Roku to launch streaming bundles to boost profitability

Roku shared its fourth-quarter earnings for 2025 this week, delivering a strong quarter that marked a significant financial turnaround compared to the same period in the previous year. Total revenue for Q4 2025 reached $1.4 billion, representing a 16% year-over-year increase.

According to the company’s earnings report, the key financial highlights for the quarter include:

• Total revenue: $1.4 billion, representing a 16% year-over-year increase.
• Net income: $80.5 million, rebounding from a $35.5 million loss in the same period last year.

To sustain this momentum, Roku is rolling out new streaming bundles and plans to expand Howdy, its $3 ad-free subscription streaming service, beyond the Roku platform. Following the successful addition of HBO Max as a premium streaming service partner, Roku plans to continue this strategy by adding more partners. Launching these bundles could attract more viewers looking for deals amid rising subscription prices. While specific details of the expansion remain undisclosed, Roku CEO Anthony Wood spoke at CES last month, stating that the company wants to distribute the service widely.

User engagement on the platform remains strong. Roku users streamed 145.6 billion hours of video in 2025, which marks a 15% increase from 2024. Additionally, the company is nearing the milestone of 100 million streaming households, though it has decided to report this figure less frequently.

Looking ahead, Roku is projecting total net revenue of $5.5 billion and gross profit of $2.4 billion. Wood spoke to investors yesterday afternoon, noting that the company’s 2023 priority was to rightsize its cost structure and reach breakeven a year ahead of schedule for adjusted EBITDA—a profitability metric that excludes certain non-cash expenses. “Looking ahead to 2026 and beyond, we are confident in our ability to sustain double-digit platform revenue growth while continuing to grow profitability,” Wood said, referring to platform revenue as the revenue generated from services and advertising, distinct from hardware sales.

Why it matters

Roku’s shift toward bundling and expanding its own subscription services reflects a broader industry pivot to maximize platform revenue and sustain profitability amid rising competition. This strategy of adding premium streaming partners and expanding its own subscription services signals a clear transition toward sustained profitability.