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1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesNetflix and Roku both benefit from the shift to streaming, but they make money in different ways: Netflix primarily sells subscriptions to entertainment, while Roku operates a TV platform that earns advertising and distribution revenue and also sells devices. That distinction shapes their growth drivers, profit risks and the questions investors should ask before comparing the stocks. Operating growth alone does not show which share is the better value; that requires comparable, dated valuation data.
How Netflix and Roku make money
Netflix is primarily a subscription business
Netflix says monthly membership fees are its primary source of revenue. Its advertising tier and activities such as consumer products and live experiences add other revenue streams, but the company’s 2025 Form 10-K says revenue beyond membership fees was not a material component of total revenue in 2023–2025. Netflix therefore remains best understood as a subscription-led entertainment service, even as it expands its advertising business.
Netflix invests substantially in acquired, licensed and original programming. Its content is what attracts and retains members, but production and licensing costs, the performance of individual titles and the timing of content payments all affect results. Netflix defines free cash flow as cash provided by or used in operating and investing activities, and cautions that this non-GAAP measure should not replace GAAP financial information. Cash flow can differ from net income because content payments do not necessarily fall in the same period as the related expense.
Roku monetizes a platform as well as devices
Roku reports two segments: Platform and Devices. Platform revenue includes digital advertising, subscription and transaction revenue shares from streaming-service distribution, Premium Subscriptions, and branded buttons on remote controls. The Devices segment includes streaming players, Roku-made TVs, smart-home and audio products, and related accessories.
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- 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 has described its hardware pricing strategy as a way to expand the number of Streaming Households, even when device economics are weak, with the intended longer-term benefit coming from platform revenue and gross profit. That makes device sales strategically relevant without making Roku a hardware-only business: its platform is the larger revenue engine.
How their 2025 financial results compare
These figures cover the fiscal year ended December 31, 2025, as reported in the companies’ respective 2025 Form 10-K filings. Revenue growth rates are year over year.
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.
| Measure | Netflix | Roku |
|---|---|---|
| Business model | Primarily monthly membership fees; advertising and other activities were not material components of total revenue in 2023–2025. | Platform revenue from advertising and streaming-service distribution, plus a separate Devices segment. |
| 2025 total revenue | $45.183 billion | $4.737 billion |
| 2025 revenue growth | 16% | Not stated as a total-revenue growth rate in the cited 2025 Form 10-K information; Platform revenue grew 18%. |
| 2025 Platform revenue | Not applicable; Netflix does not report a Roku-style Platform segment. | $4.145 billion, up 18% year over year. |
Netflix attributed its 2025 revenue increase primarily to membership growth, price increases and increased advertising revenue, partly offset by foreign-exchange effects. Roku’s Platform growth should be read separately from total-company performance because Roku also reports device sales and the economics of its two segments differ.
What Roku’s Q1 2026 results add to the comparison
Roku’s April 30, 2026 shareholder letter reported the following for the quarter ended March 31, 2026. These are Roku results for that quarter, not a claim that Q1 2026 is the latest available quarter as of October 5, 2026.
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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.
| Roku Q1 2026 measure | Reported result |
|---|---|
| Total net revenue | $1.249 billion, up 22% year over year. |
| Platform revenue | $1.131 billion, up 28% year over year. |
| Advertising revenue | $613 million. |
| Subscription revenue | $519 million. |
| Devices revenue | $118 million, down 16% year over year. |
| Net income | $86 million. |
| Adjusted EBITDA | $148 million; a company-defined non-GAAP measure. |
The quarter shows why Roku’s segment mix matters: Platform revenue grew while Devices revenue declined. Net income is a GAAP measure; adjusted EBITDA is not, so the two should not be treated as interchangeable measures of profitability.
Roku said it passed 100 million Streaming Households in April 2026. Its 2025 Form 10-K also reported 145.6 billion streaming hours for 2025, 15% more than in 2024. Roku cautions that hours can include playback when viewers are not actively watching and do not correlate period by period with partner revenue or average revenue per user. Treat these figures as indicators of platform scale and engagement, not as direct revenue forecasts.
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
What to examine in growth, profits and cash generation
Growth has different sources
For Netflix, the relevant growth questions include whether it is adding or retaining members, raising prices, expanding advertising revenue and managing foreign-exchange effects. A single revenue-growth figure does not reveal how much came from each factor. For Roku, distinguish Platform from Devices: advertising and distribution are the core platform monetization sources, while hardware can be priced to attract households even if device economics are weak.
Use GAAP results before company-defined measures
Start with GAAP operating income, net income, balance-sheet liquidity and cash-flow statements when assessing either company. Roku reported $483.6 million of trailing-twelve-month free cash flow at December 31, 2025; Roku labels free cash flow a non-GAAP measure and warns that it should not replace GAAP financial information. Netflix also defines free cash flow as a non-GAAP measure, but the definitions are not established here as identical. Do not compare the companies’ free-cash-flow figures by label alone without checking the period and reconciling their methods.
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- 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 Q1 2026 letter also described a management goal of moving toward $1 billion in free cash flow by 2028. That is a forward-looking company objective, not an achieved result. In the same April 30, 2026 letter, CEO Anthony Wood and CFO and COO Dan Jedda said: “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.” This expresses management’s forward-looking view, not a guarantee of future performance.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which risks differ most between the stocks?
Netflix: content, members and currency
- Member retention and engagement: Netflix says competition for members and entertainment viewing is intense. Difficulty attracting, retaining or engaging members—or delivering content that meets expectations—could hurt results.
- Content performance and costs: Original programming brings production, talent and completion risks. Weak audience response or rising content costs can undermine the value of Netflix’s investment.
- Foreign exchange: Currency movements can affect reported results because Netflix operates internationally.
Roku: advertising, partners and platform monetization
- Advertising cycles and economic conditions: Advertising demand can be affected by macroeconomic conditions, making platform results sensitive to changes in ad spending.
- Competition and monetization: Roku identifies intense competition in streaming TV and faces the challenge of converting platform scale and engagement into revenue and profit.
- Content-partner relationships: Roku’s 2025 Form 10-K says its three largest streaming services on the platform, excluding The Roku Channel, represented nearly half of platform hours in 2025. Reliance on major services makes partner relationships material.
- Device economics: Pricing devices to grow the household base can trade near-term hardware profitability for a hoped-for longer-term platform benefit.
Does the operating comparison show which stock is better?
No. Revenue growth and business quality are only part of a stock comparison. Whether NFLX or ROKU is more attractive at a particular moment also depends on share price, market capitalization, enterprise value, valuation multiples, expectations already reflected in the price and an investor’s risk tolerance.
No comparable price-based valuation set for both companies as of October 5, 2026 is established here, so it would not be justified to call either stock cheaper, better value or a buy. For a valuation comparison, use figures from the same date and method, and compare trailing or forward multiples consistently. Then weigh those expectations against each company’s business model: Netflix’s subscription-led content economics or Roku’s advertising- and distribution-led platform with a separate device business.
Historical results do not predict future stock returns, and company guidance is subject to risks. This comparison is general information, not individualized investment advice.
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