Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear 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 from its global streaming service. Roku earns most of its revenue from its TV platform—especially advertising and distribution of streaming services—and also sells streaming players and Roku-made TVs. That difference shapes how to assess their growth, profitability and risks; it does not, by itself, identify the better stock.
The figures below cover Netflix and Roku’s fiscal 2025 filings and Roku’s Q1 2026 shareholder letter dated April 30, 2026. They show operating performance, not a current valuation comparison. A stock’s prospects also depend on the price investors pay and the expectations already reflected in that price.
How Netflix and Roku make money
| Investor question | Netflix (NFLX) | Roku (ROKU) |
|---|---|---|
| Main revenue engine | Monthly membership fees for streaming subscriptions. | Platform revenue, including digital advertising and revenue shares from streaming-service distribution, subscriptions and transactions. |
| Other reported business | Advertising, consumer products and live experiences, though revenue outside membership fees was not a material component in 2023–2025, according to Netflix’s 2025 Form 10-K. | A Devices segment that sells streaming players, Roku-made TVs, smart-home and audio products, and related accessories. |
| What the model depends on | Attracting and retaining members, setting prices, and delivering programming viewers want. | Expanding and monetizing Streaming Households, growing advertising and distribution revenue, and managing the economics of devices. |
Netflix’s 2025 Form 10-K says revenue growth that year was driven primarily by membership growth and price increases, with increased advertising revenue also contributing; foreign-exchange effects partly offset the increase. Netflix has an ad-supported tier, but its business remains subscription-led based on the revenue mix reported for 2023–2025.
Roku’s Platform segment bundles several sources of revenue. It includes advertising and payments or revenue shares connected with distributing streaming services, including subscription and transaction revenue shares. Roku also earns revenue from Premium Subscriptions and branded remote-control app buttons. The Devices segment is separate: Roku has described pricing devices to expand its household base even when device economics are weak, with the intended longer-term benefit of more platform revenue and gross profit.
Free tools Windows power users keep installed
One-click scans. No signup required.
#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.
What the reported growth figures show
| Measure | Netflix | Roku |
|---|---|---|
| Fiscal 2025 total revenue | $45.183 billion, up 16% from $39.001 billion in 2024, according to Netflix’s 2025 Form 10-K. | $4.737 billion, according to Roku’s 2025 Form 10-K. |
| Fiscal 2025 Platform revenue | Not applicable: Netflix does not report a Roku-style Platform segment (Netflix, 2025 Form 10-K). | $4.145 billion, up 18% year over year (Roku, 2025 Form 10-K). |
| Q1 2026 reported growth | Not stated in the sources cited here (Netflix, 2025 Form 10-K; no corresponding Q1 2026 Netflix result is included). | Total revenue was $1.249 billion, up 22% year over year; Platform revenue was $1.131 billion, up 28% (Roku, April 30, 2026 shareholder letter). |
| Q1 2026 Devices revenue | Not applicable: Netflix does not report a Devices segment (Netflix, 2025 Form 10-K). | $118 million, down 16% year over year (Roku, April 30, 2026 shareholder letter). |
The annual figures show Netflix’s much larger revenue base, while Roku’s Platform revenue grew faster than its total revenue in 2025. Those observations are not directly comparable measures of a stock’s expected return: the businesses have different revenue mixes, and the figures cover different operating segments.
Roku’s Q1 2026 results illustrate why its total growth rate needs context. Platform revenue rose 28% year over year while Devices revenue declined 16%; the company reported $613 million in advertising revenue and $519 million in subscription revenue for the quarter. Roku also reported $86 million in net income and $148 million in adjusted EBITDA. Adjusted EBITDA is a company-defined non-GAAP measure, not a substitute for GAAP net income.
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.
Roku said in its April 30, 2026 shareholder letter that it had passed 100 million Streaming Households in April. It also reported 145.6 billion streaming hours for fiscal 2025, up 15% from 2024. Roku cautions in its 2025 Form 10-K that measured hours can include playback when a viewer is not actively watching and do not correlate period by period with revenue or average revenue per user (ARPU). Treat hours as an engagement measure, not as a direct forecast of sales.
Profitability and cash flow require like-for-like comparisons
Revenue growth does not establish whether either company is producing durable profits or cash. Compare GAAP operating income, net income, operating cash flow, investing cash flow and balance-sheet liquidity for the same periods before relying on alternative performance measures.
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 reported $483.6 million of trailing-twelve-month free cash flow as of December 31, 2025. Roku labels free cash flow a non-GAAP measure and warns it should not replace GAAP financial information. Netflix also defines free cash flow as a non-GAAP measure: its investor materials describe it as cash provided by or used in operating and investing activities and caution that it should not replace GAAP measures. The companies’ labels do not make their calculations interchangeable, so a meaningful comparison requires reconciling the underlying definitions and cash-flow statements.
Cash flow can also diverge from reported net income because the timing of content payments affects Netflix’s cash flows. For both companies, look at more than one reporting period: a single quarter or trailing-twelve-month figure may not capture seasonality, investment timing or changes in the business.
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
Which risks differ between the stocks?
Netflix: membership, content and currency
- Member demand and retention: Netflix says an inability to attract, retain or engage members can hurt results. Competition for both subscribers and viewing time comes from established and newer entertainment providers.
- Content performance and cost: Netflix invests substantially in acquired, licensed and original programming. A slate that fails to meet audience expectations, or production, talent and completion problems, can affect results.
- Foreign exchange: Currency movements can affect reported financial results because Netflix operates internationally.
Roku: advertising, platform execution and device economics
- Advertising cyclicality: Platform growth depends in part on advertising monetization, which can be affected by macroeconomic conditions and changes in advertiser demand.
- Competition and monetization: Roku describes the streaming-TV industry as highly competitive. Growth in households or viewing does not guarantee that the company can monetize that activity at the expected rate.
- Partner relationships: 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 relationships with major content partners material.
- Device trade-offs: Pricing players or TVs to attract households can weigh on device gross profit. The strategy depends on earning longer-term platform revenue from those households.
How to decide which stock fits your analysis
There is no supported “better stock” verdict from operating growth alone. The choice depends on which business risks and sources of growth you believe are more durable, as well as each stock’s valuation at the time you invest.
- Identify the revenue driver you are underwriting. For Netflix, assess membership, pricing, retention and content returns. For Roku, assess advertising and distribution monetization, household growth, platform competition and the cost of acquiring households through devices.
- Separate segment growth from companywide growth. Roku’s Platform and Devices results can move in opposite directions, as they did in Q1 2026. Netflix’s reported growth is primarily tied to its subscription-led business, with advertising still a smaller component in the cited annual filing.
- Check GAAP results and cash generation together. Review operating income, net income and cash-flow statements alongside company-defined measures. Reconcile free-cash-flow definitions rather than comparing the labels alone.
- Assess the risks that could break the growth case. For Netflix, consider content economics, member engagement and currency. For Roku, consider advertising demand, platform monetization, partner concentration and device margins.
- Compare valuation on the same date and method. Use contemporaneous share prices and market capitalizations, and calculate comparable trailing or forward multiples using consistent definitions. The figures presented here do not establish an October 5, 2026 valuation set for both companies, so they cannot support a claim that either stock is cheaper or better value.
What Roku’s 2026 outlook does—and does not—say
In its April 30, 2026 shareholder letter, Roku gave Q2 and full-year 2026 outlook and described a path toward $1 billion in free cash flow by 2028. These were management expectations at that time, not achieved results or guarantees. The letter’s forward-looking statements are subject to risks.
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
Management 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.” This is Roku management’s forward-looking view, stated in the company’s April 30, 2026 shareholder letter; it should be evaluated against subsequent reported results, not treated as a forecast certainty.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
