Roku Posts 24% Revenue Growth as Fox's $22 Billion Takeover Nears

Roku grew total gross profit 24% year over year to $649 million in the third quarter of 2026, beating Wall Street estimates while it waits on a $22 billion acquisition by Fox Corporation that is expected to close in the first half of 2027.

The streaming TV specialist built on what it called "an outstanding first half of the year". Platform revenue rose 23% YoY to $1.3 billion (€1.1bn), with Advertising and Subscriptions each growing 23%. The company booked net income of $183 million, Adjusted EBITDA of $249 million and trailing-twelve-month Free Cash Flow of $796 million.

It is a tidy set of numbers for a business soon to change owners. Whether Fox's money accelerates or merely absorbs that momentum is a question for 2027.

Where the money came from

Subscriptions revenue reached $581 million, up 23% YoY, at a gross margin of 40.9% — down roughly 180 basis points YoY. The largest factor, the company said, is a deliberate mix shift toward Premium Subscriptions.

"We earn revenue when our partners grow and retain subscribers on our platform, so our incentives are aligned with theirs," Founder and CEO Anthony Wood and CFO and COO Dan Jedda told shareholders in a letter. "We give them tools to attract and engage subscribers and handle sign-up and billing, whether they are a large global streamer or a specialty service."

Devices told a different story. Revenue there climbed 33% YoY to $194 million, but gross margin was negative 25.1%, driven primarily by elevated memory costs. Roku sells hardware to buy shelf space, in other words, and memory prices have made that shelf more expensive.

How big is the TV business really?

The Devices line covers Roku's own players and Roku-made TVs. It excludes Roku TV models built and sold by OEM licensing partners, which account for the largest portion of the company's overall unit volume.

Roku-made TVs exceeded expectations in Q3 and approached 8% of total TV unit sales volume in the US — a position, the shareholder letter noted, built in roughly three years. That is the pace of a challenger, not an incumbent, and it gives Fox a hardware beachhead alongside the platform business.

What does the Fox deal change?

Wood and Jedda framed the quarter as proof the model works across every partner type: a streaming service gaining subscribers through Premium Subscriptions, a content company monetising its library on The Roku Channel, an advertiser buying through a third-party DSP, or a TV brand licensing the Roku TV OS.

"The alignment of our interests with those of our partners is a foundation of our business and a core reason why more than 100 million households worldwide choose Roku," they wrote. Management also confirmed it remains on track for the second-half 2026 forecast laid out in the proxy statement.

The executives cast the Fox transaction in ambitious terms, calling it "an extraordinary opportunity to accelerate our vision, allowing us to scale faster and innovate more aggressively for viewers, partners, and advertisers." That is the language of a company talking up its buyer. The commercial facts underneath are simpler: a $22 billion price, a 2027 close, and a platform that now reaches more than 100 million households.

For now, Roku reports as an independent company with growing subscriptions, a loss-making hardware arm approaching one in twelve US TV sales, and a closing date on the calendar. The next test comes when Fox's forecast replaces Roku's own.