Roku paid an additional forecast in Q1 2025 earnings and announced a $185 million deal to buy Frndly TV, a low-cost subscription streaming service that provides live TV for live TV, on-demand video and cloud-based DVR.

In the first quarter, Roku's total revenue was $1.02 billion, an increase of 16%. Net loss was $27.4 million, or 19 cents per share, and the net loss from a net loss a year ago improved. Analysts' consensus estimates have already drawn revenue of $1.01 billion and a net loss of 25 cents, according to LSEG data and analysis.

Roku's acquisition of Frndly TV is expected to be completed in the second quarter, awaiting the usual closing conditions. According to Roku, the total purchase price is $185 million in cash, including a $75 million retreat, which is related to achieving performance targets and milestones over the next two years.

Located in Denver and founded in 2019, Frndly TV itself is “the most affordable live TV streaming service.” It provides subscribers with access to over 50 live TV channels, including A&E, Hallmark channels, history and lifetime, and thousands of hours of on-demand content starting at $6.99/month.

Frndly TV’s team, including co-founder and CEO Andy Karofsky, will remain in touch with Roku after the deal is over. In addition to the Roku device, Frndly TV will continue to be available on all devices and platforms currently available, including Amazon Fire TV, Android TV, Google TV, Apple TV, Samsung, Samsung, Vizio, Web, Web (via Chromecast), and Android and iOS Mobile devices.

“Frndly TV’s impressive subscription service in direct-to-consumer subscription services make it a compelling addition to Roku,” Anthony Wood, founder and CEO of Roku, said in announcing the deal. “This acquisition supports our focus on growing platform revenue and Roku-buld subscriptions, with real-time content providing our users with love at industry-leading prices.”

Looking ahead, Roku said: "While macro uncertainty is more than normal, we are based on current visibility and the best outlook we have observed in the business." For the second quarter, it estimated total net revenue to be about $1.07 billion, an 11% year-on-year increase. This is only the June quarter's analyst consensus estimate of $1.09 billion.

"While the impact on our equipment sector remains difficult to predict, we expect equipment revenue and gross profit losses to be consistent with the 2024 levels," Wood and CFO Dan Jedda wrote in a Q1 letter to shareholders. "We remain vigilant and adaptable as market conditions develop. Although uncertainty remains, we are confident in our strategy and continue to see the path to active operating revenue in 2026."

In the first quarter, the company's platform segment, including advertising and subscription revenue sharing transactions, increased revenue by 17% to $880.8 million. Roku's device revenue was $140 million, up 11%. The cumulative streaming hours across households in the quarter were 35.8 billion, an increase of 17% from the same period last year.

With Q1 results, Roku has stopped reporting quarterly streaming household numbers (and by expanding to average revenue per unit) to shift focus to financial metrics; Netflix made similar changes through its own first-quarter earnings. Roku reported that as of the end of 2024, Roku reported that it expects “to continue to grow streaming homes in all our locations,” including the U.S., with estimated its media devices used in half of broadband homes.

Last week, Roku launched a series of new streaming players, TVs produced by Roku and updates including the addition of the "upcoming theater" line and the addition of personalized sports highlights to its interface.

In addition, in a lawsuit filed by Michigan Attorney General Dana Nessel, Roku was charged this week with violating children's private laws. The company said it "strongly disagrees with" the lawsuit, "which does not reflect the way we serve or the efforts to protect audience privacy. We plan to challenge these inaccurate claims and look forward to demonstrating our commitment to trust and compliance."