TacticScaleWhat Roku Does & How It Makes Money (ROKU)
Updated October 2026 · reflects Roku's latest reported financials
TV streaming platform and maker of Roku streaming devices and TVs. Its Platform segment makes money mainly by selling digital advertising and related services on its streaming platform.
How Roku makes money
Its Platform segment makes money mainly by selling digital advertising and related services on its streaming platform. Its Devices segment earns revenue from selling streaming players, Roku-branded TVs, audio, smart home products and accessories.
What Roku does
Roku, Inc. operates a TV streaming platform in the United States and internationally, giving viewers one place to find and access TV shows, movies, news, sports and other content. The company reports two segments: Platform, which includes its streaming platform and digital advertising services, and Devices, which covers streaming players, Roku-branded TVs, smart home products and services, audio products and accessories. The devices bring viewers onto Roku's platform, and the platform earns money by selling advertising to reach those viewers. Roku was incorporated in 2002 and is headquartered in San Jose, California.
Products & services
- Roku streaming platform
- Roku streaming players
- Roku-branded TVs
- Roku digital advertising services
- Roku audio products
- Roku smart home products
What is Roku worth?
On an owner-earnings DCF, Roku's most-likely value is about $196 versus a recent price near $153 (28% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$45) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →