Roku is no longer priced as a standalone connected-television platform. The June merger agreement with Fox Corporation recasts the equity as a cash-and-stock claim on a combined media and distribution company, with closing targeted for the first half of 2027. Founder Anthony Wood and affiliated holders, who control a majority of voting power, signed a voting agreement in favor of the deal. The operating print still matters because it is the fallback if antitrust review or partner-neutrality objections stop the combination.
The second quarter showed the platform can print real profit, not just hours. Platform revenue reached $1.22 billion as advertising and subscriptions both advanced. Adjusted EBITDA, a non-GAAP measure that strips stock-based pay, depreciation, merger costs, and taxes from net income, hit $254 million. Streaming hours rose only in the mid-single digits, which means monetization, not audience growth, did the work. Devices remain a subsidized distribution channel whose reported margin was flattered by a tariff refund.
Net income of $164 million marked the fifth consecutive quarterly profit. Trailing free cash flow, defined as cash from operations minus capital spending, reached $704 million. The Justice Department issued a Second Request on the Hart-Scott-Rodino review in early September, stretching the waiting period. The investment question is whether the tight spread to deal value holds through a longer antitrust clock, or whether the standalone platform multiple reasserts itself if Fox stock slips or content partners balk at a Murdoch-controlled home screen.