Roku's Subscription Strategy Driving Revenue Growth

by MarketNewsData
  1. Roku is focusing on subscription growth through personalized merchandising and AI-powered features on the Home Screen. The acquisition of Frndly TV and partnership with Apple TV+ aim to drive more sign-ups and conversions within the platform.
  2. Roku reports "tens of millions" of Roku-billed subscriptions each month, with growing user participation and strong future growth potential. Platform revenues in Q1 2025 reached $881 million, up 17% year over year, primarily driven by increased monetization from subscriptions.
  3. Roku faces competition from Amazon and Disney in the subscription business. Amazon’s Prime Video Channels and Disney’s bundled offerings challenge Roku’s efforts to grow Roku-billed subscriptions.
  4. ROKU shares have risen 18.6% YTD, with a Price/Cash Flow ratio of 41.56X. The Zacks Consensus Estimate for Q2 2025 loss is 17 cents per share, indicating 29.17% year-over-year growth.
  5. Roku currently holds a Zacks Rank #1 (Strong Buy) with potential for strong growth. Consider these 5 potential home runs recommended by Zacks Investment Research for the next 30 days.

Read more at Nasdaq: Can Roku’s Subscription Push Power Its Revenue Growth in 2025?

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