Pivotal Research Lifts Roku Price Target to $140 After $1.39B Q4
Pivotal Research lifted Roku’s price target to $140 from $135 and maintained its Buy rating after the company reported Q4 revenue of $1.39 billion, 15% net revenue growth and a 255-bps adjusted EBITDA margin expansion. The firm highlighted Switzerland-like streaming positioning and Roku’s share buyback of $150 million under a $400 million authorization.
1. Broker Price Target Increases
Pivotal Research raised its price target on Roku to $140 from $135 and maintained a Buy rating, while Oppenheimer and UBS lifted their targets to $120 and $110 respectively, citing stronger-than-expected results and optimistic fiscal 2026 Platform revenue guidance.
2. Q4 Earnings Beat
Roku reported Q4 revenue of $1.39 billion versus $1.35 billion expected, net revenue up 15% to $4.737 billion for fiscal 2025, platform revenue up 18% to $4.145 billion, gross profit rose 15% to $2.074 billion and streaming hours climbed 15% to 145.6 billion.
3. Margin Expansion and Cash Flow
The company expanded adjusted EBITDA margin by 255 basis points, delivered positive net income, generated record trailing twelve-month free cash flow and repurchased $150 million of shares under its $400 million buyback program.
4. Outlook and Strategic Positioning
Roku expects sustained double-digit Platform revenue growth in 2026, highlighted its ‘Switzerland-like positioning’ in the streaming ecosystem and projected third-party partnerships ramping through fiscal 2026 with potential Amazon-driven tailwind in fiscal 2027.