Roku Inc. (ROKU) down 15% despite returns to Profitability in Q2

by MarketNewsData

Roku reported earnings on July 31 after the close. The company returned to profitability in Q2 and beat revenue and earnings estimates, but the stock sold off 15% as macroeconomic pressures and tariff risks clouded the outlook despite strength in its platform business.

Stock Performance (August 1):
Open: $85.00
High: $90.98
Low: $79.10
Close: $79.98 (−15.1%)

Key Financials:

  • Revenue: $1.11 billion, +15% YoY
  • GAAP EPS: $0.07 vs. est. −$0.15
  • Platform revenue: $975 million (+18% YoY)
  • Device revenue: $135.6 million (−6% YoY)
  • Net income: ~$10.5 million
  • Stock buyback: $400 million authorized
  • Raised full-year platform revenue outlook to $4.08 billion

Context:
Platform engagement is growing, and profitability improved, but investors reacted to the external headwinds impacting devices and hardware margins.

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