(MENAFN- AsiaNet News)

• The company reported an operating income of $9.5 million in the third quarter, representing a 126% year-over-year (YoY) increase.
• Both Q3 revenue and EPS exceeded the analysts' consensus estimate.
• Roku has raised its 2025 forecast for platform revenue to $4.11 billion, up from the previous guidance of $4.075 billion.  

Roku Inc. (ROKU) stock reached a 3.5-year high on Friday after achieving positive operating income for the first time since 2021 and delivering stronger-than-expected third-quarter (Q3) results. 

The company reported an operating income of $9.5 million in Q3, representing a 126% year-over-year (YoY) increase.

Roku's stock pared some of the gains at the time of writing and traded over 9% higher. On Stocktwits, retail sentiment around the stock improved to 'extremely bullish' from 'bullish' territory the previous day. Message volume jumped to 'extremely high' from 'normal' levels in 24 hours. 

ROKU's Sentiment Meter and Message Volume as of 10:25 a.m. ET on Oct. 31, 2025 | Source: Stocktwits

The stock experienced a 685% surge in user message count as of Friday morning. A bullish Stocktwits user lauded the operating income result.

Q3 Highlights 

Total net revenue for the quarter reached $1.21 billion, marking a 14% YoY increase, and earnings per share (EPS) came in at $0.16. Both revenue and EPS exceeded the analysts' consensus estimate of $1.2 billion and $0.08, respectively, according to FiscalAI data. 

The company's platform revenue climbed 17% YoY, fueled by growing advertising demand and streaming distribution gains. Meanwhile, user engagement reached new highs, with total streaming hours increasing to 36.5 billion, a 4.5 billion-hour rise from the prior year. The Roku Channel remained the second most-used app on its platform in the U.S.

Outlook And Price Target Hikes 

Roku has raised its 2025 forecast for platform revenue to $4.11 billion, up from the previous guidance of $4.075 billion.  

Morgan Stanley and Wells Fargo have raised their price targets on Roku, citing improved platform revenue trends driven by growing streaming subscriptions and a strong connected TV (CTV) advertising market, according to TheFly. 

Morgan Stanley increased its price target to $85 from $80 but maintained an 'Underweight' rating, while Wells Fargo boosted its target to $116 from $113 and reiterated an 'Overweight' rating. 

Roku stock has gained over 47% in 2025 and over 71% in the last 12 months. 

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