📊 AI Stock Rating — Summary

For the quarter ending September 30, 2025, Roku reported revenue of $1.21 billion with a net income of $24.8 million, translating to an EPS of $0.17. The net profit margin stood at approximately 2%, and free cash flow was robust at $126.5 million. Year-over-year growth was evident in the top-line figures. As of the valuation date, cash reserves are substantial at over $1.57 billion, comfortably covering the negative net debt position of $1.12 billion, indicating strong financial health. Despite no dividends, Roku has engaged in $50 million of stock repurchases, hinting at efforts to enhance shareholder value via alternative routes, as evidenced by price targets between $88.5 and $135. Analyst targets suggest potential upside relative to these price levels. Over the last year, investors should assess how the share price has reacted to these earnings and broader market factors. Overall, Roku displays profitable growth, robust cash flow generation, and a strong balance sheet, although valuation metrics are key for further insights into comparatives and potential value creation.

AI Score Breakdown

Revenue Growth — Score: 8/10

Roku's revenue reached $1.21 billion for the quarter, showing year-over-year growth. The growth appears stable, with key drivers likely being its expanding user base and increased streaming hours.

Profitability — Score: 7/10

Net income of $24.8 million marks a positive turn with an EPS of $0.17. Despite modest net margins (around 2%), the return to profitability indicates improved efficiency.

Cash Flow Quality — Score: 9/10

Free cash flow was strong at $126.5 million. The company executed $50 million in stock buybacks, demonstrating healthy liquidity without the need for dividends.

Leverage & Balance Sheet — Score: 9/10

With net debt at a negative $1.12 billion, Roku boasts a strong balance sheet with ample cash reserves ($1.57 billion) that enhance its financial resilience.

Shareholder Returns — Score: 8/10

While there were no dividends, Roku's $50 million buybacks supported its share price performance. Investors should note any positive 1-year price change over this period that may be driving returns.

Analyst Sentiment & Valuation — Score: 8/10

Price targets up to $135 suggest room for appreciation. Without valuation metrics like P/E or FCF yield, sentiment infers a favorable outlook relative to Roku's market position and growth prospects.

⚠ AI-generated — informational only, not financial advice.