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Roku, Inc. ROKU Operating margin

Other financials

Income statement

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Revenue$1.2B+22.4%
Gross profit$564.9M+26.9%
Operating income$51.8M+190%
Net income$85.7M+412%
EPS (diluted)$0.57+400%

Balance sheet

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Cash & equivalents$1.6B-26.9%
Total debt$501.1M-13.2%
Total equity$2.7B+5.8%
Total assets$4.4B+4.1%

Cash flow

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Operating cash flow$199.1M+43.5%
CapEx$3.1M+62.3%
Free cash flow$196.0M+43.3%

Valuation

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Market cap$20.48B+35.7%
Enterprise value$19.33B+48.8%
P/E101.7×
P/S4.1×+0.6×

Profitability

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Gross margin44.2%+0.4pp
Net margin4.1%+2.9pp

Returns & leverage

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Return on equity7.8%+5.7pp
Debt / equity0.2×0.0×
Current ratio2.9×0.0×

Where this comes from

Calculated from Roku, Inc.’s reported figures.

Based on trailing twelve months.

The official record: Roku, Inc.’s 10-Q, filed October 31, 2025, on SEC EDGAR. View the filing →

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Questions, answered.

What is Roku, Inc.'s operating margin?
Roku, Inc. (ROKU) reported operating margin of -2.4% in Q3 2025.
How has Roku, Inc.'s operating margin changed year-over-year?
Roku, Inc.'s operating margin increased by 66.5% year-over-year, from -7.3% to -2.4%.
What is the long-term trend for Roku, Inc.'s operating margin?
Over 2 years (2022 to 2024), Roku, Inc.'s operating margin has grown at a 45.1% compound annual growth rate (CAGR), from -22.1% to -46.5%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.