Research Analysts Offer Predictions for Roku Q3 Earnings

Key Points

• Wedbush analysts have raised their Q3 2025 earnings per share estimate for Roku to $0.07, moving up from a previous estimate of $0.06, while maintaining an "Outperform" rating with a price target of $110.00.
• Roku recently reported earnings of $0.07 per share, surpassing the consensus estimate of ($0.16), alongside revenue of $1.11 billion, which was higher than expected.
• Institutional investors own approximately 86.30% of Roku's stock, indicating strong institutional interest, while the company's stock has undergone significant insider selling recently.

Roku, Inc. (NASDAQ:ROKU - Free Report) - Investment analysts at Wedbush boosted their Q3 2025 earnings per share estimates for Roku in a research note issued on Friday, August 1st. Wedbush analyst A. Reese now anticipates that the company will earn $0.07 per share for the quarter, up from their previous estimate of $0.06. Wedbush has a "Outperform" rating and a $110.00 price target on the stock. The consensus estimate for Roku's current full-year earnings is ($0.30) per share. Wedbush also issued estimates for Roku's Q2 2026 earnings at $0.03 EPS, Q4 2026 earnings at $0.44 EPS and FY2027 earnings at $1.75 EPS.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, beating the consensus estimate of ($0.16) by $0.23. The firm had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.47% and a negative net margin of 1.40%. The business's quarterly revenue was up 14.7% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.18) earnings per share.

A number of other equities research analysts also recently issued reports on the company. Loop Capital raised Roku from a "hold" rating to a "buy" rating and boosted their price target for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. UBS Group boosted their price target on Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research report on Friday. Benchmark reissued a "buy" rating and set a $130.00 price target on shares of Roku in a research report on Friday, May 2nd. Piper Sandler boosted their price target on Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research report on Thursday, July 10th. Finally, JMP Securities boosted their price target on Roku from $95.00 to $110.00 and gave the company a "market outperform" rating in a research report on Monday, July 21st. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, nineteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $99.36.

Roku Trading Down 15.1%

Roku stock opened at $79.98 on Monday. The stock has a fifty day moving average price of $83.77 and a 200 day moving average price of $76.98. Roku has a 52 week low of $48.33 and a 52 week high of $104.96. The firm has a market capitalization of $11.67 billion, a P/E ratio of -190.43 and a beta of 2.05.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Motley Fool Asset Management LLC acquired a new stake in Roku during the second quarter valued at approximately $207,000. IQ EQ FUND MANAGEMENT IRELAND Ltd raised its stake in Roku by 194.6% during the second quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 119,527 shares of the company's stock valued at $10,505,000 after buying an additional 78,948 shares in the last quarter. Y Intercept Hong Kong Ltd raised its stake in Roku by 162.2% during the second quarter. Y Intercept Hong Kong Ltd now owns 24,629 shares of the company's stock valued at $2,165,000 after buying an additional 15,234 shares in the last quarter. OVERSEA CHINESE BANKING Corp Ltd raised its stake in Roku by 7.4% during the second quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 3,563 shares of the company's stock valued at $313,000 after buying an additional 244 shares in the last quarter. Finally, Wealthfront Advisers LLC raised its stake in Roku by 18.0% during the second quarter. Wealthfront Advisers LLC now owns 6,646 shares of the company's stock valued at $584,000 after buying an additional 1,012 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $89.64, for a total value of $2,241,000.00. Following the completion of the transaction, the chief executive officer owned 11,953 shares of the company's stock, valued at approximately $1,071,466.92. This represents a 67.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $95.00, for a total value of $20,193,105.00. Following the completion of the transaction, the insider directly owned 200 shares of the company's stock, valued at $19,000. This represents a 99.91% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 308,873 shares of company stock valued at $28,076,913. Insiders own 13.98% of the company's stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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