Finance

Roku Stock Surges 28% in 2025: Can the Connected TV Pioneer Reclaim Its 2021 Highs?

Roku’s stock rose 28% in 2025 after returning to profitability, driven by strong revenue and user engagement.

October 17, 2025, 12:17 PM

The Roku company logo displayed on a smartphone screen against a background of fluctuating stock market prices. By Piotr Swat / Shutterstock.com.

Executive Summary

Roku returned to profitability in the second quarter of 2025, ending a three-year period of losses and supported by consistent double-digit revenue growth.

Roku’s platform achieved record user engagement, with users streaming 35.4 billion hours of content in Q2 2025, a 17% increase from the previous year.

Roku stock rallied 28% year-to-date in 2025, outperforming the broader market, but remains over 80% below its 2021 all-time high, suggesting potential for further recovery.

The Story So Far

Roku’s recent stock rally follows a challenging period of three years of losses, which saw its shares plummet over 80% from their 2021 peak. However, the company has now returned to profitability in Q2 2025, earlier than analysts expected, driven by consistent double-digit revenue growth and record user engagement as advertising continues to shift from traditional television to streaming platforms.

Why This Matters

Roku’s earlier-than-anticipated return to profitability, coupled with record user engagement and consistent double-digit revenue growth, signals a robust operational recovery and strengthens its position in the connected TV market. This turnaround, despite the stock remaining significantly below its 2021 peak, suggests potential for further investor confidence and stock appreciation, contingent on continued strong financial performance and favorable advertising market shifts.

Who Thinks What?

Rick Munarriz for The Motley Fool believes Roku’s stock rally is a result of its return to profitability, consistent double-digit revenue growth, and record platform consumption, indicating potential for further recovery.

Analysts, who had anticipated a later return to profitability, have seen Roku consistently exceed quarterly profit expectations and are now looking to the upcoming third-quarter results for indicators of a sustained recovery.

Investors have seen Roku’s stock rebound significantly in 2025, but acknowledge that shares remain substantially below their 2021 all-time high, suggesting potential for continued growth contingent on operational success and favorable market dynamics.

Roku (ROKU) stock has experienced a significant rally in 2025, with shares of the connected TV pioneer rising 28% year-to-date, outperforming the broader market. This uptick follows the company’s return to profitability in the second quarter of 2025, ending a three-year period of losses, and is supported by consistent double-digit revenue growth and record platform consumption, according to an analysis by Rick Munarriz for The Motley Fool on October 17, 2025.

Financial Performance and Market Position

The streaming services bellwether achieved profitability earlier than analysts had anticipated. Roku has maintained strong financial performance, reporting consistent double-digit percentage revenue growth and free cash flow in the hundreds of millions of dollars over the trailing 12 months.

Despite the recent gains, Roku’s stock remains over 80% below its all-time high recorded in 2021. The platform’s user engagement, however, has reached new peaks, with users streaming a record 35.4 billion hours of content in the second quarter, marking a 17% increase from the previous year.

Industry Trends and Outlook

The ongoing shift of advertising expenditure from traditional linear television to streaming continues to benefit companies like Roku, although economic fluctuations can introduce near-term volatility. The company also faces challenging year-over-year comparisons due to the cyclical advertising surge typically associated with presidential election years, as seen in 2024.

Roku has consistently exceeded analysts’ quarterly profit expectations, surpassing projections by at least 25% over the past year. Investors are now looking ahead to the company’s third-quarter results, scheduled for release on October 30, for further indicators of a sustained recovery.

Key Takeaways

Roku’s recent return to profitability and continued growth in platform engagement position it as a notable player in the connected TV market. While the stock has rebounded, its substantial decline from 2021 highs suggests potential for further recovery, contingent on continued operational success and favorable market dynamics.