Roku’s Stock Gains, Analysts Raising Into Earnings – What To Expect

Roku's stock (NASDAQ: ROKU) is quietly climbing into earnings, with the Q2 print after the closing bell going a little under the radar. The streaming platform may be overshadowed somewhat by some of the more illustrious names reporting today like Apple, and Amazon, yet there could be reason to pay attention.

The company's recent performance, coupled with strategic acquisitions and positive analyst sentiment, has provided some optimism heading into earnings, with Roku up 2.9% on the day, 5% on the week.

Roku's own earnings guidance for Q2 2025 projects total net revenue of $1.07 billion matches the street estimate, representing an 10.7% year-over-year increase. This growth is expected to be primarily driven by a 14% rise in platform revenues, offsetting a projected 10% decline in devices revenues.

EPS losses are expected to improve on the quarter to -$0.16 from -$0.18 YoY, and -$0.19 in the most recent print.

For the full year, Roku forecasts total net revenue of $4.55 billion and a net loss of $30 million. These projections suggest a path towards profitability, with the company aiming for positive operating income by 2026.

The company's strategic moves, including the acquisition of Frndly TV for $185 million, aim to enhance its subscription offerings and user engagement. Partnerships with companies like Airbnb, Amazon, and Adobe are also expected to strengthen Roku's advertising and subscription momentum.

Analysts have raised expectations on the stock ahead of Q2, with JPMorgan moving to $100 (Overweight rating), seeing Roku as being well positioned to beat estimates and increase guidance.

Citizens JMP also raised their price target to $110 (Outperform), seeing the partnership with Amazon, and integration with third-party DSPs generally being a significant opportunity to grow demand.

Earlier this month, Keybanc upgraded the stock to Overweight with a price target of $115 on advertising tailwinds, BofA raised to $110 (Buy rating), whilst Needham moved up to $100, expecting to see labor force productivity improvements driving revenue higher.

With the company having exceeded EPS estimates in each of the past four reports, optimism could be well placed. Analysts are proving to be more bullish leading into earnings, but can Roku deliver another beat?