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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsNetflix and Roku both benefit from the shift to streaming, but they make money in different ways. Netflix primarily earns monthly membership fees for entertainment; Roku operates a TV platform whose revenue comes mainly from advertising and streaming-service distribution, alongside a separate devices business. That distinction shapes how each company grows, generates cash and faces risk—and operating growth alone cannot show which stock is a better value without comparable, current valuation data.
How Netflix and Roku make money
Netflix: a subscription-led entertainment business
Netflix identifies monthly membership fees as its primary source of revenue. It also has an advertising tier and earns revenue from other activities, including consumer products and live experiences, but its 2025 Form 10-K says revenue beyond membership fees was not a material component of total revenue in 2023–2025.
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Netflix reported $45.183 billion in revenue for 2025, up 16% from $39.001 billion in 2024. The company attributed the increase primarily to membership growth, price increases and increased advertising revenue, partly offset by foreign-exchange effects. That growth rate therefore reflects several drivers; it should not be read as a measure of subscriber growth alone.
Roku: a platform business plus devices
Roku reports two segments. Its Platform segment earns revenue from digital advertising and streaming-service distribution, including subscription and transaction revenue shares, Premium Subscriptions and branded remote-control app buttons. Its Devices segment sells streaming players, Roku-made TVs, smart-home and audio products, and accessories.
#1 Best Overall
- HD streaming made simple: With America’s number 1 TV streaming platform,* exploring popular apps—plus tons of free movies, shows, and live TV—is as easy as it is fun. *Based on hours streamed—Hypothesis Group
- Compact without compromises: The sleek design of Roku Streaming Stick won’t block neighboring HDMI ports, and it even powers from your TV alone, plugging into the back and staying out of sight. No wall outlet, no extra cords, no clutter.
- No more juggling remotes: Power up your TV, adjust the volume, and control your Roku device with one remote. Use your voice to quickly search, play entertainment, and more.
- Shows on the go: Take your TV to-go when traveling—without needing to log into someone else’s device.
- TV, simplified: With setup that only takes minutes, a simple-to-navigate Home Screen, and an uncluttered remote control that does all you need—Roku makes it easier to watch the TV you love.
Roku reported $4.145 billion in Platform revenue and about $4.737 billion in total revenue for 2025. Platform revenue grew 18% that year. Roku has described pricing devices to expand Streaming Households even when device economics are weak, with the aim of generating platform revenue and gross profit over time. That strategy makes the devices business part of its platform-growth approach, not a direct equivalent of Netflix’s paid entertainment service.
What the reported growth figures do—and do not—show
The figures below describe different revenue engines and, for Roku’s quarterly data, a later period than the annual figures. They are useful context, not a like-for-like measure of investment performance.
Rank #2
- Ultra-speedy streaming: Roku Ultra is 30% faster than any other Roku player, delivering a lightning-fast interface and apps that launch in a snap.
- Cinematic streaming: This TV streaming device brings the movie theater to your living room with spectacular 4K, HDR10+, and Dolby Vision picture alongside immersive Dolby Atmos audio.
- The ultimate Roku remote: The rechargeable Roku Voice Remote Pro offers backlit buttons, hands-free voice controls, and a lost remote finder.
- No more fumbling in the dark: See what you’re pressing with backlit buttons.
- Say goodbye to batteries: Keep your remote powered for months on a single charge.
| Company and period | Reported result | How to interpret it |
|---|---|---|
| Netflix, 2025 | $45.183 billion total revenue; up 16% year over year. | Netflix’s 2025 Form 10-K says growth was driven primarily by membership growth, price increases and increased advertising revenue, partly offset by foreign exchange. |
| Roku, 2025 | $4.737 billion total revenue, including $4.145 billion Platform revenue; Platform revenue up 18% year over year. | Roku’s 2025 Form 10-K reports these annual results. Platform growth and total-company growth are different measures because Roku also reports Devices revenue. |
| Roku, Q1 2026 | $1.249 billion total revenue, up 22% year over year; $1.131 billion Platform revenue, up 28%; $118 million Devices revenue, down 16%. | Roku’s April 30, 2026 shareholder letter reports the quarter. It is a historical quarter, not a claim about the latest results as of October 2026. |
Roku’s Q1 2026 platform mix
In its April 30, 2026 shareholder letter, Roku reported $613 million in advertising revenue and $519 million in subscription revenue for Q1 2026. It also reported $86 million in net income and $148 million in adjusted EBITDA. Adjusted EBITDA is a company-defined non-GAAP measure; it is not a substitute for net income or a standardized basis for comparing companies.
The Tool Desk
Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Roku said it passed 100 million Streaming Households in April 2026. It recorded 145.6 billion streaming hours in 2025, up 15% from 2024. Roku cautions that hours can include playback when no one is actively watching and do not correlate period by period with revenue or average revenue per user. Treat hours as an engagement indicator, not a direct forecast of sales.
Rank #3
- 4K streaming made simple:With America’s number 1 TV streaming platform,* exploring popular apps—plus tons of free movies, shows, and live TV—is as easy as it is fun. *Based on hours streamed—Hypothesis Group
- 4K picture quality: With Roku Streaming Stick Plus, watch your favorites with brilliant 4K picture and vivid HDR color.
- Compact without compromises: Our sleek design won’t block neighboring HDMI ports, and it even powers from your TV alone, plugging into the back and staying out of sight. No wall outlet, no extra cords, no clutter.
- No more juggling remotes: Power up your TV, adjust the volume, and control your Roku device with one remote. Use your voice to quickly search, play entertainment, and more.
- Shows on the go: Take your TV to-go when traveling—without needing to log into someone else’s device.
