Roku Inc. reported first-quarter 2025 earnings with total revenue reaching $1.02 billion, a 16% increase year-over-year, surpassing Wall Street's estimate of $1.01 billion. The company's net loss narrowed to $27.4 million, or a loss of 19 cents per share, compared to a $50.9 million loss a year earlier, beating the expected loss of 26 cents per share. Adjusted EBITDA was reported at $56 million, up 37% year-over-year. Roku's platform revenue, which includes advertising and subscription revenue-sharing deals, grew by 17% to $881 million, while devices revenue increased by 11% to $140 million. The company also reported a 15% year-over-year increase in gross profit, totaling $445 million, and streaming hours rose by 17% to 35.8 billion. The Roku Channel became the second most engaged app on the platform in the U.S. Alongside its earnings report, Roku announced the acquisition of Frndly TV, a subscription streaming service, for $185 million in cash. The deal includes $75 million in performance-based holdbacks, with the transaction expected to close in the second quarter of 2025. Frndly TV, known for its affordable live TV offerings, will continue to operate on multiple platforms post-acquisition. Looking ahead, Roku provided guidance for the second quarter, estimating total net revenue of about $1.07 billion, slightly below the consensus estimate of $1.09 billion. The company also projected a gross profit of approximately $465 million and an adjusted EBITDA of about $70 million for Q2. Roku reaffirmed its full-year 2025 platform revenue outlook at $3.95 billion and projected an adjusted EBITDA of $350 million. Roku has stopped reporting quarterly streaming household figures, last reporting 89.8 million streaming households at the end of 2024. The company recently unveiled new streaming players and Roku-made TVs, and is facing a lawsuit regarding child-privacy laws.