Roku to launch streaming bundles as part of its efforts to continue growing its profitability

Roku has unveiled its fourth-quarter earnings for 2025, revealing an array of exciting initiatives aimed at bolstering its profitability. The company is set to introduce new streaming bundles, expand its $3 subscription service, Howdy, to additional platforms, and forge partnerships with more premium streaming services following the successful integration of HBO Max. The launch of these bundles in 2026 comes as a strategic response to the increasing subscription costs across the industry, positioning Roku to attract viewers seeking budget-friendly options. With many streaming services raising their prices, Roku is keen to cater to the cost-conscious consumer, making this move more pivotal than ever. The positive influence of HBO Max on Roku’s premium subscription numbers has encouraged the company to continue this growth strategy by welcoming more high-profile partners, which is expected to drive further expansion. Roku's ad-free subscription service, Howdy, which debuted last year, will see a broader rollout beyond the Roku platform. Although specific expansion details are yet to be revealed, CEO Anthony Wood emphasized at CES last month the company’s ambition to make Howdy widely accessible, stating, “We want to distribute it everywhere.” In terms of user engagement, Roku reported that its users streamed a staggering 145.6 billion hours of video in 2025, reflecting a 15% increase compared to the previous year. The company is also approaching the significant milestone of 100 million streaming households, although it has opted to report this figure less frequently. Financially, Roku had a strong quarter, achieving a net income of $80.5 million, a notable recovery from a $35.5 million loss during the same period last year. Total revenue for Q4 2025 reached $1.4 billion, marking a 16% year-over-year rise. Looking toward the future, Roku is optimistic, projecting total net revenue of $5.5 billion and gross profit of $2.4 billion. Wood expressed confidence in the company’s trajectory, stating, “In 2023, our priority was to rightsize our cost structure and reach adjusted EBITDA breakeven in 2024, and we achieved that goal a full year ahead of schedule. Looking ahead to 2026 and beyond, we are confident in our ability to sustain double-digit platform revenue growth while continuing to grow profitability.”