Roku, Inc. Supplemental Financial Information for the Years Ended December 31, 2024 and 2025 (Form 8-K)

Roku, Inc.

Supplemental Financial Information for the Years Ended December 31, 2024 and 2025

Summary Financials ($ in millions)			FY 2024						Q1 25						Q2 25						Q3 25						Q4 25						FY 2025
Advertising			$2,065.3						$482.8						$539.1						$591.2						$714.7						$2,327.8
Subscriptions			1,457.5						398.0						436.4						473.4						509.3						1,817.1
Platform revenue			3,522.8						880.8						975.5						1,064.6						1,224.0						4,144.9
Devices revenue			590.1						139.9						135.6						146.0						170.9						592.4
Total net revenue			4,112.9						1,020.7						1,111.0						1,210.6						1,394.9						4,737.3
Advertising			1,196.6						270.4						301.6						345.5						428.2						1,345.8
Subscriptions			689.4						193.9						196.0						202.3						218.4						810.7
Platform gross profit			1,886.0						464.3						497.7						547.8						646.7						2,156.4
Devices gross profit (loss)			(80.3)						(19.3)						0.0						(22.9)						(39.9)						(82.0)
Total gross profit			1,805.6						445.0						497.7						524.9						606.8						2,074.4
Advertising gross margin %			57.9		%				56.0		%				56.0		%				58.4		%				59.9		%				57.8		%
Subscriptions gross margin %			47.3		%				48.7		%				44.9		%				42.7		%				42.9		%				44.6		%
Platform gross margin %			53.5		%				52.7		%				51.0		%				51.5		%				52.8		%				52.0		%
Devices gross margin %			(13.6		%)				(13.8)		%				0.0		%				(15.7)		%				(23.3)		%				(13.8)		%
Total gross margin %			43.9		%				43.6		%				44.8		%				43.4		%				43.5		%				43.8		%
Research and development			720.1						184.6						178.0						182.2						184.6						729.5
Sales and marketing			932.7						223.7						243.3						242.1						255.3						964.4
General and administrative			371.0						94.5						99.7						91.1						100.9						386.2
Total operating expenses			2,023.8						502.8						521.0						515.4						540.8						2,080.0
Income (loss) from operations			(218.2)						(57.7)						(23.3)						9.5						66.0						(5.6)
Net income (loss)			(129.4)						(27.4)						10.5						24.8						80.5						88.4
*Adjusted EBITDA			260.2						56.0						78.2						116.9						169.4						420.5
Adjusted EBITDA margin %			6.3		%				5.5		%				7.0		%				9.7		%				12.1		%				8.9		%
Cash flow from operations (TTM)			218.0						310.1						396.4						455.4						483.7						483.7
*Free cash flow (TTM) A			203.2						298.4						392.0						443.0						483.6						483.6

Reconciliation of Net Income (Loss) to Adjusted EBITDA:

			FY 2024						Q1 25						Q2 25						Q3 25						Q4 25						FY 2025
Net income (loss)			$(129,386)						$(27,431)						$10,503						$24,812						$80,477						$88,361
Total other income, net			(98,209)						(17,216)						(28,006)						(28,564)						(25,736)						(99,522)
Stock-based compensation			384,662						95,494						84,640						88,031						86,004						354,169
Depreciation and amortization			62,714						15,192						16,881						19,441						17,390						68,904
Restructuring charges (1)			30,999						3,064						-						-						-						3,064
Income tax expense			9,428						(13,083)						(5,830)						13,218						11,232						5,537
Adjusted EBITDA			$260,208						$56,020						$78,188						$116,938						$169,367						$420,513

(1) Restructuring charges of $3.1 million in fiscal year 2025 primarily include asset impairment charges of $2.9 million.

			FY 2024						Q1 25						Q2 25						Q3 25						Q4 25						FY 2025
Net cash provided by operating activities			$218,045						$310,094						$396,421						$455,360						$483,718						$483,718
Less: Purchases of property and equipment			(5,061)						(6,320)						(6,567)						(6,647)						(5,280)						(5,280)
Add/(Less): Effect of exchange rate changes on cash, cash equivalents and restricted cash			(9,746)						(5,328)						2,133						(5,706)						5,179						5,179
Free cash flow (TTM)			$203,238						$298,446						$391,987						$443,007						$483,617						$483,617

Use of Non-GAAP Measures

In addition to financial information prepared in accordance with generally accepted accounting principles in the United States (GAAP), this Exhibit 99.1 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 above. The Adjusted EBITDA reconciliation excludes total other income, net, stock-based compensation expense, depreciation and amortization, restructuring charges, 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.