while growing at 22%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

49.7%

Healthy — 49.7% gross margin

Profit after running costs

Operating Margin

10.8%

Modest — 10.8% operating margin

Return on the money invested

ROCE

8.5%

Below par — 8.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+18.5%

Fast-growing sales (+18.5% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

291%

Turns 291% of profit into real cash

Spare cash per sale

FCF Margin

19.6%

Converts sales into free cash efficiently (19.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.14

Conservative — low debt load (0.14)

Covers its interest

Interest Cover

129.44x

Comfortably covers interest (129.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

65.6x

Expensive — P/E 65.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+38.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (65.6 → 26.8)

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Dividends

Not applicable for this business.

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