Is the business good?
How good a business is ROKU?
Roku, Inc. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
28%
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 2.1%
Operating margin · Entertainment median 12% · 12 months to Q1 2026
- Cash conversion
- 2.67×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +3.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −1.1% |
| FY2021 | 8.5% |
| FY2022 | −17% |
| FY2023 | −23% |
| FY2024 | −5.3% |
| FY2025 | −0.12% |
Details›
- Gross margin12 months to Q1 2026
- 44%
- Operating margin12 months to Q1 2026
- 2.1%
- Net margin12 months to Q1 2026
- 4.1%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $4.97B
- Free cash flow, trailing twelve months
- $538M
- Net income, trailing twelve months
- $201M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.