
Roku (ROKU) Stock Forecast & Price Target
Roku (ROKU) Analyst Ratings
Bulls say
Roku demonstrated significant financial growth, with EBITDA increasing by 62% to approximately $421 million and free cash flow surpassing 100% to around $484 million for the fiscal year 2025. The company has set an optimistic outlook for fiscal year 2026, anticipating platform revenue to grow by 18% year-over-year, reaching $4.9 billion, alongside an adjusted EBITDA forecast of $635 million, reflecting an 11.5% margin. Roku's strong performance is further underscored by their recent initiatives, including a $100 million share buyback and a capital expenditure of only $1.1 million in 4Q25, positioning the company well for sustained growth in the competitive streaming market.
Bears say
The negative outlook for Roku's stock is driven by assumptions of slowed growth, projecting an increase of only 7% with EBITDA margins peaking at approximately 12%. Competition from larger streaming services and manufacturers, like Amazon and Google, poses a risk to Roku's market share and profitability, particularly if relationships between Roku and these services deteriorate. Furthermore, declining average gross margins due to Roku's entry into TV manufacturing and potential weaknesses in advertising revenue highlight the challenges the company faces in maintaining its competitive edge within the evolving streaming landscape.
This aggregate rating is based on analysts' research of Roku and is not a guaranteed prediction by Public.com or investment advice.
Roku (ROKU) Analyst Forecast & Price Prediction
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