Roku Inc Q3 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Cory Carpenter - JPMorgan Chase & Co - Analyst : <_ALACRA_META_ABSTRACT>Anthony, hoping you could expand on the trends you saw this quarter in the platform business and how you're thinking about the growth drivers in 4Q in 2026? And Dan, maybe a question for you. You bought back 50 million shares this quarter. So I thought it would be helpful to hear your latest thoughts on capital allocation priorities given your cash balance.

Question: Brent Navon - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Just want to look -- in your shareholder letter, you cited progress from third-party DSPs and Roku Ad Manager for advertising. Any way to frame how big each of those businesses are and what their underlying growth rates are? And then just to circle back to the opportunity in '26 for you guys. It seems like you guys are growing 20% organic ex political, ex-ASC 606 and 3Q. Your guide implies somewhat similar to 4Q. It seems like there's a lot of irons in the fire that you just mentioned. Are there offsets that we should also be contemplating or tough comps because it seems like you have momentum in Ad Manager? You have the Amazon DSP ramp, a political year, potential improvements in M&E. So I just want to make sure we're thinking through all the pieces correctly? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 9:00PM, ROKU.OQ - Q3 2025 Roku Inc Earnings Call

Question: Justin Patterson - KeyBanc Capital Markets Inc - Analyst : Great. Could you expand a little bit more on what this new home screen means for the business? How should we think of it influencing engagement and monetization versus the existing home screen. And then stepping back just around the deeper DSP integrations. There have been a lot of investor questions around just what comes after the DSP integration. So would love to hear about just what other ad product innovation you have going forward? And how you think that will help sustain platform revenue growth?

Question: Laura Martin - Needham & Company LLC - Analyst : My one for Anthony is on data. So I understand that all these new revenue streams you're working on used Roku's best-in-class data. Do you have any updated feeling about licensing your best-in-class data to the LLM, which you're spending at Meta $72 billion this year and Gemini at $85 billion this year, and they're running out of data, these LLM. So you guys have, I think, a revenue stream that is really valuable that you're not utilizing at all. And then for Charlie or Dan. Lots and lots of -- so there's auction density that you're working on. There is subscription revenue you're working on, and you didn't mention shoppable. Is that sort of the order you see in terms of driving upside from these, let's call them, ancillary or newer revenue streams over the one to two years? First would be getting the sellout rate higher, second would be the subscription, and then third would be shopping? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 9:00PM, ROKU.OQ - Q3 2025 Roku Inc Earnings Call

Question: Michael Nathanson - Moffettnathanson LLC - Analyst : I have two, Charlie, Dan. Charlie, as more and more sports content moves to streaming, it feels like you guys have a major opportunity here with sports experiences. Can you talk a bit about what you're seeing to date? Is it driving revenue growth? And then longer term, do you envision at a time, when I can actually watch all my sports in one experience zone, right? So instead of going to different apps, can I just have one centralized aggregation place to watch my sports, that's for you. And then for Dan, I just want to confirm, you said distribution revenues are growing faster than advertising and you had one new launch. But I think we had both Fox and ESPN launched in the quarter. So is there a timing issue because those are the two major launches? Just want to confirm that.

Question: Michael Nathanson - Moffettnathanson LLC - Analyst : Faster than advertising.

Question: Vasily Karasyov - Cannonball Research LLC - Analyst : Dan, I have a question for you. Now that we have had a few quarters in a row of very steady growth in platform revenue, and you and Anthony and Charlie outlined the growth drivers for the years ahead, can you help us think in terms of ARPU growth, given where your user base is growing and the platform revenue growth? If I were to think sort of in the ballpark terms, would ARPU grow at double the rate of the platform revenue growth in the midterm? Just if you could help us dimensionalize that trajectory would be really great.

Question: Vasily Karasyov - Cannonball Research LLC - Analyst : I'm sorry, you said faster, faster than the active accounts growth or than the platform revenue growth?

Question: Ross Walthall - Cleveland Research Co LLC - Analyst : I just wanted to ask a little more detail on the Amazon DSP partnership. I know it's early days, but can you talk to you what the rollout looks like from here? Any customer feedback and whether this could be a material driver going into either Q4 of '26?

Question: Ross Walthall - Cleveland Research Co LLC - Analyst : That's great. One other question on the self-serve business. Do you think you have the right tech and partnerships in place to really scale this, like are all the pieces in place? Or are there like additional capabilities or partnerships that you need to add? And just ultimately, like where can this business go long term?

Question: Alan Gould - Loop Capital Markets LLC - Analyst : I've got two, please. First, on the Amazon, just one quick follow-up. What are the key features and functionality that Amazon provides that the other DSPs don't in addition to diversification? Is the key issue there, the frequency capping? And then for Dan, when I look at 3Q and 4Q platform growth, and you back out friendly and political, if you were to also back out ASC 606, would the numbers be north of 20% and would 4Q still be growing quicker than 3Q?