ROKU, INC (ROKU) · Material Event (8-K) SEC Filing

EX-99.1 2 a04fy2026q2exhibit991.htm EX-99.1 Document Exhibit 99.1 Fellow Shareholders, August 6, 2026 Following our outstanding results in Q1, we delivered another very strong quarter. In Q2, we grew Platform revenue 25% year over year (YoY), well ahead of our outlook, driven by ongoing momentum in both Advertising and Subscriptions. We continued our track record of profitable growth, generating net income of $164 million, Adjusted EBITDA of $254 million, and Free Cash Flow (TTM) of $704 million all record highs. These results reinforce our path of sustaining double-digit Platform revenue growth, expanding margins, and growing our north star metric of Free Cash Flow per share.Second Quarter 2026 Key Results Total net revenue was $1.35 billion, up 22% YoY Platform revenue was $1.22 billion, up 25% YoY Total gross profit was $674 million, up 35% YoY Streaming Hours were 37.9 billion, up 7% YoY The Roku Channel was the #2 app on our platform by engagement in the U.S. and achieved a platform best share of TV viewing on Nielsen's The Gauge for May1 Summary Financials ($ in millions) Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 YoY % Advertising $539.1 $591.2 $714.7 $612.7 $672.8 25 % Subscriptions 436.4 473.4 509.3 518.5 548.2 26 % *Platform revenue 975.5 1,064.6 1,224.0 1,131.2 1,221.0 25 % Devices revenue 135.6 146.0 170.9 117.6 133.7 (1) % Total net revenue 1,111.0 1,210.6 1,394.9 1,248.9 1,354.7 22 % Advertising 301.6 345.5 428.2 371.0 420.0 39 % Subscriptions 196.0 202.3 218.4 213.1 226.7 16 % Platform gross profit 497.7 547.8 646.7 584.1 646.8 30 % Devices gross profit (loss) 0.0 (22.9) (39.9) (19.1) 26.9 nm Total gross profit 497.7 524.9 606.8 564.9 673.7 35 % Advertising gross margin % 56.0 % 58.4 % 59.9 % 60.5 % 62.4 % 6.5 pts Subscriptions gross margin % 44.9 % 42.7 % 42.9 % 41.1 % 41.4 % (3.6) pts Platform gross margin % 51.0 % 51.5 % 52.8 % 51.6 % 53.0 % 2.0 pts Devices gross margin % 0.0 % (15.7) % (23.3) % (16.3) % 20.1 % 20.1 pts Total gross margin % 44.8 % 43.4 % 43.5 % 45.2 % 49.7 % 4.9 pts Research and development 178.0 182.2 184.6 189.5 179.7 1 % Sales and marketing 243.3 242.1 255.3 221.2 223.2 (8) % General and administrative 99.7 91.1 100.9 102.5 124.6 25 % Total operating expenses 521.0 515.4 540.8 513.2 527.5 1 % Income (loss) from operations (23.3) 9.5 66.0 51.8 146.2 nm Net income (loss) 10.5 24.8 80.5 85.7 164.2 1464 % *Adjusted EBITDA A 78.2 116.9 169.4 148.4 254.3 225 % Adjusted EBITDA margin % 7.0 % 9.7 % 12.1 % 11.9 % 18.8 % 11.7 pts Cash flow from operations (TTM) 396.4 455.4 483.7 544.1 719.0 81 % *Free cash flow (TTM) A 392.0 443.0 483.6 538.8 704.1 80 % * Key Performance Metric (KPM)A Refer to reconciliation at the end of this Letter.1 Nielsen's The Gauge May 2026 Roku Q2 2026 Shareholder Letter 1PlatformPlatform revenue grew 25% YoY to $1.22 billion, with gross margin of 53.0%. Growth was driven by meaningful contributions from both Advertising and Subscriptions, underscoring the increasing diversity of our monetization. The Roku Experience (RX), which includes our Home Screen, AI-powered recommendations, and all our content discovery features, remains a powerful competitive advantage that drives engagement, advertising, and subscriptions across our platform.In Q2, we began rolling out the new Roku Home Screen, our biggest update in more than a decade, shaped by deep behavioral insights and what we ve heard directly from customers. The Roku Home Screen is one of the most valuable pieces of real estate in TV. In the U.S. alone, it is used by more than half of broadband households, reaching them before they decide what to watch. Our new Home Screen is designed to maximize content discovery and personalization for our viewers, while simultaneously delivering benefits to our content partners and advertisers, and growing Platform monetization. We completed the rollout in the U.S. early in the third quarter, and results are encouraging. For example, our new Home Screen improved our ability to retain households in the U.S., resulting in more users we can serve and thus reducing overall costs to grow Streaming Households. We expect to roll out our new Home Screen to our international markets in the coming months.The new Roku Home Screen is focused on personalization and helping viewers find what to watch.To further help our viewers find content