Roku Q2 earnings ahead: Street sees upside potential from Amazon partnership

Consumer electronics company Roku (NASDAQ:ROKU) is set to report its second quarter earnings on Thursday, July 31st, after the closing bell. Investors will be looking closely for growing signs of ad inventory, potential growth from Amazon partnership, and subscription growth.

Analysts expect Roku to report a loss per share of $0.16 on a revenue of $1.07B, a 10% growth from last year.

Wedbush analysts expect Roku to benefit from its DSP partnerships, high-quality inventory, improved targeting, sports-adjacent ads, and various price points across its platform.

Analysts model Roku’s platform revenue up 14% YoY to $940M, in line with guidance.

“That said, we see upside potential to guidance given Roku’s increasingly diversified business model, with expanding advertising opportunities, and achievable parameters throughout its operating model,” analysts said.

Wedbush expects Roku to maintain its 2025 EBITDA guidance and 2026 target for positive operating income, as it did in Q1.

Over the last 3 months, EPS estimates have seen 4 downward revisions. Revenue estimates have seen 2 upward revisions and 21 downward.

Analysts at Bank of America hiked their price target on Roku (ROKU) earlier this month and reiterated their bullish rating, citing improving macroeconomic sentiment and viewing its recently announced Amazon (AMZN) partnership as favorable.

They see the Amazon partnership “as another proof point that Roku intends to be more flexible and drive further interoperability within their platform.”

Roku (ROKU) shares were up more than 1% in Wednesday trading hours. The company has increased more than 21% in market value so far this year.