Ad revenue and subscriptions both jumped in the latest quarter. Roku credits higher-margin ad products and stronger inventory monetization. The company’s total revenue and gross profit also saw double-digit growth.
Media and publishing professionals tracking digital ad trends saw Roku post a 25% year-over-year increase in advertising revenue for the second quarter, reaching $672.8 million. Subscriptions also rose 26% to $548.2 million, as the company leaned into higher-margin ad products and improved monetization of its inventory. These gains contributed to a 22% rise in total revenue, which hit $1.35 billion, and a 35% jump in gross profit to $674 million.
Roku attributed its advertising growth to new offerings such as the Roku Home Screen page, which it described as a highly valuable asset for TV advertisers. The company reported that video advertising on its platform outperformed other U.S. digital and connected TV markets, citing data from Guideline’s Standard Media Index. However, Madison & Wall noted that SMI data primarily reflects agency-directed spending and may not capture the full scope of the market, as more ad budgets now flow through direct channels outside traditional agency systems.
Active user engagement also increased, with streaming hours up 7% to 37.9 billion during the quarter. Roku said it benefited from stronger inventory monetization and highlighted growth in political advertising, which outpaced the comparable period for the 2024 U.S. Presidential election cycle. The company’s performance comes shortly after Fox Corp. announced plans in June to acquire Roku for $22 billion in cash and stock.
If the Fox/Roku merger proceeds, Nielsen data suggests the combined platforms would have accounted for a 10.2% share of monthly U.S. TV viewership in June, ranking third behind YouTube and Walt Disney. The merged entity is projected to generate $9 billion in annual advertising revenue, with $6.5 billion attributed to Fox and $2.5 billion to Roku. Roku’s stock closed 2% higher at $150.07 following the earnings report. For additional perspective on digital ad market shifts, see this analysis of how ad supply declines are reshaping publisher strategies.
Founded in 2002, Roku has grown into a leading streaming platform in the U.S., with tens of millions of active accounts and a significant presence in the connected TV advertising market. The company’s device and platform businesses have helped it secure a strong position among digital media distributors, and its recent financial results underscore its ability to drive both audience growth and monetization in a competitive landscape.