faster and engage more deeply with the Roku Experience, we are improving our search functionality. We are incorporating advanced AI for more accurate interpretations of our viewers queries, even when the queries are broad, conversational, or only based on mood and context. We believe these improvements can strengthen Roku s monetization opportunities over time by supporting subscription conversion and retention, increasing monetizable Streaming Hours, and improving the performance of advertising and merchandising. Roku Q2 2026 Shareholder Letter 2AdvertisingAdvertising revenue grew 25% YoY to $673 million, and advertising gross margin expanded to 62.4%, up approximately 190 basis points QoQ and 650 basis points YoY, driven primarily by a mix shift toward higher-margin ad products. Video advertising on our platform once again outpaced both the U.S. OTT and digital ad markets2, underscoring the durability of Roku s differentiation significant scale, first-party data, and innovative ad technology. Our goal is to build the most performant CTV ad platform in the industry, with a key focus on deepening our programmatic capabilities through expanded third-party integrations. In Q2, third-party DSPs (demand-side platforms) accounted for nearly three-quarters of in-stream video ad spend on our platform. We have integrations with every major DSP, including Amazon DSP, The Trade Desk, Google DV360, and Yahoo, as well as major SSPs (supply-side platforms), including Magnite, Google Ad Manager, and FreeWheel. Roku Ads Manager, our self-service platform, continues to serve performance-focused and small and medium-sized business (SMB) advertisers. In Q2, we also announced a new demand partner, Smartly, the first to connect to Roku Ads Manager via Roku Ads API. Smartly is expected to add incremental performance revenue by early 2027. Together, this breadth of open partnerships and interoperability positions Roku to serve the largest global brands, the smallest local businesses, and everything in between. Our programmatic capabilities are also driving strong results in political advertising, and 2026 is off to a strong start. Q2 political advertising on the Roku platform exceeded the comparable quarter from the 2024 U.S. presidential election cycle. Like the broader industry, political ad spend on our platform is weighted toward the back half of the year, building through late Q3 and into Q4 ahead of Election Day. Given the growing importance of CTV in political campaigns and the strength of our scale, first-party data, and programmatic infrastructure, we are well-positioned to build upon this momentum for the duration of the election cycle.Our high-visibility, high-margin ad products across the Roku Experience contributed to our gross margin expansion in Q2. The Media Entertainment (M E) vertical continued to strengthen, posting one of its highest YoY growth rates in nearly four years. At the same time, spend from non-M E clients represented more than a third of total Roku Experience advertising revenue in Q2, which is evidence that our platform s appeal extends well beyond its traditional, endemic advertiser base. The Roku Experience delivered standout moments in Q2, both for marquee sporting events and for the advertisers who partnered with us around them. During the global soccer frenzy, for instance, leading brands partnered with us on sponsorships within the Roku Sports Experience, which reached viewers across multiple international markets. This was our first truly global sports activation and an early proof point for how we believe this platform can scale internationally over time. In the U.S., we now have officially branded zones for all four major sports leagues NFL, MLB, NBA, and the newly added NHL giving marketers an expanding set of premium and authentic ways to reach fans during momentous events.2 SMI (Standard Media Index) data OTT over the top Roku Q2 2026 Shareholder Letter 3Geico sponsorship of the NHL Zone and Progressive sponsorship of the Soccer ZoneSubscriptionsSubscriptions revenue grew 26% YoY to $548 million, with gross margin of 41.4%, down roughly 360 basis points YoY, with the largest factor being a mix shift toward Premium Subscriptions. We benefit as more sports move to streaming, and the power of our platform contributed to strong growth in what would normally be the softest quarter of the year for