Wedbush Issues Pessimistic Outlook for Roku Earnings

Roku, Inc. (NASDAQ:ROKU) – Equities researchers at Wedbush reduced their Q3 2025 earnings per share estimates for Roku in a research note issued on Friday, May 2nd. Wedbush analyst A. Reese now forecasts that the company will post earnings of $0.06 per share for the quarter, down from their prior forecast of $0.09. Wedbush currently has a “Outperform” rating and a $100.00 target price on the stock. The consensus estimate for Roku’s current full-year earnings is ($0.30) per share. Wedbush also issued estimates for Roku’s Q3 2026 earnings at $0.49 EPS, FY2026 earnings at $0.85 EPS and FY2027 earnings at $1.84 EPS.

Several other analysts have also recently commented on the stock. Guggenheim restated a “buy” rating and set a $100.00 price target on shares of Roku in a report on Friday. Citizens Jmp upgraded shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. FBN Securities started coverage on Roku in a report on Friday, March 28th. They set an “outperform” rating and a $93.00 price objective for the company. Redburn Atlantic raised Roku from a “neutral” rating to a “buy” rating and set a $100.00 target price on the stock in a research report on Monday, April 7th. Finally, Benchmark reiterated a “buy” rating and set a $130.00 price target on shares of Roku in a report on Friday. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $89.46.

Roku Stock Down 1.8 %

Shares of Roku stock opened at $60.42 on Monday. Roku has a 12 month low of $48.33 and a 12 month high of $104.96. The stock has a market cap of $8.82 billion, a PE ratio of -67.89 and a beta of 2.06. The business has a fifty day simple moving average of $68.16 and a 200-day simple moving average of $75.01.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping the consensus estimate of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same period last year, the firm posted ($0.35) earnings per share. The firm’s quarterly revenue was up 15.8% compared to the same quarter last year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the transaction, the chief financial officer now directly owns 68,843 shares in the company, valued at $5,163,225. This represents a 1.43 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Charles Collier sold 7,181 shares of the firm’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $78.25, for a total transaction of $561,913.25. Following the completion of the sale, the insider now owns 7,380 shares in the company, valued at $577,485. This represents a 49.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 72,111 shares of company stock worth $6,575,362. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently made changes to their positions in the stock. Geneos Wealth Management Inc. raised its holdings in Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after acquiring an additional 270 shares in the last quarter. Garde Capital Inc. acquired a new position in shares of Roku in the first quarter valued at $25,000. Vision Financial Markets LLC bought a new position in Roku in the fourth quarter worth $30,000. Golden State Wealth Management LLC boosted its stake in Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock worth $31,000 after buying an additional 247 shares in the last quarter. Finally, Game Plan Financial Advisors LLC bought a new stake in Roku in the 4th quarter valued at $37,000. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.