Roku, a pioneer in digital streaming, will report fourth-quarter results this week. Despite challenges in the fourth quarter, the stock is up only 4% in the past year after a strong 2025. Investors are looking for a strong performance to potentially boost the stock higher again.

Roku needs to impress with its fourth-quarter results, targeting a record $1.35 billion in revenue, a 12.4% increase from the previous year. A modest profit of $40 million would mark the third consecutive quarterly profit for the company. Investors are eager to see if Roku can deliver strong financials after a tough start to 2026.

A key factor for Roku’s success will be its ad revenue growth, particularly after a promising ad tech partnership with Amazon in 2025. Roku’s video advertising business outpaced the U.S. over-the-top and digital ad markets in the third quarter. Investors will be watching for continued growth in this segment during the upcoming earnings report.

Roku’s hardware sales, including devices like streaming sticks and TVs, will also play a role in its fourth-quarter performance. Device sales typically spike during the holidays, potentially impacting overall margins. Roku will need to navigate this challenge and ensure that negative margins on hardware sales do not weigh down its quarterly results.

Read more at Nasdaq: 3 Things Roku Stock Needs to Get Right This Week