subscriptions. Recent months have been an exciting time for sports fans, and total sports viewing on the Roku platform in the U.S. was a Q2 high. During the NBA Playoffs, hours originating from one of our NBA discovery surfaces doubled YoY3. Q2 launches of FOX One and Peacock within Premium Subscriptions brought the World Cup to The Roku Channel in English and Spanish, respectively, in the U.S.. The World Cup was also available on our platform in markets outside the U.S. through Roku-billed DTC (direct-to-consumer) subscription services, including Vix, TSN, Paramount+, and Globoplay. These services, along with all matches, were aggregated and organized in our recently launched Soccer Zone within the Sports Experience driving hundreds of thousands of sign-ups in Q2 and making the tournament one of our largest cross-partner subscription acquisition events ever. 3 Capturing users who engage with NBA Zone or access NBA content on the platform through Sports Discovery surfaces Roku Q2 2026 Shareholder Letter 4World Cup in the U.S., Mexico, and the U.K.To make our Premium Subscriptions experience even better, we launched new features in FOX One, Apple TV, and Peacock, to give viewers the ability to pause and resume play of live programming. These features are popular with sports fans in particular, and we expect to roll out more DVR features in the coming months. We also continued to scale and enhance our owned-and-operated service Howdy , our premium, ad-free SVOD4 service for just $3 month. We added more popular films in the U.S., including Sinners and Minecraft, and launched the service in Mexico. We also took Howdy off platform, as a subscription option on Prime Video and as a standalone mobile app for iOS and Android. The power of the Roku Experience is unique, combining swift content discovery, seamless sign-up, easy subscription management, and targeted promotions. Our open and partner-friendly platform delivers tremendous value for both our viewers and our streaming service partners. DevicesDevices revenue was $134 million, down 1% YoY, with gross margin of 20.1%, which benefited from an IEEPA refund5 for tariff payments paid in Q2 2025 through Q1 2026. Excluding the IEEPA refund, Q2 Devices gross margin would have been (7.6%), net income would have been $127 million, and Free Cash Flow would have been $242 million. As a reminder, our Devices revenue is generated from the sale of our players and Roku-made TVs and does not include Roku TV models made and sold by our OEM6 licensing partners, which account for the largest portion of our overall unit volume. We continue to expand our Roku-made TV footprint, and in Q2 they represented approximately 5% of total TV unit sales volume in the U.S.7, achieved in roughly three years, powered by strength at Amazon and Best Buy and the continued ramp of Hiro Roku TV models at Target. 4 SVOD subscription video on demand5 IEEPA refunds are reimbursements to importers for unlawful duties collected under the International Emergency Economic Powers Act (IEEPA)6 OEM Original equipment manufacturer7 Source Circana, LLC, Retail Tracking, US, Roku Custom Retailer Scan Data for Smart TVs, Unit Share, Apr Jun 2026. Smart TV is defined as Web Brower only, Apps Web Browser, and Apps Only televisions. Roku Q2 2026 Shareholder Letter 5We continue to monitor pricing pressure resulting from tightening memory chip supply, a trend affecting the entire electronics industry. Importantly, the Roku TV OS requires significantly less dynamic memory (DRAM) and storage memory (Flash) than competing platforms, and this widening cost advantage is drawing more TV brands to Roku. We have expanded and diversified our OEM licensing relationships, including Hisense and TCL, with distribution across Walmart, Best Buy, Target and other retailers. We expect these partnerships to contribute to Roku TV model unit sales volume in the second half of 2026. Accordingly, we continue to anticipate distribution costs for Roku TV model sales, which represent a significant component of Sales Marketing (S M) expense, will be weighted toward the second half of the year. As a result, S M expense declined YoY in the first half of 2026, reflecting lower TV unit volumes, and we expect it to increase in the second half vs the first half as shipment volumes ramp. ConclusionWith our open and partner-friendly platform, we succeed when our partners succeed. We are committed to connecting viewers to great entertainment while giving publishers and advertisers effective ways to engage them. That alignment of interests is a foundation of our business and a core reason why more than 100 million households worldwide choose Roku as their TV streaming platform. As we look ahead, we remain focused on disciplined execution, investing in long-term growth opportunities, and creating value for our shareholders. We believe our scale, platform strategy, and financial strength position Roku to continue leading the evolution of TV streaming while delivering sustainable, long-term growth. Our pending acquisition by FOX is an extraordinary opportunity to accelerate our vision, allowing us to scale faster and innovate more aggressively for viewers, partners, and advertisers.Happy Streaming !Anthony Wood, Founder and CEO, and Dan Jedda, CFO and COOPending Acquisition by FOXOn June 15, 2026, Fox Corporation (Nasdaq FOXA, FOX) and Roku announced that they have entered into a definitive agreement under which FOX will acquire Roku. In light of the pending transaction, we will not host an earnings call and will not provide a financial outlook. About Roku, Inc.Roku pioneered streaming on TV. Today, it is the #1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed (Hypothesis Group, Dec. 2025). Roku connects viewers to the content they love, enables content publishers to build and monetize large audiences through advertising and subscriptions, and provides advertisers with unique capabilities to reach and engage consumers. Roku streaming players and Roku-made TVs are available at major retailers, and licensed Roku TV models are sold by leading TV brands in more than 15 countries around the world. Roku also owns and operates The Roku Channel, the home of premium and free entertainment Howdy, a low-cost subscription service and Frndly TV , a live TV streaming service. Roku is headquartered in San Jose, Calif., U.S.A.ROKU, ROKU TV, the Roku logo, HIRO, HOWDY, FRNDLY TV, HAPPY STREAMING and other trade names, trademarks or service marks of Roku appearing in this shareholder letter are the property of Roku or its affiliates. Trade names, trademarks and service marks of other companies appearing in this shareholder letter are the property of their respective holders. Investor RelationsConrad Groddcgrodd roku.com MediaKelli Rafterykraftery roku.com Roku Q2 2026 Shareholder Letter 6Use of Non-GAAP Measures In addition to financial information prepared in accordance with generally accepted accounting principles in the United States (GAAP), this shareholder letter includes certain non-GAAP financial measures. These non-GAAP measures include Adjusted EBITDA and Free Cash Flow (FCF). In order for our investors to be better able to compare our current results with those of previous periods, we have included a reconciliation of GAAP to non-GAAP financial measures in the tables at the end of this letter. The Adjusted EBITDA reconciliation excludes total other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, merger-related costs, and income tax (benefit) expense from the net income (loss) of the period, and the FCF reconciliation excludes capital expenditures and effects of exchange rates from the cash flow from operations of the period, in each case where applicable. We believe these non-GAAP financial measures are useful as a supplement in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance. However, these non-GAAP financial measures have limitations, and should not be considered in isolation or as a substitute for our GAAP financial information. Forward-Looking Statements This shareholder letter contains forward-looking statements within the meaning of the federal securities laws. Statements contained herein that are not historical facts are considered forward-looking statements and can be identified by terms such as anticipate, believe, continue, could, estimate, expect, goal, may, opportunity, plan, seek, should, will, would or similar expressions and the negatives of those terms. Such forward-looking statements are based on our current beliefs, assumptions and information available to us and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements. These statements include those related to the continued competitive advantage of the Roku Experience our expectations regarding the roll out of