Roku Q1 2025: Mispriced or Misunderstood?
Roku posted +109% EBITDA growth and +15.8% revenue in Q1 — beating most media and ad tech peers. Yet it still trades at <2x P/S.
Here's why this stock might be the most undervalued platform in CTV.
#Roku #AdTech #Earnings #CTV #TTD
Revenue growth is decelerating — from 22% in Q4 to 15.8% in Q1 — but margins are accelerating.
This isn’t just a “growth story” anymore. It’s a platform leverage story.
EBITDA growth:
Roku: +109%
TTD: +89%
NFLX, GOOGL, AMZN: all lower
#Stocks #Monetization #Valuation
Roku’s valuation disconnect is wild:
TTD trades at ~9.5x P/S
Roku trades at <2x P/S
Yet Roku is growing faster AND scaling EBITDA more efficiently.
This isn’t a hardware company anymore — it’s a CTV operating system with ad rails.
#Streaming #FCF #Roku
Bear case watch:
ARPU growth slowing (6–7%)
FCF down YoY
Monetization still lags engagement
If Roku can’t close that TRC-to-revenue gap, the multiple stays stuck.
But if it does — re-rating potential is huge.
#Investing #Compounders #TechStocks
