68 added · 74 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
For example, we use AI technologies to power our content recommendation engine and our content row on the Roku Home Screen to provide more personalized recommendations.
For example, in 2025, we acquired Frndly TV and launched Howdy, both of which are owned and operated subscription streaming services.
For example, delays or disruptions at U.S. ports of entry have in the past, and may in the future, adversely affect our or our licensed Roku TV partners’ ability to timely deliver products to retailers during holiday seasons.
For example, our revenue and gross profit are traditionally strongest in the fourth quarter of each fiscal year due to higher consumer purchases and increased advertising during holiday seasons.
For example, consolidation among content partners has in the past resulted, and may in the future result, in decreased spending on ads integrated into our UI.
We also assume risks associated with content production, such as completion and key talent risks, and the risk of litigation and claims related to our content production.
We also use AI technologies to improve measurement and performance in Roku Ads Manager and drive internal operational productivity and efficiency.
Risks Related to Our Business and Industry If we fail to differentiate our streaming platform and compete successfully with our competitors, it will be difficult for us to attract and retain users and our business will be adversely impacted.
Historically, a small number of advertisers and content partners have accounted for a significant portion of the spending on ads integrated into our UI, and we are making efforts to expand the number and categories of advertisers spending on these ads.
If our advertisers and content partners decrease spending on ads integrated into our UI, or if our efforts to broaden the categories of advertisers spending on these ads are unsuccessful, our financial condition and operating results may suffer, and our business may be harmed.
We expect to encounter more of these challenges and issues as the number of partners we integrate with increases. 12 Table of Contents We may not be successful in our efforts to further monetize our expanding user base and streaming activity as we increase the amount of content offered and streamed across our platform, which may harm our business.
Furthermore, if the advertisements on our ad-supported streaming services are not relevant to our users or are overly intrusive and impede our users’ enjoyment of the available content, our users may not stream content and view advertisements on our streaming services, and our streaming services may not generate sufficient revenue from advertising to be cost effective for us to operate.
No longer disclosed
For example, we have introduced a generative-driven ad creation service for our advertisers to help them create ads more easily, and we continue to use AI technologies to power our content recommendation engine and our content row on the Roku Home Screen.
In addition, from time to time we have experienced unanticipated increases in demand that resulted in the need to ship our products via air freight, which is more expensive than ocean freight, and adversely affected our devices gross margin during such periods of high demand (for example, during end-of-year holidays).
For example, spending commitments we obtain in connection with annual TV Upfront presentations are typically not fully binding, and the revenue we receive from such commitments may be less than the initially committed amount.
Risks Related to Intellectual Property • intellectual property infringement claims and litigation resulting in significant costs or the loss of important intellectual property rights; • failure or inability to protect or enforce our intellectual property or proprietary rights; • our use of open-source software; • our agreements to indemnify certain of our partners if our technology is alleged to infringe on third parties’ intellectual property rights;
We also assume risks associated with content production, such as completion and key talent risks, and the risk of litigation and claims related to our content production. 14 Table of Contents Furthermore, if the advertisements on The Roku Channel are not relevant to our users or are overly intrusive and impede our users’ enjoyment of the available content, our users may not stream content and view advertisements on The Roku Channel, and The Roku Channel may not generate sufficient revenue from advertising to be cost effective for us to operate.
For example, our contract manufacturers order materials and components in advance in an effort to meet our projected needs for our products.
From time to time, we may remove underperforming content from The Roku Channel and record an impairment charge related to such removal.
We expect continued competition in TV streaming, which could result in pricing pressure, lower revenue and gross profit, declines in our key performance metrics, or the failure of Roku streaming devices, our streaming platform, or our other products to gain or maintain broad market acceptance.
If our smart home and audio products do not operate as designed or do not enhance the Roku Experience as we intend, our users’ overall viewing experience may be diminished, which may impact the overall demand for our products and our partners’ Roku TV models.
These services, as well as other services such as YouTube and services that have FAST channels (such as Tubi and Pluto), sell (either through direct sales or programmatically through third parties) advertising inventory in their ad-supported content that is distributed on our streaming platform.
If advertisers, or their agency relationships, do not perceive meaningful benefits of advertising on our TV streaming platform, the market may develop more slowly than we expect, which could adversely impact our operating results and our ability to grow our business.
However, a small number of content partners historically have accounted for a significant portion of the spending on ads integrated into our UI, and consolidation among content partners has in the past resulted, and may in the future result, in decreased spending on ads integrated into our UI.