our Home Screen to international markets our ability to serve ad platform customers from the largest global brands to small and medium-size businesses our expansion of advertising categories in the Roku Experience growth of our scale our ability to build on political spending momentum in the 2026 election cycle our expectations regarding increased Premium Subscriptions the roll out of DVR features our ability to grow Devices revenue our expectations regarding the growth in Roku TV model unit volume and related distribution costs in the second half of 2026 our expectations relating to partnerships with TV OEMs the effects of pricing pressure from tightening memory supply on our Devices revenue our expectations regarding the pending transaction with Fox and our overall business trajectory. Important risks and factors related to such statements are contained in the reports we have filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and Current Reports on Form 8-K. Except as required by law, we assume no obligation to update these forward-looking statements as the result of new information, future events or otherwise. Roku Q2 2026 Shareholder Letter 7ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net revenue Platform Advertising $ 672,816 $ 539,053 $ 1,285,521 $ 1,021,876 Subscriptions 548,153 436,418 1,066,678 834,412 Total Platform 1,220,969 975,471 2,352,199 1,856,288 Devices 133,721 135,567 251,370 275,422 Total net revenue 1,354,690 1,111,038 2,603,569 2,131,710 Cost of revenue Platform(1) Advertising 252,778 237,405 494,514 449,829 Subscriptions 321,439 240,390 626,848 444,472 Total Platform 574,217 477,795 1,121,362 894,301 Devices(1) 106,777 135,585 243,575 294,706 Total cost of revenue 680,994 613,380 1,364,937 1,189,007 Gross profit (loss) Platform Advertising 420,038 301,648 791,007 572,047 Subscriptions 226,714 196,028 439,830 389,940 Total Platform 646,752 497,676 1,230,837 961,987 Devices 26,944 (18) 7,795 (19,284) Total gross profit 673,696 497,658 1,238,632 942,703 Operating expenses Research and development (1) 179,680 178,017 369,172 362,596 Sales and marketing (1) 223,223 243,256 444,444 466,949 General and administrative (1) 124,618 99,718 227,069 194,221 Total operating expenses 527,521 520,991 1,040,685 1,023,766 Income (loss) from operations 146,175 (23,333) 197,947 (81,063) Other income, net Interest expense (475) (460) (1,099) (893) Other income, net 23,691 28,466 61,188 46,115 Total other income, net 23,216 28,006 60,089 45,222 Income (loss) before income taxes 169,391 4,673 258,036 (35,841) Income tax expense (benefit) 5,175 (5,830) 8,120 (18,913) Net income (loss) $ 164,216 $ 10,503 $ 249,916 $ (16,928) Net income (loss) per share basic $ 1.11 $ 0.07 $ 1.69 $ (0.12) Net income (loss) per share diluted $ 1.08 $ 0.07 $ 1.65 $ (0.12) Weighted-average common shares outstanding basic 147,972 146,888 147,742 146,545 Weighted-average common shares outstanding diluted 151,895 149,675 151,461 146,545 Roku Q2 2026 Shareholder Letter 8ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS, CONTINUED (in thousands, except per share data) (unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 (1) Stock-based compensation was allocated as follows Cost of revenue, platform $ 208 $ 341 $ 402 $ 725 Cost of revenue, devices 38 108 Research and development 27,005 32,961 56,500 68,819 Sales and marketing 27,347 30,486 54,731 65,272 General and administrative 20,761 20,814 42,370 45,210 Total stock-based compensation $ 75,321 $ 84,640 $ 154,003 $ 180,134 Roku Q2 2026 Shareholder Letter 9ROKU, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value data) (unaudited) As of June 30, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 2,001,815 $ 1,587,068 Short-term investments 555,387 730,213 Accounts receivable, net of allowances of $51,129 and $80,448 as of June 30, 2026, and December 31, 2025, respectively 776,603 879,871 Inventories 116,424 114,642 Prepaid expenses and other current assets 156,120 89,716 Total current assets 3,606,349 3,401,510 Property and equipment, net 155,052 173,577 Operating lease right-of-use assets 237,518 260,341 Content assets, net 151,620 167,908 Intangible assets, net 42,472 50,207 Goodwill 309,406 309,406 Other non-current assets 70,129 70,534 Total Assets $ 4,572,546 $ 4,433,483 Liabilities and Stockholders Equity Current liabilities Accounts payable $ 167,197 $ 158,640 