Profitability and cash generation need careful comparison
Revenue growth does not establish which company converts sales into profit or cash more effectively. For an investor comparison, start with reported GAAP operating income, net income, cash from operations, investing cash flows and balance-sheet liquidity for the same reporting periods. The figures available here do not establish a matched set of those measures for both companies, so they do not support a conclusion that one is more profitable overall.
Both companies discuss free cash flow, but company-defined non-GAAP measures should not be treated as interchangeable. Roku reported $483.6 million in trailing-twelve-month free cash flow at December 31, 2025, and labels the measure non-GAAP, warning that it should not replace GAAP financial information. Netflix defines free cash flow as cash provided by or used in operating and investing activities and likewise cautions that it is non-GAAP. Content-payment timing can cause Netflix’s cash flow to differ from net income. A meaningful comparison requires reconciling each company’s definition and using the same period.
Rank #4
- Stunning 4K and Dolby Vision streaming made simple: With America’s number 1 TV streaming platform,* exploring popular apps—plus tons of free movies, shows, and live TV—is as easy as it is fun. *Based on hours streamed—Hypothesis Group
- Breathtaking picture quality: Stunningly sharp 4K picture brings out rich detail in your entertainment with four times the resolution of HD. Watch as colors pop off your screen and enjoy lifelike clarity with Dolby Vision and HDR10+.
- Seamless streaming for any room: With Roku Streaming Stick 4K, watch your favorite entertainment on any TV in the house, even in rooms farther from your router thanks to the long-range Wi-Fi receiver.
- Shows on the go: Take your TV to-go when traveling—without needing to log into someone else’s device.
- Compact without compromises: Our sleek design won’t block neighboring HDMI ports, so you can switch from streaming to gaming with ease. Plus, it’s designed to stay hidden behind your TV, keeping wires neatly out of sight
The main risks are different
Netflix: retaining members and delivering content people want
Netflix competes with established and new providers for members and entertainment viewing. Its results are exposed to whether it can attract, retain and engage members, and whether its programming meets audience expectations. The company invests substantially in acquired, licensed and original programming; production, talent, completion and content-performance risks can affect results, as can the costs of programming that performs poorly. Foreign-exchange movements are another risk.
Roku: advertising, partners and monetization
Roku identifies streaming-TV competition, advertising monetization and macroeconomic conditions as risks. Its platform also depends on relationships with streaming-service partners. Roku’s 2025 Form 10-K says the top three streaming services on its platform, excluding The Roku Channel, represented nearly half of platform hours in 2025. That concentration makes partner relationships material to its platform business.
Best Value
- Streaming made easy: Roku Express lets you stream free, live and premium TV over the Internet—right to your TV. It’s perfect for new users, secondary TVs and easy gifting—but powerful enough for seasoned pros
- Quick and easy setup: Just plug it into your TV with the included High Speed HDMI Cable and connect to the internet to get started
- Tons of power, tons of fun: Compact and power-packed, you’ll stream your favorites with ease; from movies and series on Apple TV, Prime Video, Netflix, The Roku Channel, HBO, Showtime and Google Play to cable alternatives like Hulu with Live TV and PlayStation Vue, enjoy the most talked about TV across free and paid channels
- Low cost, no extra fees: For under $30, Roku Express streaming device includes a High Speed HDMI Cable—and there’s no monthly equipment fee; with access to free TV on hundreds of channels, there’s plenty to stream without spending extra
- Simple remote: Incredibly easy to use, this remote features shortcut buttons to popular streaming channels
Roku’s device-pricing strategy presents a trade-off: weaker device economics may help bring households onto its platform, but the longer-term value depends on monetizing those households through platform activity. Advertising demand, platform competition and execution can all influence whether that strategy produces the intended results.
How to assess which stock fits an investment thesis
The companies are not interchangeable bets on streaming. A view on Netflix centers more directly on paid entertainment memberships, pricing, content spending and audience retention. A view on Roku centers on platform monetization, advertising demand, distribution relationships and converting household reach into revenue, while accounting for the separate device business.
- Separate growth drivers: For Netflix, distinguish membership, pricing, advertising and foreign-exchange effects. For Roku, separate Platform performance from Devices results and examine the sources of platform revenue.
- Compare like periods and measures: Use filings for the same fiscal periods where possible. Do not compare a full-year figure for one company with a single quarter for the other as though they were equivalent.
- Look beyond revenue: Review GAAP profitability, cash-flow statements and liquidity, then read the companies’ definitions before comparing non-GAAP measures such as adjusted EBITDA or free cash flow.
- Check valuation separately: A company can have stronger operating growth yet be a less attractive stock at a particular price. A valuation comparison needs share price, market capitalization or enterprise value, and consistently calculated trailing or forward multiples dated to the same day.
Roku’s April 30, 2026 shareholder letter described a management goal of a path toward $1 billion in free cash flow by 2028 and gave Q2 and full-year 2026 outlook at that time. Those are forward-looking expectations, not achieved results. In the same letter, CEO Anthony Wood and CFO and COO Dan Jedda wrote: “These results affirm our path to sustaining double-digit Platform revenue growth, expanding margins, and growing our north star metric of Free Cash Flow per share.” That is management’s forward-looking view, not a guarantee of performance.
Can the available figures identify the better-value stock?
No. The reported operating figures help explain how the businesses differ, but they do not establish which stock is cheaper or more attractive at current prices. A fair value comparison requires contemporaneous price-based multiples for both companies, calculated on the same basis and valuation date. Without that information, a buy, sell or “better value” verdict would go beyond what the operating data show. Historical results and management outlook also do not predict future stock returns.
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