Roku Q3 preview: Revenue growth seen strong, but tariff headwinds persist

[Roku sign and logo on the modern facade of consumer electronics and broadcast media company headquarters in Silicon Valley]
Michael Vi

Roku (ROKU [https://seekingalpha.com/symbol/ROKU]) is expected to report a 14% jump in its third-quarter revenue scheduled for October 30, after the closing bell.

The consensus EPS estimate is $0.09 [https://seekingalpha.com/symbol/ROKU/earnings/estimates], while the revenue estimate is $1.21 billion. Over the last 3 months, Roku’s EPS estimates have seen 3 upward revisions [https://seekingalpha.com/symbol/ROKU/earnings/revisions] and 3 downward moves, while revenue estimates have seen 25 upward revisions and none downward.

Last quarter, the company had guided platform revenue growth of 16% Y/Y with a gross margin of about 51%. Devices revenue was seen declining about 3% Y/Y with a gross margin in the negative mid-teens, reminding investors that tariffs are expected to weigh on device profitability this year.

These trends, it said, were expected to result in total gross profit of around $520 million and adjusted EBITDA of roughly $110 million for Q3.

Meanwhile, Piper Sandler has projected an EBITDA of $110 million compared to Wall Street’s estimate of $111.6 million.

The brokerage said in a recent report that while the outlook appears improved, investors now anticipate stronger growth for the company in 2026, and execution so far has been uneven.

Seeking Alpha analyst Julia Ostian [https://seekingalpha.com/article/4833618-roku-vs-the-trade-desk-heres-which-one-i-am-buying-and-why] highlighted that Roku’s hardware weighs on margins and overall profitability, and the devices segment is frequently affected by macro factors such as tariffs.

“Roku is trickier for me because the momentum is better, the investor enthusiasm is there, but I still think it’s the riskier of the two because of the margin structure and the hardware drag, and I’m not signing up to hold this for ten or fifteen years on today’s information,” Ostian said comparing it to The trade Desk (TTD [https://seekingalpha.com/symbol/TTD]).

The stock has advanced 31.52% year-to-date, while in the past year it has gone up by nearly 28%.

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