Accrued liabilities 967,334 957,983 Deferred revenue, current portion 123,704 120,912 Total current liabilities 1,258,235 1,237,535 Deferred revenue, non-current portion 25,400 28,848 Operating lease liability, non-current portion 386,410 435,899 Other long-term liabilities 79,049 73,256 Total Liabilities 1,749,094 1,775,538 Stockholders Equity Common stock, $0.0001 par value 15 15 Additional paid-in capital 4,225,241 4,145,485 Accumulated other comprehensive income (loss) (424) 1,039 Accumulated deficit (1,401,380) (1,488,594) Total stockholders equity 2,823,452 2,657,945 Total Liabilities and Stockholders Equity $ 4,572,546 $ 4,433,483 Roku Q2 2026 Shareholder Letter 10ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)(unaudited) Six Months Ended June 30, 2026 June 30, 2025 Cash flows from operating activities Net income (loss) $ 249,916 $ (16,928) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization 32,033 32,073 Stock-based compensation expense 154,003 180,134 Amortization of right-of-use assets 24,674 23,836 Amortization and write-off of content assets 100,536 101,003 Foreign currency remeasurement (gains) losses 1,017 (112) Change in fair value of strategic investment in convertible promissory notes 3,100 Impairment of assets 4,920 2,870 Provision for credit losses 2,530 1,414 Other items, net (11,927) 849 Changes in operating assets and liabilities Accounts receivable 100,221 189,024 Inventories (1,782) 45,576 Prepaid expenses and other current assets (60,238) (21,115) Content assets and liabilities, net (97,701) (91,361) Other non-current assets (7,028) 5,864 Accounts payable 9,335 (114,583) Accrued liabilities 35,511 (48,955) Operating lease liabilities (55,361) (38,523) Other long-term liabilities 3,781 (6,797) Deferred revenue (656) 1,096 Net cash provided by operating activities 483,784 248,465 Cash flows from investing activities Purchases of property and equipment (6,904) (3,053) Purchase of business, net of cash acquired (95,090) Sale (Purchase) of strategic investment 18,399 (7,000) Purchases of short-term investments (425,000) Sales and maturities of short-term investments 600,000 Repayments of convertible promissory notes 10,000 Net cash provided by (used in) investing activities 186,495 (95,143) Cash flows from financing activities Proceeds from equity issued under incentive plans 36,586 2,946 Taxes paid related to net share settlement of equity awards (110,833) (71,508) Repurchases of common stock (162,702) Payment of contingent consideration (15,210) Other (236) Net cash used in financing activities (252,395) (68,562) Net increase in cash and cash equivalents 417,884 84,760 Effect of exchange rate changes on cash and cash equivalents (3,137) 7,877 Cash and cash equivalents beginning of period 1,587,068 2,160,639 Cash and cash equivalents end of period $ 2,001,815 $ 2,253,276 Roku Q2 2026 Shareholder Letter 11ROKU, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED (in thousands)(unaudited) Six Months Ended June 30, 2026 June 30, 2025 Supplemental disclosures of cash flow information Cash paid for interest $ 869 $ 347 Cash paid for (refunded from) income taxes, net $ (2,426) $ 10,123 Supplemental disclosures of non-cash investing and financing activities Non-cash contingent consideration for business combination $ $ 65,815 Unpaid portion of property and equipment purchases $ 204 $ 368 Roku Q2 2026 Shareholder Letter 12NON-GAAP INFORMATION (in thousands) (unaudited) Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net income (loss) $ 164,216 $ 10,503 $ 249,916 $ (16,928) Total other income, net (23,216) (28,006) (60,089) (45,222) Stock-based compensation 75,321 84,640 154,003 180,134 Depreciation and amortization 14,105 16,881 32,033 32,073 Restructuring charges 3,064 Merger-related costs 18,719 18,719 Income tax expense (benefit) 5,175 (5,830) 8,120 (18,913) Adjusted EBITDA $ 254,320 $ 78,188 $ 402,702 $ 134,208 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (TTM) Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Net cash provided by operating activities $ 396,421 $ 455,360 $ 483,718 $ 544,126 $ 719,037 Less Purchases of property and equipment (6,567) (6,647) (5,280) (6,483) (9,131) Add (Less) Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,133 (5,706) 5,179 1,126 (5,835) Free cash flow (TTM) $ 391,987 $ 443,007 $ 483,617 $ 538,769 $ 704,071 Roku Q2 2026 Shareholder Letter 13